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Qn 1.

Identify and differentiate the type of business in


Tanzania

The different type of business that exist in Tanzania is that

1. Sole propetorship/ sole trading: this is type of business


owned by the person himself where loss and profit is upon to
he/she, this type of business is very easily to start because it
doesn’t need a lot of investment and procedures .It easily to
direct the company because there is no a lot of people who is
employed.

Sole propetorship have the following characteristic, they are willing to


accept sole responsibility for the firm performance, success or failure
of the firm is on the hand of him or her. Have to work long hours, the
owner have to work long hours in order to succeed his/her goal.
Another characteristic is must have a strong leadership skills and also
communication

Sole propetorship have advantages such as because the business is


owned by one, also all earnings are also going to him or her because
an investment of capital is for one. Another advantage is that the
information of sole propetorship is easy because legal requirement to
establish is minimal compare to other business. Taxes contributed by
sole propetorship it considered with the person income in the business.

Sole propetorship have disadvantages; because it owned by only one


person also all profit is enjoys by her but when it became losses there
is one can share this rather than him or her. Another disadvantage is
that there is lack of continuity if the owner is disabled or dies also
business collapse.

2. Partnership: This is the business managed by two or more


person under the partnership deed/agreement. the owners of the
business are called partners, there are several types of
partnership such as general partnership; this is type of
partnership where all partners are unlimited liability, another is
limited partnership: the partners have limited liability.

Advantages of partnership, in partnership there is addition fund this is


because there is presence of more than one owner so is providing fund
for business, also any losses are absorbed by more than one owner,
there is double taxation.
Partnership have disadvantage, the business is owned by two or more
person so one can disagree about how the business should be run this
can delayed decision making, another disadvantage all profit earned
by partnership must be shared

3. Franchising business: Is the business where one person is


authorized to do the business under this copy right or patent or
trade mark of another, types of franchises are distributorships
firm: is a firm allowed to sell a product produce by a
manufacture, another is chain-style-business firm: a firm that is
allowed to use the trade name of a company and followed
guidelines related to the price and sale of product. Last is
manufacturing arrangement these is firm which allow can allow
some one to manufacture a product by using formulas or
methods provided by another company.

Advantages of franchising: provide management with guidance in


production and management method that have to track record of
success. Another advantage is by using recognizing name can great
increase the demand for their product. Also financial support by
providing supports in case of purchasing materials and supplies on
franchisor on credit

Franchising have disadvantage such as have to pay fees and share


profit with franchisor, another disadvantages is less control because of
guidelines set by franchisor.

4. Small business: This is business done under small capital


particular under group. The small business can be define under
two criteria such as the size of the business means total capital
invested, total investment in plant and machinery, the number of
person employed also turnover of the business. Another criterion
is qualitative in qualitative we look the ownership the business,
nature of the management also geographical area of operation.

Small business has the following advantages: it creates employment in


small scale business there prefers to use lab our intensive because the
industries provide self employment to artisans and technically
qualifified person, another is advantages is small business require less
capital per unit of output and provide quick return. It helps to improve
standard of living in suburban and rural areas.
Qn 2. Describe the roles played by any type of businesses in
Tanzania

The roles played of the business in Tanzania is that example small


business

- it contribute employment to the citizens whether individual or


group because small scale industries use labour intensive
techquniques by providing employment to artisans, technically
qualified persons and profession.

- Promote development of people better life and rising standard


of living and people income in rural areas through dispersal of
small industries in rural areas and semi urban areas rather than
urban areas, by introduction of the industries in urban it help
also in to reduce the problem of congestion and slum in cities.

- It help to promote tradition family skills by making people to be


creativity example handicrafts, this it help to facilitate the
growth of entrepreneurs and self-employed professional in small
town and villages.

- Small scale industries it contribute more in government by


reduce pressure in raw material in some of large industries by
providing raw materials and also when they exports some of
goods it earn valuable foreign exchange through exports.

- Its help to avoid the scarcity of goods in market because small


industries contribute more than half product on the markets.

- In social advantages, because more are employed in some small


scale it reduces concentration in income and wealth so it
provides a time to participate in various social services.
Qn 3. Overall, what challenges do the business identified in
question 1 above face? And how can entrepreneur deal with
those challenges?

The challenges facing entrepreneur in dealing with business in


Tanzania is that

-Lack of enough capital; any starting business it needs capital to


managing it well but the problem of capital is challenge face the
entrepreneur and when the go for getting assistance in financial
institution example banks the interest for loan is very high, also the
security for a loan is problem.

-Lack of enough training employee/ outdated technology most of


business they do not change according to the production environment
they depend on old techquniques and equipment do to limited capital
so it tend the production to be low.

-Permanent place for doing their business, they have no permanent


place for doing the business and these create the distbustence to
customers to where they can get goods and services which leads to
low market and low sells to the businesses.

-Problem of raw material include scarcity of raw materials for


production, production equipment such as machines these is
challenges also faces businesses

-Poor planning: the planning is differ with business and this is because
of the absence of education and experiences personal more are
depend in consultant to plan for their businesses

-Low market for the product this is because of strategic used in


penetration to the market and also competition in market,
-Poor government policy: the government has no proper policy to
support business development example the tax paid by local business
are the same as investors.

How can entrepreneur deal with those challenges?

-In case of capital, some entrepreneurs have to join together to form


some organization example SACCOSS which can bring all together it
can help to contribute their capital and to loaned to every
entrepreneur also is helps in case they want to go any financial
institutions for increasing SACCOSS capital.

-To provide employees to vocation training school to learn more in


various field in production procedures, also to be updated with
technology changes this can lead to more production.

-Government can provide permanent areas for the production and for
the market to the entrepreneurs to be developed.

-To prepare enough market to both inside and outside the country by
making quality product this can be challenged with the competitors.

-Good policy to make the entrepreneurs penetrate to market by


introduces rules to guide them with the investors.
Qn 4.What factors will you take into consideration when
locating the business?

In allocate the business the following factors must be considered

Population
-The number of people in given place can determine the business
growth, as entrepreneur first you have to look a place where the
market of the product can be easily moved, if there is inequity
population also the business does not gone well.

Infrastructures
- A place where roads, railways and other communication is are well
developed in that area the business will be well developed, this is due
to that the movement from one place to another will be easily which
can simplify the work to be easily.

Raw material
-presence of raw material is among the factors which consider when
we allocate the business, the place where there is no scarcity of low
materials can lead to high production and also it can reduce cost of
production and that lead to high profit.

Security
-The place were security is good for doing a business is place where
the business can developed well compare with the place where
security is poor.

Presence of social services


-the place social services like postal office, banks, and other financial
institution both promote developed of the business growth, this is
because all service example you need to make payment through banks
or some customers want to make payment through bank it can easily.
Qn 5. Enumerate the general characteristics of any business

The following are the characteristic of the business like

Sole proprietors:

- have to accept sole responsibility of the firm, the success or


failure of the firm is due to him/her so must work hard in order to
successful

- Must be willing to work long hours: must be work more than


typical work day, sole proprietors have no time wait for gift
he/she must work all the time.

- Must have strong organization skills, also leadership skills and


communication skills in order the business to operate well.

- Successful sole proprietors have previous experience; this


experience gives them understanding competition and the wants
and needs of their customer.