Contribution of business training to the growth of women as per SME Policy at Morogoro municipality in Tanzania

Abstract

The economy of a nation depends on Small and Medium enterprises (SME) but they have been reported having high rates of failures with many of enterprises dying at an infant stage. One of the reasons for such failure is lack of Business training. Therefore, this study aimed at investigating the contribution of Business Training on the Growth of Women entrepreneurs as per SME Policy in Morogoro Municipality. Specific objectives were to: assess the type of training offered by SIDO to women entrepreneurs; find out the business conducted by women entrepreneurs in the study area; examine the effectiveness of business training on the growth of women entrepreneurs; and to examine the challenges encountered by women entrepreneurs when running their business. The study employed both qualitative and quantitative approaches. The study targeted SMEs run by Women entrepreneurs in Morogoro Municipality Three wards of Kihonda, Mafiga and Saba Saba were selected. A sample of 25 respondents was used where 22 were sampled using simple random sampling while 1 District Officer, 1 NMB Bank Loan Officer and 1 SIDO District Manager were sampled purposively. Data were collected using questionnaires, interviews and documentary review. The study established challenges facing women entrepreneurs that include: lack of managerial skills, lack of capital and lack of experience. The study concluded that the government bodies, Donors, NGOs and SMEs stakeholders have great responsibility to make sure that they provide necessary support to the women entrepreneurs engaged in SMEs for them to grow and do their business smoothly and contribute effectively to the country’s economy. In addition, mechanisms for tackling the challenges encountered by women entrepreneurs have to be found which can include: provision affordable rate loans; and frequent training and seminars. The study recommends that the government has to ensure effective implementation of the SME policy to facilitate the growth of women entrepreneurs who are very significant part for the community and country’s development at large.