Strategies to Encounter Problems Faced by Small And Medium Enterprises Dealing with Sea Foods Business in Tanzania on Capital Acquisition from Various Financial Institutions

Magutu, Z.K. (2011) Strategies to Encounter Problems Faced by Small And Medium Enterprises Dealing with Sea Foods Business in Tanzania on Capital Acquisition from Various Financial Institutions. Masters thesis, The Open University of Tanzania.

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Abstract

The small medium enterprise (SMEs) plays a crucial role in employment creation and income generation in Tanzania. SMEs all over the world and Tanzania in particular, can be easily established since their requirements in terms of capital, technology management and even utilities are not as demanding as it is the case of large enterprises. These enterprises can also be established in rural settings and thus add value to the marine products and at the same time facilitate the dispersal of enterprises. Indeed SMEs development is closely associated with more equitable distribution of income and thus important as regards poverty alleviation. At the same time, SMEs serve as a training ground for emerging entrepreneurs. SMEs important as they are to the economy have been facing a number of problems despite of the ongoing reform programmes. This is due to a number of factors one of which is a persistent culture that has not recognized the value of entrepreneurial initiatives in improving the lives of the people. Other factors include complex bureaucratic and costly legal regulations, administrative environment, where SMEs are at a greater disadvantage than their counterparts that are larger in size and the problem of capital mobilization or capital generation. The fisheries sector has a lot of economic and social significance to the country. The sector contributes around 10% of the National GDP. It provides a source of employment and livelihood to substantial number of people. The SMEs dealing with sea foods business in Tanzania have been facing some problems on getting capital to run their business.

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