Abstract:
Rural-based micro-enterprises have recently gained broad attention in developing countries where most citizens live in rural
areas, and their livelihoods depend on entrepreneurial undertakings. The nexus between rural enterprises and export trade is
increasingly becoming vital as most rural inhabitants engage in handicrafts. This study assesses the contribution of Business
Development Services (BDS) to rural-based handcraft Micro Enterprises (MEs) in export markets. Data were collected from 92
owners of handicrafts MEs in Ololosokwan and Sukenya, Ngorongoro District Arusha, Tanzania. Multivariate logistic regression
analysis reveals that 18.9 to 74.5% of the variation of handicrafts MEs’ participation in export markets was explained by the variation in BDS access. It was also found that technical support, entrepreneurship and leadership training programs have a significant relationship with rural-based MEs’ participation in export markets. It is concluded that BDS contributes largely to the
participation of rural-based MEs in export markets. The study recommendations include adopting a supportive institutional and
policy framework for the frequent provision of BDS at low costs and specific MEs’ needs and developing business networking
platforms that will provide important export market information. This study contributes to advances in the body of literature
on effective BDS strategies in the handicraft industry. More importantly, it brings new insights into how BDS is linked with
export market participation among Maasai rural-based handcraft MEs in an emerging nation.
