Business Dynamics and Livelihood Outcomes of Micro and Small Enterprises Owners

Abstract

This study is assessedbusiness dynamics and livelihood outcomes of micro and small enterprises owners: evidence from tailoring entities in Moshi Municipality, Tanzania. One hundred and sixty five (165) tailoring businesses operating in Moshi Municipality were selected as a sample size. Adescriptive research design was used with a mixed research approach where both quantitative and qualitative data were collected. Data was collected through self-administered questionnaires for 165 respondents as the sample sizeand 5 key informant interviews using a key informant interview guide. Quantitative data was summarised and being presented in tables, frequencies, mean scores and percentages tables. The study found that, technological factors such as cloth design and online promotion were statistically significant since p < 0.05 influencing owners’ livelihood outcome while advanced tailoring machines and rate of change of technology were not statistically significant on livelihood outcome since p > 0.05. The findings indicated that, four factors such as right amount of capital, affordability, multiple sources of capital and interest rate were statistically significant influencing owners’ livelihood outcome since p < 0.05. Only one factors that is availability of access to capital was found not statistically significant influencing tailoring business owners’ livelihood outcomes since not statistically significant since p > 0.05.Finally the study found that, cheap imports, second hand clothes, innovations and pricing were statistically significant influencing tailoring business owners’ livelihood outcomes since the p < 0.05 while standardised products was not statistically significant influencing livelihood outcomes in study area since p > 0.05.The study concluded that, technological factors, access to finance factors and competitive environment factors (cheap imports, second hand proiducts, inovations and pricing) are significant factors influencing tailoring business owners’ livelihood outcomes in the study area. The study recommends that, since technologial factors such as advanced machines were not statistically signficant in study area due to inability to access it, government through Ministry of Trade in collaboration with SIDO and Microfinances Institutions and other development stakeholders should build capacity to tailoring business owners to access advanced machines so as to improve their business performance which ultimately improves livelihood outcomes.