IDEAS home Printed from https://ideas.repec.org/a/aaz/sbir01/v5y2021i2pe358.html
   My bibliography  Save this article

Utilization of non-financial business support services to aid development of Micro, Small and Medium Enterprises (MSMEs) in Tanzania

Author

Listed:

Abstract

A variety of factors inhibit the development of MSMEs in African countries, which in turn affects entrepreneurship, job creation and economic transformation. Using cross-sectional data from 250 MSMEs in the Dar es Salaam region, we find in most of the examined variables the positive relationship between the use of non-financial business support services (BDS) and the development of MSMEs in the Dar es Salaam region. However, contrary to expectations, building business linkages and mentoring programs recorded negative relationships with MSMEs development. This is related to restricted capacities stemming from the size of MSMEs compared to large companies and deficiencies in the content of mentoring programs. In addition, the discrepancy between BDS demand and supply as well as the low adoption rate of BDS are associated with the inadequate adaptation of BDS to the needs of MSMEs, high service costs and a lack of qualified service providers. Thus, we argue that the provision of BDS to MSMEs should be demand-driven and that institutions should build on the pre-eminent characteristics of MSMEs when designing business support programs. On the other hand, Government efforts to nurture the development of MSMEs through policies and programs should extend to promoting business linkages between MSMEs and large enterprises.

Suggested Citation

  • Lwesya, Francis & Swebe Mwakalobo, Adam Beni & Mbukwa, Justine, 2021. "Utilization of non-financial business support services to aid development of Micro, Small and Medium Enterprises (MSMEs) in Tanzania," Small Business International Review, Asociación Española de Contabilidad y Administración de Empresas - AECA, vol. 5(2), pages 358-358, July.
    • Handle: RePEc:aaz:sbir01:v:5:y:2021:i:2:p:e358
    DOI: 10.26784/sbir.v5i2.358
    as

    Download full text from publisher

    File URL: https://doi.org/10.26784/sbir.v5i2.358
    Download Restriction: no
    File URL: https://sbir.upct.es/index.php/sbir/article/view/358/162
    Download Restriction: no
    File URL: https://libkey.io/10.26784/sbir.v5i2.358?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    References listed on IDEAS

    as
    1. Caniels, M.C.J. & Romijn, H.A., 2005. "What Works, and Why, in Business Services Provision for SMEs: Insights from evolutionary theory," Working Papers 05.03, Eindhoven Center for Innovation Studies.
    2. Gary S. Becker, 1975. "Human Capital: A Theoretical and Empirical Analysis, with Special Reference to Education, Second Edition," NBER Books, National Bureau of Economic Research, Inc, number beck75-1, March.
    Full references (including those not matched with items on IDEAS)

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Daniel Heriel Shayo & Emmanuel J Munishi & Pastory Dickson, 2022. "Role of presidential issued identity cards (pids) in alleviating the street vendor’s business challenges in Dar es Salaam City," International Journal of Research in Business and Social Science (2147-4478), Center for the Strategic Studies in Business and Finance, vol. 11(5), pages 138-148, July.

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Lim, Sonya Seongyeon & Wang, Heli, 2007. "The effect of financial hedging on the incentives for corporate diversification: The role of stakeholder firm-specific investments," Journal of Economic Behavior & Organization, Elsevier, vol. 62(4), pages 640-656, April.
    2. Santos, João & Borges, Afonso S. & Domingos, Tiago, 2021. "Exploring the links between total factor productivity and energy efficiency: Portugal, 1960–2014," Energy Economics, Elsevier, vol. 101(C).
    3. Kristinn Hermannsson & Patrizio Lecca, 2016. "Human Capital in Economic Development: From Labour Productivity to Macroeconomic Impact," Economic Papers, The Economic Society of Australia, vol. 35(1), pages 24-36, March.
    4. Dimitris Pavlopoulos & Ruud Muffels & Jeroen K. Vermunt, 2009. "Training and Low‐pay Mobility: The Case of the UK and the Netherlands," LABOUR, CEIS, vol. 23(s1), pages 37-59, March.
    5. Hélène, Buchholzer & Marjolaine, Frésard & Christelle, Le Grand & Le Floc'h, Pascal, 2022. "Vulnerability and spatial competition: The case of fisheries and offshore wind projects," Ecological Economics, Elsevier, vol. 197(C).
    6. Rosholm, Michael & Nielsen, Helena Skyt & Dabalen, Andrew, 2007. "Evaluation of training in African enterprises," Journal of Development Economics, Elsevier, vol. 84(1), pages 310-329, September.
    7. Soumyananda Dinda, 2020. "A circular economy approach for sustainable economic development," International Journal of Green Economics, Inderscience Enterprises Ltd, vol. 14(2), pages 174-189.
    8. Asch, Beth J & Warner, John T, 2001. "A Theory of Compensation and Personnel Policy in Hierarchical Organizations with Application to the United States Military," Journal of Labor Economics, University of Chicago Press, vol. 19(3), pages 523-562, July.
    9. Mac-Clure, Oscar, 2012. "Chile's new middle classes: a cohort analysis," Revista CEPAL, Naciones Unidas Comisión Económica para América Latina y el Caribe (CEPAL), December.
    10. Sabatini, Fabio, 2006. "Social Capital and Labour Productivity in Italy," Knowledge, Technology, Human Capital Working Papers 12090, Fondazione Eni Enrico Mattei (FEEM).
    11. Xavier Jaravel & Neviana Petkova & Alex Bell, 2018. "Team-Specific Capital and Innovation," American Economic Review, American Economic Association, vol. 108(4-5), pages 1034-1073, April.
    12. Johannes Schwarze, 1990. "Ausbildung und Einkommen: eine vergleichende Humankapitalanalyse für beide deutsche Staaten," Discussion Papers of DIW Berlin 12, DIW Berlin, German Institute for Economic Research.
    13. Sana Mumtaz, 2022. "Should practical usefulness be considered for theory building in HRD? Traditional versus pragmatism approach," Quality & Quantity: International Journal of Methodology, Springer, vol. 56(3), pages 1245-1259, June.
    14. Vassil, Kristjan & Eamets, Raul & Mõtsmees, Pille, 2014. "Socio-demographic Model of Gender Gap in Expected and Actual Wages in Estonia," IZA Discussion Papers 8604, Institute of Labor Economics (IZA).
    15. Filomena, Mattia & Giorgetti, Isabella & Picchio, Matteo, 2022. "Off to a Bad Start: Youth Nonemployment and Labor Market Outcomes Later in Life," IZA Discussion Papers 15366, Institute of Labor Economics (IZA).
    16. Nijkamp, P. & Stough, R. & Sahin, M., 2009. "Impact of social and human capital on business performance of migrant entrepreneurs - a comparative dutch-us study," Serie Research Memoranda 0017, VU University Amsterdam, Faculty of Economics, Business Administration and Econometrics.
    17. Lutz Hendricks, 2001. "Growth, Death, and Taxes," Review of Economic Dynamics, Elsevier for the Society for Economic Dynamics, vol. 4(1), pages 26-57, January.
    18. Zafar Mueen Nasir & Nasir Iqbal, 2009. "Employers Size Wage Differential: Does Investment in Human Capital Matter?," The Pakistan Development Review, Pakistan Institute of Development Economics, vol. 48(4), pages 509-521.
    19. Isbister, John, 1992. "The Lending Performance Of Community Development Credit Unions," Research Reports 140050, University of California, Davis, Center for Cooperatives.
    20. Merz, Joachim & Böhm, Paul & Burgert, Derik, 2005. "Timing, Fragmentation of Work and Income Inequality - An Earnings Treatment Effects Approach," MPRA Paper 5972, University Library of Munich, Germany.

    More about this item

    Keywords

    MSME development; non-financial support services (BDS); business development services; weighted average index (WAI);
    All these keywords.

    JEL classification:

    • L25 - Industrial Organization - - Firm Objectives, Organization, and Behavior - - - Firm Performance
    • L26 - Industrial Organization - - Firm Objectives, Organization, and Behavior - - - Entrepreneurship
    • M13 - Business Administration and Business Economics; Marketing; Accounting; Personnel Economics - - Business Administration - - - New Firms; Startups

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:aaz:sbir01:v:5:y:2021:i:2:p:e358. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Carlos Martinez (email available below). General contact details of provider: https://edirc.repec.org/data/aecaaea.html .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.