Factors Influencing the Performance of Small and Medium Enterprises: A Case of Case of SME’s in Zanzibar

Issa, Hasnu M. (2014) Factors Influencing the Performance of Small and Medium Enterprises: A Case of Case of SME’s in Zanzibar. Masters thesis, The Open University of Tanzania.

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Abstract

Over the years, SMEs sector had played a critical role in developing Tanzanian economy through creation of employment opportunities, income generation, equitable distribution of income whence contributing towards poverty alleviation. However, this sector suffers a number of challenges in domestic and global market competition, despite varieties of opportunities that appear along the way. Currently, SMEs in Zanzibar face traditional hardships in finance, management skills, poor cash flow, deficit in accounting and several problems that hinder them from achieving good performance. The main objective of this research was to identify factors influencing the performance of SMEs in Zanzibar. In realizing this objective, the research used questionnaires as a method to collect key data from different SMEs and other stakeholders. Study findings indicated that there are several factors influencing the performance of SME;these include financial support, cash management, technology used and management capability and skills. The study recommends that SMEs in Zanzibar should strongly focus on looking for financial entities to have customer satisfaction by providing high quality and affordable products and services. This can be achieved through increased good financial support, improved management skills, provide good services, and multiple functions, reducing cost the products (Service cost) and enhancing promotional pricing.

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