Local and International Factors Affecting Participation of Tanzanian Small and Medium Enterprises in Market Opportunity Brought by the African Growth and Opportunity Act (AGOA).

Abstract

The study aimed at assessing local and international factors that affect participation of Tanzanian Small and Medium enterprises in market opportunity brought by African Growth and Opportunity Act (AGOA). The study focussed on Tanzania local SMEs engaged in garments and textiles, handicrafts, leather goods, footwear and agro-processing subsectors. The study utilized mixed approach methods and involved a total of 129 respondents. Questionnaire and interview were the main tools for data collection. Information was collected from the owners and marketers of SMEs located in Dar es Salaam, the officials of Ministry of Industry and Trade as well as the Tanzania Ministry of foreign Affairs and East Africa Cooperation. Quantitative data was analysed using SPSS software and qualitative data was examined using MAXQDA software. Findings revealed that both local and international related factors were inhibiting Tanzanian SMEs from engaging in the AGOA market. Such factors have been narrated in this paper and recommendations have been given in order to increase engagement of Tanzanian SMEs in the AGOA market.