Abstract:
This study examined the performance of small businesses in Tanzania using human resources-based
approach. A sample of 380 small business owners was surveyed using a structured questionnaire. Multistage sampling technique was used, whereas proportionate stratified sampling was applied which was
followed by random sampling technique. In addition, snowball sampling technique was used to select
cases of interest for in-depth interview. Excel and a Statistical Package for Social Sciences (SPSS) were
used as analytical tools for quantitative data. Content analysis was used to analyse qualitative data
from four case studies developed. Binary logistic regression model was used to estimate the effects
of employees’ commitment, trustfulness and competencies on the performance of small businesses.
The study revealed that employees’ commitment, honesty and competencies had a significant positive
effect on the performance of small businesses. The study recommends that special training programmes
should be designed and implemented for the purpose of imparting competencies and behavioural change
to employees of small businesses.
