The Role Of Consulting Firms On The Performance Of Small And Medium Enterprises In Tanzania: The Case Of Dodoma Region

ABSTRACT

The role of consulting services from the consulting firms like SIDO, Audit and Accounting Firms, and Ministry of Industry and commerce for small and medium enterprises (SMEs) growth and sustainability is poorly known especially their influence in the SMEs performance. The main objective of this study was to examine the role of consulting services in the performance of SMEs, using Dodoma Region as a case study. The study used a cross-sectional design method to collect data from one point in time from 93 respondents. The information was collected through questionnaire and interview. The findings revealed that SMEs which received consulting services in areas such as; tax, finance, business, training, and marketing have significant performance as compared to those which didn‟t. The sales revenue was reported to range from 4,000,100 to 5,000,000 TZS on annual basis for SMEs that received consulting services and hence, profit increased significantly. Furthermore, this study identified factors necessitating the need for consultancy services among SMEs and the barriers facing SMEs in procuring consulting services. The major barriers for accessing consulting services are attributed to the availability of consulting services, procedures and conditions to access consulting services. It is recommended that SMEs adhere to conditions, procedures, environments and policy framework as stipulated by SIDO. The government through the Ministry of Industry and Trade, should provide consultancy to SMEs in areas of management, marketing and credit accessibility and technology, these will ensure significant performance of SMEs and hence, the government will collect revenue and solve unemployment problem and enhance poverty alleviation.