Strategies for Enhancing the Growth of Small and Medium Enterprises in the Agro processing Industry in Tanzania

Kamuzora, Mukajungu (2013) Strategies for Enhancing the Growth of Small and Medium Enterprises in the Agro processing Industry in Tanzania. Masters thesis, The Open University of Tanzania.

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Abstract

The objective of the study was to identify factors that influence the growth of Small and Medium Enterprises (SMEs) in the agro-processing industry (food processing) of Tanzania. The target population for the study was SMEs in the agro- food processing sector. Purposive sampling was used to get the sample for both the survey and the interviews in order to include a desired and representative sample. The sample comprised of 22 SMEs in the agro-processing sector, managers from SIDO and Tanzania Private Sector Foundation. Qualitative and quantitative primary data were collected using in-depth interviews and questionnaires. Quantitative data analysis used descriptive statistical procedures involving cross-tabulation and frequency distribution. Data from in-depth interview were analysed qualitatively. The findings indicate that the major challenges facing the agro-food processing SMEs are scarcity of financing, inconsistence of government projects and programmes to support the development of the agro-processing enterprises; low level of entrepreneurships and management training of the SME owners; lack of technical guidance and counseling; technological gap; uncertain and costly power supply; and poor attention on marketing of products. In view of the observations made during this study, the following strategies are recommended to enhance growth of these agro-processing SMEs: set up special Agro-Processing Development Fund; skills development of the owners and managers in food processing and business management; marketing of products so as to establish reliable and sustainable markets for their products; providing continuous guidance and counseling to these SMEs and dissemination of information about successful enterprises so as to encourage potential enterpreneurs in the food processing sector.

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