Essays on Small Business within the Context of Tanzania Case Study

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The paper "Small Business within the Context of Tanzania" is a perfect example of a business case study. Small businesses have for a long time seen as a driving force for economic development through employment opportunities created and entrepreneurial innovation. Within this context, the efficiency of small businesses is important to concern to governments, especially those that are responsible for delivering economic growth and improving the conditions of citizens. Klapper & Delgado (2007) shares the same sentiments with van Praag & Versloot (2007) by stating that small businesses are an important component in the society and economic sector since it promotes productivity, employment, and innovation, and thus, results in the economic development of a country.

Thus, the aim of this report is to analyze small businesses within the context of Tanzania. Moreover, the paper analyses small businesses, small business opportunities & constraints, which will result in the presentation of some recommendations that will make small businesses viable and sustainable. 2.0 Analysis of Small Businesses BNET Business Dictionary (2009) defines small businesses as “ an organization that is small in relation to the potential market size, managed by its owners, and not part of a larger organization. ..and having fewer than 100 employees” .

The number of employees is an important factor that defines a small business in that in the United States, small business is supposed to employ less than 100 employees, in European Union, the number of employees should be less than 50 while in Australia, the small business employs less than 20 employees. In the case of Tanzania and according to Small and Medium Enterprise Development Policy (2003), they define a small business as that employ between 4 and 50 people.

However, in other instances, capital or revenues defines what small business entails. Different authors have continuously discussed small business involvement in the development of economies; however, the link of small business to economic development can perhaps be credited to Schumpeter (1934), when he suggested that development is rooted in innovation. This means that he perceives that the entrepreneur is a linchpin of economic growth while the role of governments is to support entrepreneurial innovative activities.

References

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Fitzpatrick, M. 2008. Lonely Planet Tanzania: Country Guides. London: Lonely Planet.

Porter, M. 1990. The Competitive Advantage of Nations. New York: Free Press.

IFC. 2006. Sub-Saharan Africa: Increasing Impact, 2006 Regional Report, International Finance Corporation (IFC), Washington, Retrieved November 11, 2009 from http://www.worldbank.org

Klapper, L. & J. Delgado. 2007. Entrepreneurship, View Point Series, Note 316, World Bank, Financial and private Sector development.

Ndulu, B. & C. Mutalemwa. 2002. Tanzania at the Turn of the Century: Background Papers and Statistics, World Bank Country Study. New York: World Bank Publications.

Small Business Administration. 2009. About Us. http://www.sba.gov/aboutsba/index.html (accessed November 11, 2009)

Schumpeter, J. 1934. The Theory of Economic Development. Cambridge: Harvard University

Small and Medium Enterprise Development Policy (2003). Ministry of Industries and Trade, Republic of Tanzania. http://www.tanzania.go.tz (accessed November 11, 2009)

Tanzania Official Website. 2009. Official Online Gateway of the United Republic of Tanzania. http://www.tanzania.go.tz/ (accessed November 11, 2009)

Thanasankit, T. 2003. E-commerce and Cultural Values. New York: Idea Group Publishers.

Utz, R. 2008. Sustaining and Sharing Economic Growth in Tanzania. New York: World Bank Publications.

Van Praag, C. & P. Versloot. 2007. What is the Value of Entrepreneurship? A Review of Recent Research. Small Business Economies, 29(4): 351-382

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