Factors Affecting the Growth of Small and Medium Enterprises in Kinondoni Municipality

Shangwe, Devotha (2019) Factors Affecting the Growth of Small and Medium Enterprises in Kinondoni Municipality. Masters thesis, The Open University of Tanzania.

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Abstract

The study was undertaken on the Factors Affecting the Growth of Small and Medium Enterprises in Kinondoni Municipality. The study general objective was to evaluate factors affecting growth of SMEs in Kinondoni Municipality. The study was further guided by three specific objectives, to identify types of SMEs existing in Kinondoni Municipality, to examine factors affecting growth of SMEs in Kinondoni Municipality, to assess policies and practices guiding the practice of SMEs affecting their growth in Kinondoni Municipality. The study performed using both exploratory and explanatory research designs using causality testing approach in ensuring knowledge gathering and creation in filling the study gap. Data were specifically collected in Kinondoni Municipality from 100 SMEs owners existing using the questionnaire and interviews for the key informants. The information as facts to generate knowledge were assembled and computed in SPSS for generation of analytical tools to present the data. Descriptive statistics were first generated to show the characteristics of the respondents. Moreover, correlation and multiple regression analysis were performed to show the existing relationship between study variables. The results as findings were certain and clear that all three study hypotheses were positive and significant statistically on the growth of SMEs. The findings of this study show that the growth of SMEs in Tanzania is positively affected by several factors with internal and external influence and ethnic factor since were all found positive with only one factor as the being ethnic issue being insignificant. The study further recommends that the government must keep on creating and further establishing favourable environment for the operations and growth of the enterprises more for the greater good of the economy.

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