SME development policies of Tanzania and Rwanda: comparability of policy presentation on focus, significance, challenges and participation

Abstract

The world’s new ideologies of regionalisationism and globalizationism anchor on the role of Small and Medium Enterprises (SMEs) for promotion of a healthy business climate for upgrading the private sector and engineering for economic efficiency and development. SMEs have been a mechanism of inclusion and equity for economic empowerment and deepening of economic and business services especially in developing countries. The SMEs‘cultural and socio-economic importance has driven the initiation of national SME development in many countries. SMEs have gained elevating importance in developed and developing economies, have the capability of quick adaptation, low cost of management, less capital and sometimes labor intensive for enabling cheap production. Despite their size related weaknesses, SMEs are less affected by economic crises due to their inherent flexibility and adaptability characteristics. SMEs are vital actors for enhancing entrepreneurial innovation and innovation system as well as competitiveness in economies. National SME development policies, being high level political intent, directives and guidelines are critical for development, coordination and deployment of potential and available resources and capabilities. The paper, therefore, aims at analyzing and comparing the presentations of SME development policies of Tanzania and Rwanda based on policy framework options namely, focus, significance, challenges and participation. The findings show elevating differences in various spheres of the policy processes including the SME definition, vision, mission and objectives in terms of activeness in presentation, political flavour, sharpness of intent and sense of anticipated commitment. This implies a continued gap of SME development between countries under review and other East African Community (EAC) member countries until policies affecting SMEs are harmonized.

Keywords: SMEs, Policy Presentation, Policy Framework, Entrepreneurship, BDS, Tanzania, Rwanda