Critical Analysis of the Impact of Small and Medium-Sized Enterprises in the Promotion of Such Business in the Tanzanian Economy
Critically discuss the impact of SME’s policy in the promotion of such business in the economy and clearly indicate the major hurdles of the policy it had encountered since its inception and suggest the way forwarD.
he Policy on SME’s development was created by the Government in conjunction with other stakeholders to create a conducive macroeconomic environment that will allow SMEs to emerge, survive and grow the reason being SME’s contribute third of the GDP of Tanzania economy. The recent Policy was introduced in 2002.
Since its inception the policy had the following impact on the promotion of business economy;
There have been establishment of a mechanism for handling SME business disputes as well as introduction of tax incentives for SMEs and training and sensitization SMEs on property rights for example through public talks and through BRELA day i.e. Business registration and licencing Authority whereby the officials gave speech on the property rights.
To a great extent there’s an improvement to infrastructural facilities which provide a basic support for the growth of the sector likewise there is development in teaching entrepreneurship through education and training and fostering pro-active entrepreneurship attitude within the civil service and local government service.
There have been introduction of measures that help in reducing the risks and transaction costs of lending to increase competition in the financial sector and strengthen the capabilities to serve small and medium enterprises. The government will provide seed capital and other financial resources for SMEs. Local government authorities will allocate and develop areas for use of SMEs.
In the non-financial services sector, the Government has been able to encourage and support market development and thus has facilitated greater demand and supply of BDS. The government has supported the establishment and strengthening of extension services for the SMEs.
The Government has
he Policy on SME’s development was created by the Government in conjunction with other stakeholders to create a conducive macroeconomic environment that will allow SMEs to emerge, survive and grow the reason being SME’s contribute third of the GDP of Tanzania economy. The recent Policy was introduced in 2002.
Since its inception the policy had the following impact on the promotion of business economy;
There have been establishment of a mechanism for handling SME business disputes as well as introduction of tax incentives for SMEs and training and sensitization SMEs on property rights for example through public talks and through BRELA day i.e. Business registration and licencing Authority whereby the officials gave speech on the property rights.
To a great extent there’s an improvement to infrastructural facilities which provide a basic support for the growth of the sector likewise there is development in teaching entrepreneurship through education and training and fostering pro-active entrepreneurship attitude within the civil service and local government service.
There have been introduction of measures that help in reducing the risks and transaction costs of lending to increase competition in the financial sector and strengthen the capabilities to serve small and medium enterprises. The government will provide seed capital and other financial resources for SMEs. Local government authorities will allocate and develop areas for use of SMEs.
In the non-financial services sector, the Government has been able to encourage and support market development and thus has facilitated greater demand and supply of BDS. The government has supported the establishment and strengthening of extension services for the SMEs.
The Government has