Assessment on the Role of Leadership on the Performance of Small and Medium Enterprises (SMEs) in Tanzania.

Mkembe, Mwasiti A. S. (2021) Assessment on the Role of Leadership on the Performance of Small and Medium Enterprises (SMEs) in Tanzania. Masters thesis, The Open University of Tanzania.

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Abstract

The study assessed the role of leadership on the performance of micro-enterprises in Tanzania. The study was guided by three specific objectives, which assessed factors affecting adequate leadership management in micro-enterprises in Tanzania, to determine leadership challenges affecting the performance of micro-enterprises and to examine environmental conditions affecting effective leadership in micro-enterprises in Tanzania. The study employed exploratory design through a qualitative approach in assuring the information gathering process from the sample of 100 respondents.. The study findings revealed that the factors affecting management of adequate leadership, limited business vision, willingness to engage in the practices, and level of business investment have been issues reported to affect the management of the enterprises. Also, with leadership challenges, it has been noted that limited awareness of leadership, limited capability, formal education and skills have been hindering the performance of micro-enterprises through leadership practices. Moreover, some environmental aspects such as tax compliance, statutory requirements on some businesses and access to financial services have been identified as affecting effective leadership towards performance in micro-enterprises. The implication of the results is that leadership indeed has a significant effect on the performance of micro-enterprises. The study recommended that it is necessary for the non-state actors as non-government organizations and government entities responsible for assuring awareness generation on the enterprises and the business sector to foster the role of leadership to the owners in micro-enterprises for the purpose of guaranteeing good practices. Keywords: Leadership, Small and Medium Enterprises, Performance, Micro Enterprises.

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