Determinants of Export Behaviour among Small and Medium Firms in Arusha Region

Abstract

This study analyses the determinants export behavior among Small and Medium Enterprises (SMEs) in Arusha region. The cross-sectional design was employed in collection of data from SMEs across Arusha city where 339 entrepreneurs were randomly selected from eight different wards of Arusha city. The information was collected using semi-structured questionnaire for analysis. The logit model was used to estimate the determinants of export behavior. The results revealed that that productivity of the firm, size of the firm, foreign travel experience, foreign language proficiency, past export experience, education level of an entrepreneur are significant factors in influencing the export behavior of the firm. The study recommend that SMEs should utilize the available export guaranteed schemes such as Export processing Zones and Trade fair available in the country, internet adoption for marketing and networking. Similarly, the government should also ensure enabling environment for export market.