The Strategies to Support and Build up Modern SMEs: Case Study in Tanzania

摘要

Small and medium sized enterprises (SMEs) in Africa are weak because of small local markets,unemployed regional integration and difficult business condition.Many firms stay small and informal and use simple technology that does not require great use of national infrastructure.Their smallness also protects them from legal proceedings (since they have few assets to seize on bankruptcy) so they can be more flexible in uncertain business conditions.The recent effort by the government to ratify economic reform to modernize and improve Tanzania's economy was put in place to encourage foreign direct investment and to stimulate the economy.Some of the measures taken include tax relief and privatization of public institutions.This is a step in the direction in an attempt to increase economic activity and create jobs.Nonetheless,in order for Tanzania to reach its full potential for economic and social development,the country's small and medium-scale enterprises (SMEs) must be focused attentions on.All over the world,there is growing evidence that SMEs play an important role in the role in the economic development of any country,SMEs provide the majority of new jobs and produce much of the creativity and innovation that fuels economic progress,are one of the principal driving forces in economic development.The paper focuses on the specific strategies that Tanzanian government introduces from the perspective of the core competencies that can help small and medium-scale enterprises to innovate and hence bring about thrive and self grow for the longer-term at the same time becoming the modern one.