Effect of Entrepreneurship Skills on the Performance of Small and Medium Enterprises in Kahama, Tanzania: A Case of Pride Supported Entrepreneurs

Meshack, Onyango Omondi Lameck (2014) Effect of Entrepreneurship Skills on the Performance of Small and Medium Enterprises in Kahama, Tanzania: A Case of Pride Supported Entrepreneurs. Masters thesis, The Open University of Tanzania.

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Abstract

Small and Medium Enterprises (SMEs) are a vital economic base for any economy. This study examined the effect of entrepreneurial skills on performance of SMEs in Kahama district, Tanzania. A survey using questionnaires and interview was carried out on a sample of entrepreneurs, Pride Tanzania staff and Village Executive Officers from five villages in Kahama town. The study showed that majority of entrepreneurs in Kahama district had no or very little training on Entrepreneurship and were engaged in several Small and Medium Enterprises (SMEs) which were necessity-based rather than opportunity-based. The study also found out that Entrepreneurs who accessed PRIDE Tanzania loans and had Entrepreneurship skills performed above average. They had the ability to recognize potentially profitable business opportunities, were risk takers and had the ability to align available resources to pursue business opportunities. Prior knowledge of customers’ needs and management skills were also important but were rated low. Several challenges were noted to affect growth and performance of SMEs. These included poor access to finance, lack of adequate market for their products and services, lack of business training and absence of government support and assistance. The study recommends training on entrepreneurship skills and provision of support services to SME owners. However, the new knowledge in this study is critical for designing other forms of research studies capturing other Entrepreneurs in other locations accessing loans from other lending institutions that will help in cementing the role of entrepreneurship skills to Small and Medium business owners.

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