Factors Affecting Growth Of Small And Medium Agro-Processing Firms In Tanzania: A Case Of Sunflower Oil Processor In Dodoma

ABSTRACT

SMEs in Tanzania have been growing rapidly, however they have showed that there is high possibility of them meeting their death or stagnation. Therefore, this study examined the factors affecting the growth of small and medium agro-processing firms in Tanzania. An analytical cross-sectional design and descriptive design was adopted; the sample size of 100 respondents was obtained. Statistical Package of Social Sciences (SPSS) version 21 was used to analyze the quantitative data found in the field. The study found out that, financial resources, raw materials, access to market affects, managerial, technology as well as government policy and regulations influence the growth of small and medium agro-processing firm in Tanzania. Lack of capital, supply of raw material and access to the formal markets and markets outside of Tanzania was also a limitation due to poor technology and lack of certification. Lastly, regulations and technology equipment for processing were identified as a set of factors that affect the processors and growth go the firm. This result implied that the growth of the agro-processing firm in Tanzania depends on technological, financial resource and government policy and regulations. This study recommends Tanzania government should make sure they put much emphasis on training SMEs on the importance of using technology in their business as to raise their level of awareness and knowledge. The government should put clear, easy and friendly conditions and regulations for the small and medium processors to register their firms.