The Role Of Government In Improving The Performance Of Small Medium Enterprises. A Case Study Of Dodoma Tanzania

ABSTRACT

SME is a large industry with many operators such as hotels, companies involved in business. In

SME guidelines are required for its sustainability, investment incentive and financing, capacity

building and private sectors are the strategies of the Tanzania SMEs policy. The services

provided by SMEs are low compared to th.e number of SME.

The study used descriptive research design. The study population was 40 entrepreneurs of which

one did not respond, the sample were selected from operators, hotels, travel companies, agencies

and economic institutions were randomly selected in Dodoma town. One validated percentages,

frequency counts and means were used to analyze the data. The result shows that many of the

SME got their capital from the financial institutions such as banks and SACCOs, they also got

from their saving income, selling of their shares, insurance policies and house hold assets. The

results showed clearly that the legal frame work as a whole is not conducive for the growth and

development of SMEs. Other hindrances are limited market and lack of skilled labor. Otherwise

issues such as licensing and registration procedures were shown to be conducive for SMEs. It is

recommended that the government should provide incentive training to the SME that reflect the current market demand.