Effects of business development service providers’ resources endowment on service delivery to performance of small and medium enterprises in Northern Tanzania

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Adonis & Abbey Publishers


The resource endowment of business development service providers (BDSPs) is crucial for the provision of services to small and medium enterprises (SMEs). This paper assessed BDS providers’ resource endowment and the extent to which it enhances service delivery to SMEs in Arusha City and Moshi Municipality. A total of 65 BDS providers and 254 SMEs were sampled for the study. A cross-sectional design was used for this study. Respondents were sampled using purposive and simple random sampling. Data were collected through a questionnaire-based survey, focus group discussions, observation and documentary reviews. Content analysis was used to analyse qualitative data, while quantitative data were analysed using the Statistical Package for the Social Sciences (SPSS). The results indicated that BDS providers hardly have sufficient resource endowment to deliver their BDS to SMEs in the form of human capital, physical resources, networking ability and information systems. However, the level of resource endowment differs among BDS providers. Similarly, the surveyed BDS providers were not performing to their full potential in service delivery due to a number of challenges they were encountering. Among the reported challenges facing BDS providers were SMEs’ slow rate of adopting new knowledge and technology and insufficient financial and human resources and geographical location. The study concludes that resources such as human capital, physical capital, networking abilities, and information systems available among BDS providers contribute to building their capabilities to deliver services to SMEs. The study recommends that BDS providers capitalize on their resources to be in a better position to provide competitive services to their clients.


African Journal of Innovation and Entrepreneurship (AJIE) Pp 19-60


Business Technical Advisors, Development Service Providers, Resource Ownership, Capabilities, Enterprises