DO TRADE PROMOTION ORGANIZATIONS CONTRIBUTE TO PROMOTING THE EXPORT PERFORMANCE OF SMALL AND MEDIUM-SIZED ENTERPRISES?
DO TRADE PROMOTION ORGANIZATIONS CONTRIBUTE TO PROMOTING THE EXPORT PERFORMANCE OF SMALL AND MEDIUM-SIZED ENTERPRISES?

Summary/Abstract: Aim: The commercial sector in Tanzania has improved greatly over the last three decades, and smalland medium-sized enterprises (SMEs) have been a prime mover of economic growth, employment, and povertyreduction. Despite this important role, there are different obstacles to accessing global markets for TanzanianSMEs, including limited trade support, poor market access, and regulatory barriers. This paper seeks to establishthe extent to which trade promotion organizations (TPOs) help in surmounting such challenges and enhancingthe export capabilities of SMEs in Dar es Salaam, the economic hub and most populous city in Tanzania.Methods: The study uses a mixed-methods approach and sampled primary data from 400 respondents com-prised of SME representatives and trade stakeholders. Different quantitative techniques were used for the anal-ysis of the effect of TPO interventions with regard to market intelligence, legal advisory services, facilitationof foreign exchange, export-oriented programs, and assistance concerning export procedures, including logisticand multiple linear regression analysis to determine the impact on SME export success. Qualitative perceptionsgive added depth to this study through a rich understanding of experiences and constraints faced by SMEs.Results: The findings confirm that there is a positive and significant association between TPO-provided servicesand SME export performance, underlining the crucial role of tailored support. Conclusions: The priorities thatcome out of this study for policy enhancement include reinforcement of infrastructures of TPOs for actionablemarket insights, availability of foreign exchange services, and the scale-up of training programs on internationaltrade practices. These recommendations are targeted at ensuring the optimization of TPO efforts in facilitatingthe entry of SMEs into global markets for sustainable economic development in Tanzania.

• Details
• Contents