Factors Affecting the Sustainability of Small Businesses in the Kariakoo Market in Dares Salaam, Tanzania

Abstract

In Tanzania, despite the crucial role that small businesses play in the economy, their sustainability is often threatened by several factors, which remain inadequately understood to date. This study aimed to assess the factors affecting the sustainability of small businesses (SMEs) in Dar es Salaam, Tanzania. The study employed survey approach, where both secondary and primary data were collected from existing and closed small enterprises. The area of the study was selected based on the concentration and size of small enterprises. The sample size consisted of 85 small enterprises, including 80 existing and 5 closed businesses. A systematic random sampling procedure was used to select the respondents to be included in the study. The collected data was analyzed using appropriate descriptive statistics techniques. The empirical study produced key external and internal influences that appeared to distress the sustainability of small enterprises. Management and political factors emerged as the primary external influences, while financial factors revealed dual internal and external impacts. The findings underscore the critical role of addressing management and financial challenges to ensure the longevity of small enterprises.