Determinants of Sustainability of Small and Medium-Sized Enterprises (SMEs): A Case of Dodoma Urban District, Dodoma, Tanzania

Abstract

This study investigates the factors influencing the
sustainability of Small and Medium-Sized
Enterprises (SMEs) in Dodoma Urban District,
utilizing a sample of 139 SMEs. Data analysis,
conducted with SPSS version 26.0.1, revealed that
proactive competitive strategies, financial
accessibility, technology adoption, and strategic
location significantly contribute to SME
sustainability. Effective financial management,
including improved access to credit, and strong
entrepreneurial skills, supported by education and
business experience, were also identified as critical
determinants. The study recommends updating the
SME Development Policy of 2002 to emphasize
technological integration, skill development, and
financial planning. Additionally, future research
should examine the impact of global market
dynamics, the adoption of digital payment systems,
and the effectiveness of entrepreneurial training
programs on enhancing SME sustainability.