The advantages of small enterprises in Tanzania

 Small enterprises are the small scale businesses which deal with utilizing the available 

resources for the purpose of achieving goals such as basic needs and other requirements, also this involve small income range of (5,000,000 to 200,000,000) Tanzania shillings with employees between 5 to 49. Small Business Entrepreneu5rship in Tanzania have seen as a hub in generating income for the majority of urban dwellers with no formal paid employment

In September 2016, Tanzania officially launched the Tanzania Entrepreneurship and 

Competitiveness Centre (TECC) to promote entrepreneurial innovation and competitiveness in the country. TECC aims to promote entrepreneurship and competitiveness in SMEs (Small and Medium Enterprises) in Tanzania through Skills development in entrepreneurship, innovation and competitiveness, Promoting local economic development and providing business intelligence through studies and advisory services

Owning a small business has many advantages as managed and followed the principles of entrepreneurship such Creativity, Hardworking, Competitiveness, High personal skills, Strong cash management, Determination, Passion and High product and market knowledge. But also each entrepreneur must weigh the pros and the cons carefully and decide whether or not the risk is worth the reward

The following are advantages of Small enterprises

It gives freedom and independence.

As a business owner, Entrepreneurs are their own bosses. More importantly, provide the

freedom to make the decisions that are crucial to your own business success. Allow to choose whom to do business with and what work they will do. Also allows deciding what hours to work, as well as what to pay and whether to take vacations. For many entrepreneurs the freedom to control their destiny is enough to outweigh the potential risks.

Small entrepreneurs provide employment to others,

As small enterprise can accommodate to work or provide employment about 5 to 49 chances sothrough businesses occurring in Tanzania may many people have been employed raised their life standard and finally achieved their basic needs and sustaining their goals. Example in our community there people employed to supply and making deliveries of the goods from the small entrepreneurs to their customers example those selling goods such as ice creams, water and bite along the roads such as Ubungo, Buguruni, Karume and Kariakoo

Provide financial gain. 

Through running own business it gives a chance to make more money than if you were employed by someone else so entrepreneurs benefit from their own hard work, under this situation Entrepreneurship offers a greater possibility of achieving significant financial rewards than working for someone else. Owning your own business removes the income restraint that exists in being someone else’s employee. Many Tanzanian entrepreneurs such as Millard Ayo, are inspired by the mega-millionaire entrepreneurs we see today

Provide quick response market changing. 

Being small enterprise provide the ability to react quickly to changing market conditions because of their small size, most small companies are forced to be innovative so as they can compete, and so the only way you can compete is to come up with something creative, new, and different.

Example Tanzania entrepreneurs have been making innovations in different ways such as packaging, delivering, making discounts so as to compete with other new upcoming entrepreneurs.

It gives business control. 

Being a business owner can be extremely rewarding a fully control power of having the courage to take a risk. Success brings with it many advantages also It enables one to be involved in the total operation of the business, from concept to design to creation, from sales to business operations to customer response. This ability to be totally immersed in the business is very satisfying to entrepreneurs who are driven by passion and creativity and possess a vision of what they aim to achieve. This level of involvement allows the business owner to truly create something of their own.

Allow to work more closely with customers to correct the company’s shortcomings.

Being Small enterprise maintains high interaction between customers and entrepreneur but in large companies, there is often a wide gulf between customers and policymakers. Small business owners are often on the front line, and policies can be changed as needed immediately. To keep ahead of the game, you can monitor customer feedback, especially those who have switched from larger companies to your small business and respond to them immediately

It gives prestige. 

It offers the status of being the person in charge. Some entrepreneurs are attracted to the idea of being the boss. In addition, though, there is the prestige and pride of ownership. Under this situation many small entrepreneurs have obtaining high respect through what their doing, example in Tanzania many entrepreneurs such as Mak Juice, Dick sound, Rider and Millard Ayo have been known and given respect in all of the country through their businesses

Provide equity.

Being small enterprise, t gives an individual the opportunity to build equity, which can be kept, 

old, or passed on to the next generation. It’s not uncommon for entrepreneurs to own multiple businesses throughout their life. They establish a company, run it for a while, and later sell it to someone else. The income from this sale can then be used to finance the next venture. If they’re not interested in selling the business, the goal may be to build something that can be passed down to their children to help ensure their financial future, finally the business become upgraded and raised to even medium or large enterprises 

Provide opportunities,

Entrepreneurship creates an opportunity for a person to make a contribution. Most new 

entrepreneurs help the local economy. Especially in Tanzania many small entrepreneurs have been paying taxes and other bills which facilitates much in rising national economy also few through their innovations contribute to society as a whole example provision of information and news through their innovated media like Millard Ayo through Ayo Television

Provide flexibility in the business, 

Small businesses are more flexible and less bound by policies and procedures. The employees are unable to extend better customer service as their hands are tied by company policies. As a result, unsatisfied customers who perceive that their needs are not important to the company leave. Also it gives the ability to develop close relationships with customers are among the key benefits of small businesses. An extremely important advantage to being small is that you are in a better position to provide a more personal service to your customers. Customers trust businesses that offer them sincere personal attention, and they respond well to businesses that know their names and remember details about former transactions. The digital communication revolution has significantly lowered the cost of reaching customers, and this has been a boon to small startups and big businesses alike.

 Not only being small entrepreneur gives advantages but also there is some pros when the business not run well as planned and designed, those pros include Financial risk as the resources needed to start and grow a business can be extensive, and if things do not go well, you may face substantial financial loss finally you will have no guaranteed income. Stress due to worry about competition, employees, bills, equipment breakdowns and customer problems. Time commitment through running a business is extremely time consuming probably has less free time than working for someone else. Undesirable duties being responsible for either doing or overseeing just about everything that needs to be done, and probably have to perform some unpleasant tasks. But also face small entrepreneurs faces different myths which hinder their development such as observed as not thinkers, always being investors, as born not made and also termed as are academic and social; misfits