Challenges facing entrepreneurs in Tanzania

Entrepreneurs in Tanzania face a number of challenges. There is a need to identify them in order to find ways to address them for the benefit of entrepreneurs. A 2012 survey on Tanzanian entrepreneurs identified various challenges facing Tanzanian entrepreneurs. These are as follows:

1. Shortage of capital to start and run businesses;
2. Unreliable market for products and services provided by entrepreneurs;
3. Less demand for goods and services;
4. Low price for the products and services provided by entrepreneurs: This is due to the limited economic capacity, which causes limited cash flow. Thus, the market becomes small;
5. High costs of obtaining loans for business activities;
6. Oppression from the authorities responsible for entrepreneurial activities;
7. Lack of raw materials;
8. Lack of proper and enabling business premises: Hence, entrepreneurs do their businesses in an unfriendly environment;
9. Shortage of experts to produce quality products and services;
10. Lack of sufficient knowledge of doing entrepreneurship effectively; and
11. Lack of relevant information about customers or markets and the products available.

Ways to address the challenges entrepreneurs face in Tanzania

There are challenges that the government has to address and those that the entrepreneur has to address. Some of the challenges the government has to address based on the results of the 2012 survey on Tanzanian entrepreneurs are as follows:

1. The government should improve infrastructure such as electricity, water, roads and bridges, especially in rural areas;
2. It should improve training in the production of various products, such as storing and manufacturing leather products. This means that, if the entrepreneur wants to start a business of manufacturing leather products, the government must have prepared these professionals;
3. Eliminating unnecessary bureaucracy in business-related issues in Tanzania, for instance in registering a business company;
4. Improving tax systems in order to enhance entrepreneurship activities: The tax paid by entrepreneurs seems to be too high. Accordingly, others fail to do business or run bankrupt due to their business loans.

Challenges entrepreneurs should address

The following are some of the challenges that you (as an entrepreneur) have to address:

5. Seeking entrepreneurship knowledge depending on the business you are doing: This knowledge can be obtained from professionals, entrepreneurs, or from other sources such as seminars, workshops, and conferences;
6. Starting a business with a small capital then expand the business as the capital keeps on increasing: This is possible by investing the profits you earn in the business to increase the capital and expand the business;
7. Partnering with people who have money but have no ideas of engaging in entrepreneurial activities;
8. Building credibility by providing quality services and keeping your commitment in order to continue getting customers;
9. Selling a product that is relevant to the time and needs of a particular area;
10. Conducting detailed research on the market before producing or buying and selling products. This will help you avoid making a loss on such products;
11. Creating ways of regularly improving products, services, and business management: This will make customers keep on coming to you and attract others; and
12. Keeping accurate and complete records of your business in order to understand what is going on and to make the right decision.