Challenges Facing the Growth of Small and Medium Enterprises in Tanzania: A Case of Mbeya’s Mwanjelwa Market

Abstract

The study investigated the challenges hindering the growth and sustainability of Small and Medium Enterprises (SMEs) in Tanzania,  focusing on implementing the SME Policy 2003. The main objective was to assess the effectiveness of SME policy in fostering business  growth, particularly in the Mwanjelwa Market in Mbeya City. The study employed a descriptive design with a sample size of 90 respondents, selected using convenience sampling. The key findings indicate that SMEs face significant challenges related to access to  finance, complex regulatory environments, limited market access, inadequate skills and training, and slow technological adoption. The  under-utilization of government-built infrastructure and insufficient implementation of supportive policies exacerbate these challenges.  The study found that the underutilization of storey buildings for small businesses is that business people and customers do not prefer  searching for or buying upstairs. The study concludes that, although the Tanzanian government has supported SMEs, more must be done  to address these barriers effectively. It recommends enhancing financial literacy programs, simplifying the regulatory framework,  improving market access through infrastructure development and ecommerce, investing in business management training, and  promoting technology adoption among SMEs. These measures would be essential for creating a conducive environment for SME growth  and ensuring long-term sustainability.