12.1 Lack of premises Tanzanian MSMEs face serious problems being able to access proper business premises. A large proportion of informal economy enterprises operate along the roadside.
MSMEs find it very difficult to acquire plots for constructing proper business premises because of bureaucracy, corruption, and the very limited number of surveyed plots (UDEC, 2002). To address this market failure, “improved access to infrastructure by SMEs” is one of the priority sub-programmes targeted for implementation in the SMEDP.
In many communities, there are inadequate facilities and premises for women to expand their businesses. This applies to the expansion of manufacturing businesses, such as those in food processing, and to small producers who are unable to secure proper market stalls to present their products to buyers.
The ILO (2003) report recommended that a collaborative effort be undertaken between the MIT and SIDO41 to identify appropriate land, service it, and build affordable production facilities so that women in growth-potential sectors can set up formal enterprises and expand their operations. This has already been done to some extent for women in food processing (the UNIDO-supported project), and the same model could be used for other sectors (e.g. soap-making, garment-making). The concept of incubators should also be expanded, ensuring that women operators have equal access to incubator space.
12.2 Recommended actions – premises (i) Increase the supply of premises, equipped production facilities, and incubators.
It is recommended that:
• the MIT spearhead an initiative to make production facilities available in sectors in which women are predominant; • fully-equipped incubators be established for key sectors (e.g., textiles, foodprocessing)
to give women access to production premises and appropriate technologies that will enable them to expand their enterprises; • district/local governments designate land where women can build market stalls and gain better access to market opportunities.
• these work spaces be offered to women on an affordable lease basis, thereby reducing the capital costs of growth.
To learn more about this author, visit International Labour Organization's Website.
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