SMEs have a crucial role to play because of their potential contributions not only to
employment creation, but also to the improvement of income distribution, poverty
alleviation, rural, social and economic development, and the development of
entrepreneurship. Despite that there is a vast export potential for Tanzanian SMEs to
developed countries; still the impact of trade liberalization towards SMEs
development is not experienced adequately. The study assessed the impact of trade
liberalization towards SMEs development in Morogoro Municipality. A case study
research design was used in this study. The sample size of 84 respondents selected
randomly (i.e. SMEs owners, business consultants and loan officers) was involved.
Data collected were analysed descriptively by using SPSS computer software version
16. The results revealed that 75% of the respondents reported the availability of
difficulties in procuring raw materials for their products from various institutions due
to lower capital and viable marketing strategies, 80% reported the lack of
information technology which would enable them access informations relevant for
their business undertakings and lack of qualified human resources to innovatively
utilize their knowledge and skills for the better running of business. Moreover, 82%
of the respondents reported the absence of social network among local SMEs as with
its presence, social network becomes an opportunity and a means for entrepreneurs to
reduce risks and capital because a social network has a significant relationship with
business adaptability. However, 78% were in opinion to convince and force
inefficient domestic firms to try to improve their productivity in order to enable their
products compete with others while maintaining the required international standards.
Local SMEs still have weak marketing and distribution capacity as they lack
qualified human resources and are vulnerable to external shocks due to global
competition which is beyond their control. The researcher argues for calling holistic
local SMEs support through the creation of enabling environment while building a
foundation for the future productivity and growth for them.