Challenges Facing Entrepreneurs in the Scale Bakery Industry in Tanzania:

Abstract

The research examines entrepreneurs' challenges within Tanzania's small-scale bakery sector, specifically focusing on Shirin Bakery Industries. The primary objectives were to identify the main barriers that obstruct growth and success, while the specific objectives involved pinpointing challenges related to market access, evaluating the influence of business networks, and analysing the impact of government policies on the industry. A mixed-methods approach was employed, integrating quantitative and qualitative data collection methods to ensure a thorough analysis. The data were processed using the Statistical Package for Social Sciences (SPSS) version 20.0, with a sample comprising 31 participants. The results indicate notable challenges, including fierce competition, elevated operational costs, and disruptions in the supply chain, all of which adversely affect business performance. Furthermore, challenges associated with distribution channels and marketing strategies emerged as vital for ensuring customer satisfaction and maintaining competitiveness. The study underscores that while the features of marketed products significantly influence purchasing decisions, the effect of production technology on pricing is perceived to be less critical, indicating that pricing strategies are influenced by a complex interaction of market conditions and consumer preferences. Additionally, the research identifies that strategic investments in marketing infrastructure, such as digital marketing and customer relationship management, are crucial for advancing small and medium-sized enterprises (SMEs). The study recommends that addressing these challenges necessitates strategic planning, innovation, and resilience from entrepreneurs, along with supportive measures from policymakers and stakeholders. Also, the study recommends improving distribution channels, implementing effective marketing strategies, and utilizing modern production technologies.