ASSESSMENT OF FACTORS AFFECTING SMALL BUSINESSES’ PERFORMANCE IN TANZANIA

Abstract

In developing countries small businesses are generally regarded as driving force of economic development,

employment creation for poverty reduction. This study assessed internal, external factors affecting small busi

nesses’ performance in Nyamagana District, Mwanza Region in Tanzania. The study used descriptive research

design and data were collected using structured questionnaire. Simple random sampling technique was used

and a sample size of 99 respondents was constituted. The findings revealed that financial, human resources and

managerial problems are the most characterized as internal factors (records management, managerial skills,

Business control system) and external factors (taxation, capital market, physical infrastructure, inflation, and

government control) highly affected small businesses’ performance in Tanzania. The study recommends that

small businesses should be equipped with good and relevant business financial and managerial skills to make

decisions for their business sustainability