Improving Competitiveness for SMEs to Harness Available Trade and Investment Opportunities: The Case of Tanzania
DOI:
https://doi.org/10.61538/huria.v11i0.499Abstract
Less developed countries’ capability to face global economic challenges depends so much on the stage of development of their small and medium enterprises (SMEs). Nevertheless, SMEs competitiveness in Tanzania and other developing countries face a number of encumbrances hindering their success in both local and international markets. This paper undertakes a thorough review of the factors affecting SMEs competitiveness in Tanzania. Factors affecting SMEs competitiveness include: the remaining investment climate impediments, inadequate innovation, poor infrastructure and high transactions cost. There are also hindrances related with information asymmetry, shortages and/or insufficient supply of factors of production and the poor economies of scale and scope. Based on the findings, policy recommendations for the improvement of SMEs competitiveness are made. Among others: the government should continue instituting environment conducive for businesses, promote the use of research and development outputs, emphasise business agglomerations and sharing of capacities, and continually propagate entrepreneurial attitudes and skills.References
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