Examination of SMES’ influence on the creation of employment opportunities in Tanzania: A case of Tanga

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Mzumbe University
This study examined SMEs influence on creation of employment opportunities. Data of the study were collected from 215 respondents using structured questionnaire. Both qualitative and quantitative methods for data analysis were used. The study revealed that, improvement in market infrastructures, networking and communication; timely business promotion and advertisement; availability of credit facilities; effective application of one‟s technical skills, competence and experience in managing businesses; availability and application of technology does support business operation thus provide a room for creation of employment opportunities. Likewise, the firms‟ management capacity to identify, establish and implement workable business strategies; provision of adequate business capital; motivated and committed to business purposes and goals; and adherence to business governing rules and regulation are the crucial aspects that were affirmed to support firms/business operations. Based on the econometric analysis results, the study revealed, firm location, firms‟ years in business operation, market availability for goods/services offered, effective firm strategies, accessibility of the financial services, technological application in the operationalization of business, and demand for goods and/or services have the significant influence to creation of employment opportunities. In the period of 4 to 18 years of firms operation, findings revealed a number of employment opportunities created ranges to three employment chances (20.93 percent), two employment chances (44.65 percent), and one employment chance (26.98 percent). Likewise, these chances inclined to the following employment categories; permanent, family, apprentice and temporary. The study recommend that strategies towards creation of employment opportunities should focus on improving provision of financial services; market infrastructures, networking and communication facilities; promoting application of appropriate technical skills, expertise and experience; application of technology in business operation; and provision of reliable and adequate electricity and water supply services. All in all however, a similar study should be undertaken in other areas to ascertain the extent of applicability of the findings of this study.
A dissertation submitted in partial fulfillment of the requirements for award of the Degree of Master of Science Economics Policy and Planning (MSc EPP) of Mzumbe University
Employment opportunities, SMEs, Business operation