Perceived effectiveness of local government support programs on small and medium-sized enterprise (SME) growth at Ubungo Municipal Council, Tanzania

Mathayo I.  Mboya; Felician Barongo; Twazidina Twaibu

doi:10.51867/ajernet.7.3.102

Authors

Mathayo I. Mboya Mzumbe University, Tanzania
Felician Barongo Mzumbe University, Tanzania
Twazidina Twaibu Mzumbe University, Tanzania https://orcid.org/0009-0009-0468-4263

DOI:

https://doi.org/10.51867/ajernet.7.3.102

Keywords:

Institutional Theory, Local Government Support Programs, Perceived Effectiveness, Resource-Based View, SME Growth, Tanzania, Ubungo Municipal Council

Abstract

The study investigated how local government support programmes affect the growth and development of Small and Medium-sized Enterprises (SMEs) in Ubungo Municipal Council, Tanzania. Specifically, the study evaluated the level of awareness and accessibility of local government support programs, investigated their perceived effectiveness on SME growth, and evaluated the challenges SMEs face in accessing and utilising the programs. The study used the Institutional Theory and the Resource-Based View (RBV), and a case study design was used for the study design. A sample of 237 respondents was selected from a population of 580 using simple random sampling and purposive sampling, giving 230 valid responses. Data from questionnaires were analysed descriptively in SPSS software, and data from semi-structured interviews and documentary review were analysed thematically. The results showed a low level of awareness and accessibility: 55.0% of respondents were not aware of financial support programs, and 70.0% found it difficult to access information about them. A majority did not perceive the programs as effective: 60.0% disagreed that the programs had improved overall business performance, 65.0% that financial support had contributed to growth and expansion, and 55.0% that capacity-building programs had enhanced their skills. Complex application procedures, lack of information about the programs, administrative and bureaucratic delays, and limited financial capacity were the key challenges identified (80.0%, 75.0%, 75.0% and 75.0%, respectively). The study found that the programs can contribute to SME growth but currently lack institutional and operational strength. Ubungo Municipal Council is recommended to strengthen information dissemination, simplify and digitise the application process, align the programs to sector-specific needs, and establish monitoring, evaluation and feedback mechanisms.

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