Premium Essay

Why Small Business Fail in Tanzania

In:

Submitted By Ntuku
Words 308
Pages 2
1.0 introduction
A small business is a business that is privately owned and operated, with a small number of employees and relatively low volume of sales. Small businesses are normally privately owned corporations, partnerships, or sole proprietorships. The legal definition of "small" varies by country and by industry, ranging from fewer than 15 employees under the Australian Fair Work Act 2009, 50 employees in the European Union, and fewer than 500 employees to qualify for many U.S. Small Business Administration programs. Small businesses can also be classified according to other methods such as sales, assets, or net profits.
1.1characteristics of a small business
Not every small business eventually grows to the size of large corporation. Some businesses are ideally suited to operate on a small scale for years, often serving a local community and generating just enough profit to take care of company owners. Small-scale businesses display a distinct set of identifying characteristics that set them apart from their larger competitors.
Revenue and Profitability
Small-scale business revenue is generally lower than companies that operate on a larger scale. The Small Business Administration classifies small businesses as companies that bring in less than a specific amount of revenue, depending on the business type.
Employees
Small-scale businesses employ smaller teams of employees than companies that operate on larger scales. The smallest businesses are run entirely by single individuals or small teams. A larger small-scale business can often get away with employing fewer than one hundred employees, depending on the business type.
Market Area
Small-scale businesses serve a much smaller area than corporations or larger private businesses. The smallest-scale businesses serve single communities, such as a convenience store in a rural township. The very definition of

Similar Documents

Premium Essay

Small and Medium Enterprises

...African Journal of Business Management Vol. 5(4), pp. 1266-1276, 18 February, 2011 Available online at http://www.academicjournals.org/AJBM ISSN 1993-8233 ©2011 Academic Journals Full Length Research Paper Challenges and opportunities of Tanzanian SMEs in adapting supply chain management Sama Hamisi Procurement and Supplies Department, College of Business Education, Dodoma Campus, Dodoma, P. O. Box 2077, Tanzania. E-mail: samakicheche@yahoo.com. Tel: +255 755 292 850. Fax: +255 026 232 2121. Accepted 19 November, 2010 Around the globe, Small and Medium Enterprises (SMEs) have acquired a significant and pivotal position in the entire economic development process. Over the years, this sector had played a critical role in developing Tanzanian economy through creation of employment opportunities, income generation, equitable distribution of income whence contributing towards poverty alleviation. However, this sector suffers a number of challenges in domestic and global market competition, though, varieties of opportunities in adapting supply chain management exists. In today’s context of fast changing and dynamic economy and dominance of global supply chain systems, the SMEs in Tanzania, besides facing traditional hardships in finance, they misalliance the phenomenon of supply chain management thus fails to find proper place in the domestic and global supply chain leaving TNCs and MNCs to have a greater dominance. As Tanzania’s economic policy is about-turn...

Words: 8890 - Pages: 36

Free Essay

Business

...Business plan Private and confidential “FOR STARTING A MICROFINANCE INSTITUTION IN TANZANIA” Dar-es-Salaam June 2009 1 Table of Contents 1. 1.1. 1.2. 1.3. 2. 2.1. 2.2. 2.3. 3. 3.1. 3.2. 4. 4.1. 4.2. 4.3. 4.4. 5. 5.1. 5.2. 5.3. 5.4. 5.5. 5.6. 5.7. 6. INTRODUCTION AND BACKGROUND .....................................................3 Executive Summary..........................................................................................3 Mission and Goals ............................................................................................ 3 Macroeconomic Economic Situations in Tanzania ..........................................4 MARKET AND CLIENTS ..............................................................................5 Market ...............................................................................................................5 Microeconomic Background ............................................................................5 Clients ...............................................................................................................7 Business Environment Analysis .......................................................................9 Competitors ......................................................................................................9 Opportunities and Threats ..............................................................................11 CORRABORATION AND PARTNERSHIP .................................................

Words: 12735 - Pages: 51

Premium Essay

Scm in Food Industry

...Vol. 4, No. 12 International Journal of Business and Management Supply Chain Management and Challenges Facing the Food Industry Sector in Tanzania Juma Makweba Ruteri (Corresponding author) & Qi Xu Glorious School of Business and Management, Donghua University PO box 474, 1882 West Yan an Rd Shanghai, China Tel: 86-21-6237-3965 Abstract The complexities of food supply chain impose enormous challenges to the processors. As compared to multinational food companies operating in Tanzania, local firms have been performing inefficiently or going out of the business because they could hardly withstand the competition. SCM in the food industry sector was studied in a qualitative survey covered 23 food processing firms in Tanzania, with the purposes of identifying the existing supply chain operation, knowledge of SCM concept and challenges facing the sector. The findings of this study suggest that a lot of efforts need to be addressed to ensure that food processors benefit from SCM concept. The understanding of SCM concept among the processors seems to be low, thus, hindering them from taping up the advantages that SCM concept offer. The sector still faces a number of factors which impede the firms to grow fast and compete in the global market. Such factors include technical know-how, research and development, capital, managerial and physical infrastructures. Keywords: Supply chain management, Inventory management, Customer perceived value, Food industry 1. Introduction Food industry...

Words: 7627 - Pages: 31

Premium Essay

Agriculture

...Working Paper Series No. 16 Agricultural Marketing and Supply Chain Management in Tanzania: A Case Study Elina Eskola 2005 __________________________________________ ______________________________ 2 Success under Duress: a Comparison of the Indigenous African and East African Asian Entrepreneurs ESRF Study on Globalisation and East Africa Economies ARGICULTURAL MARKETING AND SUPPLY CHAIN MANAGEMENT IN TANZANIA: A CASE STUDY Elina Eskola12 ABSTRACT This study describes the prevailing marketing arrangements in Tanzania at local, regional, national and export markets using Dar es Salaam, Ifakara, and Mtwara as case study examples. The major impediments for trade in Tanzania has been categorised into three groups: 1) Physical infrastructure, 2) know-how and capital, and 3) institutional framework. Insufficient physical infrastructure in terms of roads increases the cost of transportation, works as an informal market barrier, forms a wedge between the supplier price and consumer price, and increases the loss of perishable products. Lack of know-how shows in poor market orientation and business skills, and leads to difficulties in managing and obtaining loans. Furthermore, the current institutional framework is unable to support the formation of strong traders and producers’ associations and other representative bodies to enhance capacity building and to bargain for fairer terms of trade. In addition, the lack of market information and the weak legal framework...

Words: 27148 - Pages: 109

Premium Essay

Joan

...Jones (MBA ’11) and his Harvard Business School (HBS) classmate Aaron Matto were on the ground in Dar es Salaam, the largest city in the Republic of Tanzania. They were there to assess the progress of the first slowsand water filter of their company— Urban Water Partners (UWP). Four months earlier, Jones and Matto, along with Ajay Kori (MBA ’11), partnered with Justin Iwasaki and Jason Young, two MD candidates at the University of Utah, to win HBS’s 2010 Social Venture Track Business Plan Contest. Their idea was to bring clean water to several African nations using a network of existing water vendors, readily available water purification technology, and mobile-banking technology. If they were successful in Dar es Salaam, the team planned to expand operations into several other African urban centers where water quality was poor. UWP’s seed money, the prize winnings from the HBS competition, would be gone at the end of the month, and the team had a meeting scheduled in late August with an HBS alumnus who was interested in investing in the company. At the meeting they intended to present their business plan, updating their original financial analysis with experience gained from two months of work getting UWP started. Of particular importance was to show UWP’s path to profitability: the team knew there was considerable skepticism among investors that clean water could be delivered profitably in an emerging African economy like Tanzania. Origins of UWP On the first...

Words: 5400 - Pages: 22

Premium Essay

Pdf Doc

...i FACTORS LIMITING EFFECTIVE IMPLEMENTATION OF TRAINING PROGRAMMES IN PARASTATAL ORGANIZATIONS IN TANZANIA: A CASE STUDY OF TANZANIA ELECTRIC SUPPLY COMPANY LIMITED, DAR-ES-SALAAM AND COAST ZONE IGNATIUS SHENGENA MNDEME A DISSERTATION SUBMITED IN PARTIAL FULFILMENT OF THE REQUIREMENTS FOR THE DEGREE OF MASTER OF BUSINESS ADMINISTRATION (HUMAN RESOURCES MANAGEMENT) OF THE OPEN UNIVERSITY OF TANZANIA 2011 CERTIFICATION I, the undersigned certify that I have read and hereby recommend for acceptance by the Open University of Tanzania a dissertation entitled, “Factors limiting implementation of Training Programmes in Parastatal Organizations in Tanzania: A case study of Tanzania Electric Supply Company Limited, Dar-es-salaam and Coastal Zone”. In partial fulfillment for the requirements for the Degree of Master of Business Administration (Human Resource Management). Supervisor…………………………………… Dr. Chacha Matoka Date………………………………………….. iii COPYRIGHT No part of this dissertation may be reproduced, stored in a retrieval system or transmitted in any form or by any means, electronic, mechanical, photocopying, recording or otherwise without the prior permission of the author or the Open University of Tanzania in that behalf. iv DECLARATION I, Ignatius Shengena Mndeme, declare that this dissertation is my own original work and has not been submitted for a similar degree at any other University. Signature ……………………………. Date ………………………… v ...

Words: 12912 - Pages: 52

Premium Essay

Faces of Indebtness

...FACES OF INDEBTNESS 1) KENYA Kenyan borrowers promptly repay their loans despite the stiff interest rates and high inflation, presenting a lower default risk investment environment for banks compared to other parts of the world. The low default risk for banks has however not translated to lower interest rates for customers despite the credit referencing system taking effect. The credit risk is measured in terms of gross non-performing advances as a percentage of the total gross advances. A survey by audit firm RSM Ashvir, based on banks 2012 financial reports showed only 4.6 per cent of loans by banks in 2011 ended up as non-performing advances. The banking industry disbursed Sh1, 335 billion, out of which only Sh61.4 million was defaulted. The risk has consistently decreased from 7.9 per cent in 2009 to 6.3 per cent in 2010. With the increase in interest rates and inflation rate, non-performing advances were expected to go higher, but it is not the case. This shows that the risk in the Kenyan market is low Interest rates spiked in December 2011 after the Central bank increased its key lending rate to a high of 18 per cent to curb the inflation rate which had peaked at 19.72 per cent in November that year. Though both the Central Bank Rate and inflation rate have dropped to 9.5 per cent and 4.11 per cent, banks are still lending at an average of 17.84 per cent. Microfinance institutions in Kenya have suffered significant loan repayment default resulting into subsequently...

Words: 8289 - Pages: 34

Free Essay

Microfinance

...lack empirical support and several limitations and obstacles continue to haunt the potential outcomes of microfinance, such as selection bias (Tedeschi, 2007) and lack of integration with the commercial banking sector (Copestake, 2007). In my thesis, I will focus on yet another limitation, that of lack of entrepreneurial knowledge amongst lenders in microcredit. I will develop on the marginal impact of entrepreneurial training on microcredit and suggest an empirical framework. The paper will start by presenting the topics of entrepreneurship and microfinance and the current situation in Tanzania. In Part II a review of an important study by Karlan and Valdivia will be discussed and in the following section a suggestion for a framework for an empirical study will be made. Conclusions and limitations will be presented in the final sections. Student: Eva Teekens ID: 5704871 Study: Master Business Studies Specialization: Entrepreneurship Supervisor: Prof. Sautner Handed in: 16-06-2009 Pages: 82 Table of Contents 1. Introduction and Scope of the Paper .................................................................................................... 4 PART I...

Words: 23632 - Pages: 95

Free Essay

Factors Affecting Coffee Production

...FACTORS AFFECTING SMALLHOLDER COFFEE PRODUCTION IN KARAGWE DISTRICT, TANZANIA FACTORS AFFECTING SMALLHOLDER COFFEE PRODUCTION IN KARAGWE DISTRICT, TANZANIA By Rodrick Wilbroad Mugishagwe A Dissertation Submitted in Partial/Fulfilment of the Requirements for the Degree of Masters of Science in Economics (Project Planning and Management) of Mzumbe University 2015 CERTIFICATION We, the undersigned, certify that we have read and hereby recommend for acceptance by the Mzumbe University, A dissertation entitled Factors Affecting Smallholder Coffee Production in Karagwe District, Tanzania, in partial/fulfilment of the requirements for award of the degree of Master of Science in Economics (Project Planning and Management) of Mzumbe University. ___________________________ Major Supervisor ___________________________ Internal Examiner External Examiner Accepted for the Board of ………………………………… _________________ DEAN/DIRECTOR, FACULTY/DIRECTORATE/SCHOOL/BOARD DECLARATION AND COPYRIGHT I, Rodrick Wilbroad Mugishagwe, declare that this dissertation is my own original work and that it has not been presented and will not be presented at any other University for a similar or any other degree award. Signature ____________________________ Date ________________________________ © This dissertation is a copyright material protected under the Berne Convention, the...

Words: 14962 - Pages: 60

Premium Essay

The Social Forces Behind Trade Union Failure to Protect Workers Interest in Tanzania: a Specific Look at the Tanzania Teachers Union

...THE SOCIAL FORCES BEHIND TRADE UNION FAILURE TO PROTECT WORKERS INTERESTS IN TANZANIA: A specific look at the Tanzania Teachers Union (TTU) Eric Michael Mattaba B.A (Sociology) Dissertation University of Dar es Salaam August 2015 THE SOCIAL FORCES BEHIND TRADE UNION FAILURE TO PROTECT WORKERS INTERESTS IN TANZANIA: A specific look at the Tanzania Teachers Union (TTU) By Eric Michael Mattaba A Dissertation submitted in partial fulfillment of the requirements for the degree of Bachelor of Arts (Sociology) of the University of Dar es Salaam University of Dar es Salaam August 2015 CERTIFICATION The undersigned certify that they have read and hear by recommend for acceptance by the University of Dar es Salaam a dissertation entitled: The social forces behind trade union failure in protecting workers interest in Tanzania: A specific look at the Tanzania Teachers Union (TTU), in fulfillment of the requirements for the degree of Bachelor of Arts (Sociology) of the University of Dar es Salaam Mr. Armstrong Matogwa (Supervisor) DECLARATION AND COPYRIGHT I, Eric Michael Mattaba, hereby declare that this dissertation is my own original work and that it has not been presented and will not be presented to any other University for a similar or any other degree award. Signature………………………………….. This dissertation is a copyright material protected under the Berne Convention, the copyright Act 1999 and other international and national enactments in that behalf, on intellectual property...

Words: 14263 - Pages: 58

Free Essay

Uasin Gishu

...EFFECTS OF MICROFINANCE CREDIT ON THE PERFORMANCE OF SMALL AND MEDIUM ENTEPRISES IN UASIN GISHU COUNTY, KENYA RESEARCH PROJECT SUBMITTED TO CUEA, GABA IN PARTIAL FULFILLMENT FOR THE AWARD OF BACHELORS DEGREE EFFECTS OF MICRO FINANCE CREDIT ON THE PERFORMANCE OF SMALL AND MEDIUM ENTREPRISE IN UASIN GISHU COUNTY, KENYA BY KIBET K DENNIS BCOM/GC/543/11/12 RESEARCH PROJECT SUBMITTED TO CUEA, GABA IN PARTIAL FULFILLMENT FOR THE AWARD OF BACHELORS DEGREE DECLARATION Declaration by the Student I, the undersigned, declare that this project is my original work and that it has not been presented in any other university or institution for academic credit. KIBET K DENNIS BCOM/ GC/543/11/12 Signature.................................................... Date.................................... Declaration by the Supervisors This research project has been submitted for examination with our approval as university supervisors. Dr. Gedion Omwono Catholic University of Eastern Africa, GABA Campus Signature.................................................... Date.................................... ABSTRACT This study discusses...

Words: 11350 - Pages: 46

Free Essay

Islamic and Conventional Banking

...these instruments. Islamic and conventional banks are all banks but having different system of managements, aspects, history, products and even acceptance according to laws. The research will discuss these aspects and more to make people aware of these instruments so as to remove the confusion on them and make them choose the best with the best reasons. This study will be divided in to three chapters. Chapter one will be all about Islamic and Conventional banks, theirs nature, history, products offered and many more. Chapter two will discuss and show the similarities and differences of these banks. Chapter three as the final chapter will discuss the case study of Islamic banks in Tanzania. I pray to Allah to make this study be the sources of awareness about these banks especially in Tanzania where by people haven’t got exactly meaning and differences of these banks. 2) JUSTIFICATION OF THE RESEARCH: i. The research will define, show and explain the short history of Islamic and Conventional banks. ii. This research will show the comparison of Islamic and Conventional banks. iii. The research will show roles and activities of Islamic and Conventional banks in the community. iv. In this research products offered by these banks will be...

Words: 14520 - Pages: 59

Free Essay

Logistic

...Review of Warehouse Receipt System and Inventory Credit Initiatives in Eastern & Southern Africa Final report commissioned by UNCTAD under the All ACP Agricultural Commodities Programme (AAACP) *The views expressed in this paper are those of the author and do not necessarily reflect the views of the United Nations September 2009 CONTENTS CONTENTS ............................................................................................................................................. i ACKNOWLEDGEMENT .....................................................................................................................iii GLOSSARY OF ABBREVIATIONS .................................................................................................. iv GLOSSARY OF ABBREVIATIONS .................................................................................................. iv SUMMARY ............................................................................................................................................ 1 Introduction ....................................................................................................................... 1 Observations on the different approaches ......................................................................... 1 Policy conclusions and recommendations ........................................................................ 3 Specific proposals .....................................................................

Words: 56151 - Pages: 225

Free Essay

Capitation Management

... DEPARTMENT OF BUSINESS ADMINISTRATION MBA-EXECUTIVE PROGRAMME 2009/2010 RESEARCH PROPOSAL By KIBIKI YUSTIN, L.M TITLE: MANAGEMENT OF CAPITATION GRANTS IN PRIMARY SCHOOLS OF TANZANIA: A CASE OF KIGOMA DISTRICT COUNCIL PROPOSED SUPERVISOR: DR MBOGORO DEPARTMENT OF ECONOMICS –UDOM 1. INTRODUCTION 1.1 Background to the Study Problem Sound Economic Governance is essential for the achievement of the desired reduction in poverty levels and improvements in economic growth in Tanzania. Good Public Financial Management (PFM) is important for efficient, effective and equitable utilization of scarce national resources (REF). Whilst the extent to which policy makers are held accountable to their constituents is an excellent indicator of good governance. Accountability and transparency go hand in hand in developing open and participatory decision-making processes. In 2005, the government of Tanzania reviewed the financial management practices and processes at the central government level. In 2006, the focus has shifted to local government, which now accounts for an increasing proportion of expenditures and is primarily responsible for service delivery in sectors such as primary education and primary health (URT, 2004). This kind of study is therefore wanting to provide a snapshot of how the resource allocation, resource management and control, resource utilization and accountability processes take place in primary schools of Tanzania and to make recommendations...

Words: 14395 - Pages: 58

Premium Essay

Human Resourse Management

...Fundamentals of human resource management African Studies Centre / University of Groningen / Mzumbe University African Public Administration and Management series, vol. 2 Fundamentals of human resource management Emerging experiences from Africa Josephat Stephen Itika Published by: African Studies Centre P.O. Box 9555 2300 RB Leiden asc@ascleiden.nl www.ascleiden.nl Cover design: Heike Slingerland Photos: Evans Mathias Kautipe Printed by Ipskamp Drukkers, Enschede ISSN 2211-8284 ISBN 978-90-5448-108-9 © University of Groningen / Mzumbe University, 2011 To all those who believe that African countries, organisations and people have a contribution to make in the meaningful adaptation and application of Eurocentric concepts, theories, assumptions, principles, techniques and practices and in anticipation that such contributions will liberate African managers from mismanagement and inefficiencies. Preface This book is not just one of the many introductions to Human Resource Management that are published, year after year, for use in HRM classes. Authors of those introductions face many challenges, such as the need to produce something that is both theoretically sound and practically valuable, or to find a way to integrate discussions on a variety of topics into one comprehensible teaching tool. The author of this book took up those challenges by, on the one hand, closely following the conventions that HRM scholars all over the world adhere to with regards to the demarcation...

Words: 99320 - Pages: 398