Contribution of training and technical assistance provided by SIDO to the performance of SMEs in Arusha Region
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Date
2016
Authors
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Journal ISSN
Volume Title
Publisher
Mzumbe University
Abstract
Business skills training and technical assistance to SMEs are determinant factors towards the growth of enterprises. In Tanzania, there are enterprises that still register poor performance in terms of growth, profitability and sustainability despite the fact that various institutions provide the required training and technical assistance to entrepreneurs. To find out whether business skills training and the provision of technical assistance is significantly important towards the growth and development of micro enterprises and to determine what inhibits their performance, this study assessed the contribution of training and technical assistance provided by SIDO to micro entrepreneurs, using SMEs. Specifically, it analysed the skills and benefits obtained as well as business profiles of entrepreneurs who received training and technical assistance, and identified constraints limiting the application of obtained entrepreneurship skills to SMEs. A cross sectional study design was employed in obtaining data collected using key informant through interviews and focussed group discussions. The study involved 90 respondents out of which 73 had received a loan; training as well as technical assistance while 17 had received a loan only. Both descriptive and inferential statistics using the Statistical Package for Social Science (SPSS) were used to analyze data. It was found that most training provided by SIDO were on entrepreneurship, business management and provision of technical assistance on marketing, product labeling, and selection of machine and business advice as a whole. Most beneficiaries of the training and loan were married individuals aged between 40-49 years. Training and technical assistance had positive influence on business performance although it had no significant impact on asset accumulation. The study recommends that micro-entrepreneurs should make use of the skills they obtain from institutions like SIDO and seek for adequate financial support to establish their business and that these various supporting institutions should focus on specific skills development of these SMEs which will certainly increase the performance in business.
Description
A dissertation submitted to the School of Business in partial fulfilment of the requirements for award of the Degree of Masters of Business Administration - Corporate Management (MBA) of the Mzumbe University.
Keywords
Business skills-SME's, SIDO-Tanzania, Micro entrepreneurs, Entrepreneurship skills
Citation
APA