Factors Contributing to the Failure of Women’ssmall-Scaled Enterprises in Dodoma City Council, Tanzania

Abstract

Aims: This study presents the findings on the Factors Contributing to the Failure of Female Small-scale Enterprises in Dodoma City Council, Tanzania. The study was guided by three specific objectives: to identify structural factors contributing to the failure of women small-scale entrepreneurs, to find out social factors contributing to the failure of women small-scale entrepreneurs and to examine economic factors contributing to the failure of women small-scale entrepreneurs. Methodology: The study adopted a cross-sectional research design where structured questionnaire with open and close-ended questions were used to collect primary information from a sample size of 70 respondents. The researcher used a mixed-research approach, that is, qualitative and quantitative. A qualitative approach was used in collecting respondents’ views during the interviews while the quantitative approach was used to collect information from respondents through questionnaires. Quantitative data analysis was done by using Statistical Product for Social Solution (SPSS) computer program version 25.0. Results: The general findings indicated that government regulations like long license processing and unfavorable tax, scarcity of cash flow at the start-up, and operating and expanding their businesses served as the factors contributing to the failure of women small-scale enterprises in Dodoma City Council. It was further found that high interest rates from banks and other financial institutions affected the growth of enterprises; also, men’s perception that women’s responsibility is to take care of their families instead of working to increase their family income accelerated women to perform business as a part-time activity hence failure in business. Conclusion: the study recommends that women’s small-scaled entrepreneurs must form groups to work together in cooperatives to reduce the business running costs such as tax, rent payable and interest rates from the financial institutions. In addition, the government should enforce laws to eradicate bureaucracy and corruption based on sex, place of origin, favoritism and infidelity from some government officials and credit officers during the compliance of business tax approximation and loan application processing.