Investigation of the Influence of Government Policies on Entrepreneurship Performance in Tanzania:A Case of Kinondoni Municipal

Mtebene, Haroun (2011) Investigation of the Influence of Government Policies on Entrepreneurship Performance in Tanzania:A Case of Kinondoni Municipal. Masters thesis, The Open University of Tanzania.

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Abstract

Entrepreneurship has been seen as a hub in generating income for the majority of urban dwellers with no formal paid employment. The full potential of the SME sector has yet to be tapped due to the existence of a number of constraints hampering the development of the sector. It is for this reason that SME Development Policy was formulated so as to address the constraints and to tap the full potential of the sector. This policy will serve as guidelines to all stakeholders and thus stimulate new enterprises to be established and existing ones to grow and become more competitive. In view of the importance of entrepreneurship this study is trying to investigate the influence of Government policies in entrepreneurship performance in Tanzania cited Kinondoni Municipality. The methodology used was case study. The population of the study was exhibited on different characteristics based on age, gender, educational level, and psychological indices. Total of 30 respondents were drawn from different entrepreneurs who deal with small businesses. The stratified sampling technique was employed in selecting respondents. The population was stratified according to gender and type of business owned, data was analyzed through SPSS. Based on study findings factors which inhibit entrepreneurial performance are marketing, capital and premises problems. These needed to be re-addressed in government policy and improved in order to facilitate entrepreneurial performance. For the case of Government policies, both ways the policy has been viewed by respondents as both facilitating and inhibiting entrepreneurial performance. Recommendations that are advanced by the researcher are workable policy on ensuring a sustainable and reliable market is to be put in place; direct market and marketing instruments need to be addressed in the policy so that the strategies implementation can have direct effects on the specific problems at hand. Efforts to address the problems of financing needs, education and training, capital needs, simplification of business working environment and registration processes to be addressed clearly and more realistically in the policy statement and strategies as the current policy did not seem to be completely effective.

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