Determinants Of Market Access for Smes Under the African Growth and Opportunity Act in Kilimanjaro and Arusha Regions Tanzania.

Abstract

The study aimed to investigate determinants of market access for SMEs under the African Growth and Opportunity Act (AGOA) in Kilimanjaro and Arusha regions in Tanzania. Specifically, the study intended to assess the effect of product quality on the market access for SMEs under the AGOA in Tanzania; assess the effects of a country’s business strategies on the market access for SMEs under the AGOA in Tanzania; and examine the effect of the government support on the market access for SMEs under the AGOA in Tanzania. This study utilized a mixed research approach, employing a cross-sectional research design that involved both purposive and stratified sampling techniques. The study focused on the target population, which consisted of owners and managers of SMEs exporting products under the AGOA setting. Data was gathered through a combination of secondary and primary sources, including surveys, interviews, and ocumentary reviews. Prior to data collection, pretesting and piloting were conducted to assess and ensure the validity and reliability of the research instruments. Data were processed and analyzed using descriptive statistics for the respondent’s characteristics while multiple regression was applied for data of objectives independently. The study revealed that product quality in terms of product storage, packages, and labelling had a positive and significant effect on market access for SMEs under the AGOA in Tanzania where storage (p= .003, B=.293), packages (p= .009, B=.285) and Labelling (p= .016, B=.329). Likewise, the study's findings demonstrated a positive and significant impact of the country's business strategy (execution, implementation, monitoring and evaluation) on market access for SMEs under the AGOA. Furthermore, it walearned that, government support produced a significant and positive effect on market access under AGOA. Therefore, it was concluded that product quality, government support, and business strategy predict the market access under AGOA to Tanzanian SMEs. Thus, it was recommended that the government should create an enabling environment to ensure a conducive exportation business function in favour of SMEs)