Abstract:
This study investigates the factors influencing the growth of Micro and Small Enterprises (MSEs) in the metal works sector of Arusha City, Tanzania. Adopting a mixed-methods approach, both quantitative data through structured questionnaires and qualitative insights from semi-structured interviews were collected from a sample of 200 MSE owners and key informants. The research employed a case study design to examine the operational conditions of MSEs, focusing on demographic characteristics, access to credit, and business experience. Findings revealed that 50% of MSEs primarily rely on personal savings for financing, highlighting significant barriers to accessing formal credit. The analysis utilized descriptive and inferential statistical techniques, including regression analysis, indicating a significant positive relationship between access to formal credit and MSE growth (r = 0.52, p < 0.01). Moreover, demographic insights showed that the majority of MSE owners are aged between 31 to 50 years, with limited educational backgrounds, potentially hindering the adoption of advanced technologies. The study concludes that improving access to credit and enhancing financial literacy are critical for fostering MSE growth. Recommendations include developing tailored financial products and implementing training programs to improve the skills of business owners and workers. These interventions are essential for promoting sustainable growth in the metal works sector and contributing to the overall economic development of Arusha City.
