RESEARCH PROPOSAL

TITTLE:

EVALUATION OF THE ACCESSIBILITY OF SOCIAL SECURITY BENEFITS TO THE

INFROMAL SECTORS IN TANZANIA.

BY:

DORIS NICHOLAUS

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1.0 INTRODUCTION

According to the Tanzania Social Security Policy of 2003 every individual is faced with
risks and uncertainties when it comes to dependence on income as a means of life
sustenance. To mitigate these risks every human being needs a form of social security
which involves collective risk pooling by the society since individuals cannot warranty
security on their own. Social security can be defined as the protection provided by the
society to its members through public measures against economic and social distress
which may be caused by stoppage or reduction of income arising from contingencies
( Mchomvu et al 2002)

Providing basic social security to the working population is an investment which yields
the country not only poverty reduction but also increase demand and enlarge domestic
markets, healthier, better educated, empowered and more productive workforce as well
as peace and stability in the country(Krzysztof H. et al 2008b). It motivates people to
work towards their own self reliance making them more proactive in contributing to
economic development through different economic activities. However Social Security
benefits in Tanzania and other developing countries covers only workers who are
employed in the formal sectors with employment contracts leaving out the largest part of
the labour force working in the informal sector that are estimated to be more vulnerable
and exposed to social economic risks. The case is built on the fact that some of these
people working in the informal sector have no permanent employment, establishments
or businesses.

According to the Integrated Labour Force Survey report of 2014 the total working
population of Tanzania is estimated at 25.8 million, of whom two third (64.8 %) are
employed in the rural area and 35.2 % are employed in the urban areas. 21.7 percent of
the total employed persons in all sectors (formal, informal and agriculture) are engaged
in the informal sector as their main income generating activities, 66.1 percent is
engaged in the agricultural sector which is largely not covered by the social security as
well. The currently existing Social security benefits provided by the five pension funds
namely National Social security Fund (NSSF), Parastatal Pensions Fund (PPF), Public
Service Pensions Fund (PSPF), Government Employees’ Provident Fund (GEPF), and
the Local Authorities’ Pensions Fund (LAPF) covers only ten percent of the total labour
force leaving out the greater majority of the working population who are involved in the
informal Sector (Ackson & Masabo 2013). The impact of this insufficiency affects mainly
old people, women and children both in the rural and urban areas who as a result have
been subjected to extreme poverty.

This insufficiency is thought to be caused by the limitations in the acts establishing

these pension funds which define scope of coverage for each of the Pension fund in
Tanzania. However the United Republic of the government of Tanzania enacted a new
act in 2012 to amend social security Laws in an effort to extend coverage to the informal
Sector and self employed among other things. Tanzania like many other developing

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countries recognize self-employed, fishermen, drivers, petty traders, food venders,
street vendors, hawkers, undeclared domestic workers, subsistence farmers, casual
labourers, barter traders and all other forms of informal sector workers as vulnerable.
Social protection is essential in poverty reduction as it enables the vulnerable people to
improve and maintain their living standards (Adzawla W. et al 2015). The question
remains to be the accessibility of these social security benefits by the informal sector
given the extension.

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2:0 STATEMENT OF PROBLEM

Social Security system in Tanzania is dominated by the seven mandatory social security
schemes which provide social security services to the people in Tanzania. These Social
Security Schemes are National Social security Fund (NSSF), Parastatal Pensions Fund
(PPF), Public Service Pensions Fund (PSPF), Government Employees’ Provident Fund
(GEPF), Local Authorities’ Pensions Fund (LAPF), National Health Insurance Fund
( NHIF) and the Workers Compensation Fund (WCF). They are characterized by their
tendency of accommodating only workers in the formal places of employment leaving
out the largest portion of the working population engaged in the informal places of work.
However the amended acts of 2015 of NSSF, LAPF, PPF and GEPF in their section 6,
2, 1 and 2 respectively allow the funds to extend coverage to the informal sector
workers including self employed.

It is understood that there are many types of social security benefits needed by the
informal sector ranging from Old Age pension, Invalidity pension, Survivorship pension,
Employment Injury, maternity, medical Care, sickness, Unemployment and Funeral
grant in order to guarantee their security. Nonetheless, the concept of social security
that will be examined in this paper covers all efforts of providing benefits to ensure that
people are protected when they lack work-related income or receive inadequate income
due to sickness, disability and old age. To be more precise it shall evaluate the
accessibility of old age pension, Invalidity and medical care benefits to the informal
sector workers.

Several measures have been undertaken to extend coverage to the informal sector
workers, these includes the amendment of the Social security Laws in 2012 and the
development of the strategy for extension of Social Security coverage (2014-2019) by
the Social Security Regulatory Authority (SSRA) and the amendments of the statutes
establishing the four Social security funds as detailed above. Apparently, the majority of
the informal sector workers remained uncovered and is faced with the challenge of
dealing with contingencies such as sickness, old age, unemployment injuries and
disability as and when they occur. In addition a matter of fact is known that the informal
sector workers are the most vulnerable ones when it comes to risks arising from
conventional contingencies such as loss of employment, disability, old age and death. In
addition circumstances facing the informal sectors workers create frightening challenges
to themselves, their families and the nation at large (Dungumaro E. W 2012). The
author wishes to evaluate the accessibility of these social security services to the
informal sectors workers by assessing their enrolment to the Social security schemes
since the reforms. To be more precise the researcher will assess the number of informal
sector workers enrolled in the existing pension funds for the period of five years starting
from 2013 to 2017 and the factors affecting their enrolment.

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In addition circumstances facing the informal sectors workers create frightening
challenges to themselves, their families and the nation at large (Dungumaro E. W 2012)

3.0 OBJECTIVES OF THE STUDY

3.1. Main Objective

This study aims at evaluating the accessibility of social security benefits by the informal
sectors in Tanzania.

3.2. Specific Objectives

The study has the following specific objectives:

3.2.1 To assess the provision of social security benefits to the informal sector workers
by the current Social Security Funds

3.2.2 To examine the enrolment of informal sector workers to the Pension funds for the
past five years (2013-20017).

3.2.3 To determine the factors affecting the enrolment of informal sectors workers to the
pension funds.

4.0. RESEARCH QUESTIONS

4.1. Main Research Questions

How accessible are the Social security benefits to the informal sector workers?

4.2. Subsidiary Research Questions

4.2.1 Are there Social security benefits designed to suit the social needs of the informal
sector workers?

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4.2.2 What is the performance in enrolling the informal sector workers to the Social
Security Funds?

4.2.3 What are the factors affecting their enrolment?

5.0.CONCEPTUAL FRAMEWORK AND CONCEPTUAL MODEL

5.1. CONCEPTUAL FRAMEWORK

Much of the technological knowledge required by small and medium enterprises is

incremental and could often be acquired through what (Lall, 1985) described as
“elementary learning”. Innovation systems emphasize the importance of interactive
learning, acquired through flow of knowledge and information across enterprises
together with the institutions and organizations that support them.

The critical issue and implementation should be observed in to the process of bringing
new products, processes and forms of organizations into economic use (Nelson and
Winter, 1982; Lundvall, 1988). The nature of interaction is however, complex and
defined by the nature of knowledge exchange, and established priority by the rules, the
forces of history (path-dependence), and the capacity for action or inaction on the part
of the actors involved (Oyeyinka, 2004).

With regard to firm interaction with other actors, two sources to technological innovation,
namely, endogenous and exogenous, are applicable. Endogenous source means that
innovation starts from within the enterprise and exogenous source suggests that the
source of innovation is external to the enterprise (Douglas Harper2010)

For an endogenous source, an enterprise is a learning organization because it

facilitates innovation to start from within it. Such enterprise is characterized by a certain
level of technical and organizational knowledge base. Through the knowledge it
accumulates, an enterprise continually transforms its knowledge assets to operate at
higher orders of operations (Malerba, 1992; Lundvall;et al2002).

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Within an enterprise, there are different modes oflearning, andthewidely known
arelearning-by-doing and learning-by-studying through Research &Development.
Learning does not take place in a vacuum and enterprises do not innovate in isolation
they rather innovate with the help from an exogenous source.External actors with which
enterprises interact are crucial to learning bythe entrepreneurs. (Koichi Abe 2014)

From this source, an enterprise sets a wide range of knowledge of sources that may be
within its local and often outside the national boundary (Lundvall, 1988; Von Hippel,
1988). These sources are generally institutions and organizations,customers, sub-
contractors, and suppliers from within or outside the national boundaries.

Many founders of Small and Medium Enterprises (SMEs) are dependent in terms of
conceptual overview andthus practically some of them fail in upgrading technologies
because of the said impediment. Training, standard, financial support, policy and
political coordination as well act as constraint to some extent. If external sources are
relied upon, the successful integration of new ideas and techniques, demand an internal
capability to assimilate external knowledge (Malecki, 1991).

This conceptualframework demonstrates how the knowledge of technological innovation

can be acquired. It indicates that innovation within a firm is an interactive learning
process following a flow of knowledge between firms through knowledge exchange, or a
dependent knowledge, which starts from within a firm itself and the best example is
wood furnitureenterprises as still need to beinnovative,thisframeworkintended to
provideguidance. It indicates that founders for instancecan learn both from their
experiences or acquire from external sources of knowledge, however the same may
face constraintsthroughout the learning process or on the progress.

5.2. CONCEPTUAL MODEL

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Fig.1.0. SMALL AND MEDIUM ENTERPRISES (SMES) ROLE IN DEFENDING
POVERTY
SMEs Manifest

1 2

Ability of
Enterprises and Nature of SMEs
Value of
Products

4 3

Effectiveness of
Production of
SMEs

KEY:

1. Small and Medium Enterprises (SMEs) manifestproducts and products manifest

income
2. Nature of different small and medium enterprises influence ability of enterprises
of later reveal its important to income
3. The effectiveness of production of small and medium enterprises is what
evaluates the merit of products and products value is what the growth of
enterprises.
4. Ability of enterprises is what determines the value and value of products is what
manifest the need of industries.

6.0 RESEARCH METHODOLOGY

6.1 Introduction
The methodology part describes the general approach, description of instruments of data collection,
study design and methods, population of the study, sample frame, data analysis, for undertaking the
research study. In line with objectives of the assignment, the study used both qualitative and
quantitative approach. The quantitative research generated tendencies on various indicators on the

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situation related to social security and existing gaps in the informal sector by different categories of
informal sector respondents at sector level considered to be the lowest administrative level for this
study.
The qualitative research approach shared the theoretical assumptions of the interpretative paradigm,
which is based on the notion that social reality is created and sustained through the subjective
experience of people involved in communication (Morgan, 1980). Qualitative concern attempts to
accurately describe, decode, and interpret the meanings of phenomena occurring in their normal
social contexts.

6.2 study Design

Pursuing on how to extend social security coverage within the informal sector in Rwanda, the study
focused on cross sectional to be conducted in the informal sector under three categories identified
by the National institute of statistics that is; (Mines, Manufacturing and non-manufacturing). The
purpose of study was to highlight issues and problems of the insufficiency of social security for the
informal sector on the family and children, the challenges and proposed policy action for extending
pension schemes to the informal sector.

The study employed a descriptive and correlation research designs. On the other hand, correlation
research design helped to determine whether and to what degree a relationship exists between
two or more variables. Descriptive design concerns itself with the describing the situation as it is
(Khotari 2004), and hence, aimed at providing a description that is as factual and as accurate as
possible.

This study employs a research design of a mixed methodology meaning that the
researcher expects to combine aspects of the qualitative and quantitative paradigms in
methodology.This methodology takes advantage of reducing, the limitations that are
likely to be derived from a single methodological design (Bryman, 1996).

In Qualitative stage, researcher intends to make a comprehensive and extensive

literature review, analyzing some of theories, models, and techniques in order to

9
identify the strengths and weaknesses of each writer’s model and techniques and will
be summarized especially those regarding SMEs in Ilala’s industries. Twenty (20)
interviews intended to be conducted and cases will be analyzed through cross-case
analysis. This will be done to identify the critical success factors that drive the
approached SME and to investigate the implementation of current SMEs in the
industrial sectors.

The quantitative approach will adopt measurement framework that makes use of a
structured questionnaires that will be developed from collecting quantitative data. The
objectives will be to assess the level of importance of factors and indicators in the
enterprises framework.

6.2.2 Study Population and Sample

The study target the following segments of the informal sector workers; self-employed,
casual, sub-contract, temporary and part-time workers and micro-entrepreneurs which
in really sense has large number of workers. Due to time constrain and limited
resources the study will select 20 participants from each segment who will respond to
the research questionnaire. In total 100 members of the informal sector are expected to
participate in this research.

Also, Key informant interview will be administered to the current pension fund
managers. The aim of this is to incorporate the perception of the fund managers on the
informal sectors enrolment to the pension funds, to understand the challenges and the
required policy intervention if need be.

6.3 Methods of Data Collection

To study the accessibility and availability of social security benefits to the informal
sector, both primary and secondary data will be collected. Primary source will be
gathered through questionnaires and key informant interviews; while secondary data will
be obtained from the literature both published and unpublished reports, books, journals,
articles.

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6.4 Instruments of data Collection
Questionnaire
The evaluation of the accessibility of social security benefits to the informal sector in
Tanzania particularly in Arusha region will take a diverse approach of both quantitative
and qualitative methods. A general questionnaire will be developed and be dispensed to
participants in the informal sector workers according to the above mentioned segments.
The questionnaire will gather information in response to the objectives of this study
which includes determining the availability of social security benefits that suits the
informal sector workers, assessing the awareness of the informal sectors workers of the
available benefits and their enrolment, and determining the challenges affecting their
enrolment to the pension funds.

Key Informants’ Interviews

In order to obtain the perception of the existing pension fund managers, the study will
identify a number of resource persons from the pension funds. The study will select one
person among the management team who is the most experienced and expert in
managing the pension funds membership enrollment and database .

6.5Data to be collected

Attention will be drawn to get information about:

1. .Available pension schemes that suit the informal sector workers
2. Awareness of the informal sector workers
3. Enrolment of the informal sector workers to the pension fund
4. Challenges affecting the enrolment
5. Measures to overcome the challenges
6. Recommendations on the way forward

6.6 Data Processing

The data will be processed using SPSS package. It will involve:

(i) Developing coding structure
(ii) Preparation of the spreadsheet

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 (iii) Coding the questionnaires
(iv) Data entry
(v) Data cleaning

6.7Data Analysis

A specific quantitative data analysis will be done using Stata, statistical data analysis software.
Qualitative data analysis is the range of processes and procedures whereby the researchers move
from the qualitative data that have been collected into some form of explanation, understanding or
interpretation of the people and situations they are investigating.

7.0 LITERATURE REVIEW

ILO in 2002 defined informal sector as follows:

“Units engaged in the production of goods and services with the primary objective of
generating employment and incomes to the persons concerned. It consists of
household
unincorporated enterprises that are market and non-market producers of goods as well
asmarket producers of services.”

These enterprises are operated by own account workers, which may employ unpaid
family workers as well as occasional/seasonally-hired workers. These businesses may
also be owned and operated by employers, which may employ less than 10 employees
on a continuous basis. These are people we see everyday and many of us buy goods
from them and avail their services. Edit according towhat is present in Tanzania-
They are the vendors from whom we buy candies or cigarettes, the carpenter nearby
whom we call to make minor repairs in our house, the woman from whom we buy
cooked food for our lunch and snacks, the boys who watch over our cars or help us get
a taxi, the rural workers who remove weeds in our farm, or help us harvest our produce,
and the very young girls and boys who appeal to us to buy their sampaguita garlands.
They are also the families that set up stalls to sell second
hand cell phones and repair them; stall sellers of newspapers, brokers of illegal housing
built on legal land; municipal fishermen; money changers; scavengers; families that
produce clothing goods at home for sale in the town market, the department store, or for
export; fixers, fortune

12
tellers, tricycle drivers; producers of car mufflers; producers of silver rings and bracelets;
producers and peddlers of candles, religious images, miracles and “agimat”; “kubrador
ng jueteng, karera, atbp”; The list is endless, there are 1001 jobs they have created for
themselves providing goods and services to members of other households as well as to
government institutions, corporations and non-profit institutions.

In further delineating the definition of the informal sector, cases that are excluded from the
definition are:
1. Corporations
2. Quasi-corporations
3. Household helpers
4. Units engaged in professional services
5. Units with ten or more employees
6. Units owned by a household member who is also employed in a corporation, quasicorporation,
government or non-profit institution
In agriculture the following additional exclusions were added:
7. Corporate farms
8. Farms managed by cooperatives
9. Farms with an area of three hectares or more
10. Units engaged in Commercial livestock raising
11. Units engaged in Commercial fishing
Using the above definition of the informal sector, studies were then conducted in order to find out
how much of the Philippine workforce are from the informal sector. As the following Table shows,
employment statistics from the October 2000 round of the Labor Force Survey (LFS) and the 2000
Census of Establishments (CE) show that 70 to 78 percent of total employment did not come from
establishments or government institutions.
Estimates

The challenges remain for provision of social security on various forms for the informal sector in
order to prevent shocks that could potentially affect employees in the informal sector during their life
time and expose them to extreme povertyIn Rwanda, specific evidence exists about bottlenecks that
people in the informal sector face in having social security coverage and the challenges in providing
social security services by informal employers. This has had huge effects on the vulnerability of
households and employees working in the informal sector.
8

Small Medium Enterprises (SMEs) are important economic driving force in many
countries. Previous researches show that efforts taken by various parties and
governments of different countries have helped to improve and transform SMEs to the
competitive engagement on the global economy. In some countries like Malaysia,
there are different models or approaches adopted and implemented by various parties.
However, competitiveness of SME remains an issue of concern. The model is based on

13
the findings that the sustainable growth of SMEs is held back by four major challenges
such as ICT, marketing, finance and skill of knowledge. (International Journal of
Industrial Engagement 2014).

The writer in above paragraph, confined on the factors backward the SMEs as
mentioned, He has mentioned ICT as one of the major constrains. It could not be proper
for him to confine himself in negative perception as far as ICT on the other gains
positive simplification. It is in this study researcher observes that poor management as
is one of the constrain to enterprises of which the writer did not concept.

Eugene and Ann (1999) built their home and farm in Huron, Ontario, Canada from the
ground up using their own labour and help from friends and neighbours and during a trip
to Great Britain where they gained experience, they decided to use their design talents
and commitment to hard work and next in their report contend that‘we have always
been a fair trade company, producing wool yarn that is as natural and organic as
possible’. Further they state that another significant component of Small and Medium
Enterprise (SMEs) is business plan to achieve a profitable market entry strategy into
global markets. Much of that, they confer that given a small size and limited operational
capacity as an SME (Small and Medium Enterprise) it is difficult to attract foreign
distributors.

Eugene and Ann’sconcept is useful and lesson to Small and Medium

Enterprisesstakeholders that designing talents and commitment to hard work is very
essential in successful on business. However it can be negative to portray completely
that given a small size and limited operational capacity as an SME (small to medium
enterprise) facilitate difficult to attract foreign distributors. For instance how many
foreigners offer their assistance to SME (Small and Medium Enterprisewhich are small
in Tanzania? The writers did not demarcate the smallness of business they were
discussed about. They are many.

The first argumentof (Eugeneet al1999)isan identity that being small enterprises is not a
problem rather than experience. In this study observation show that foreigners are not
being interfered to invest because of financial crisis rather than factors like education

14
status of members, members experience of particularly managers and Legal status and
formality of business.

Raabe (2005),the philosopher of Small Business Management notes how an ethical is a

pyramid scheme to 'investors' business; most people inevitably lose everything they
invested because of un ethical. He narrates one of event when he was still an
undergraduate student that he was astonished to discover that many of my classmates
in a business ethics course were not at all interested in learning how to be virtuous or
ethical. These were the business, commerce, and economics students for whom the
business ethics course was merely a degree requirement. In elaborating the
fundamentality of Ethics in business he said thatthe Philosophy of Business considers
the fundamental principles that underlie the formation and operation of a business
enterprise; the nature and purpose of a business such as primarily property or a social
institution, its role in society and the moral obligations that pertain to it.

Arnold et al(2008)in the book ‘Sweatshops and Respect for Persons’ contends that
ethics should be observed to applicants or conveners of Small and Medium Enterprises.
The writers have not informed the readers as to what ethics entails in meaning. Instead
they insist to draw an important distinction between the philosophy of business and
business philosophy. In study the researcher observesthat ethics is a moral principle
that governs a person's behavior or the conductin a certain activities. Contravening
ethics is not necessarily to contravene the written law, rather it can be doing anything
unfairly and not attracted many habitants. Ethics is part and parcel of business
enterprises management thus the researcher has bit investigates some of writers.

Innovation capabilities are one of the keys to achieving competitiveness of firms

whether small or large.Diyame (2010). With markets and technology changing fast, and
good ideas quickly copied, there is continual pressure to devise new and better
products, processes and service.

Deighan(2008) contends that“Small firms often appear to be unaware of their legal

obligations, do not realize the dangers of poor practice, do not think about the benefits

15
of good health and safety practice and have insufficient resource to devote to health
and safety” The writers gap is found under the limitation on the legal limitation as an
impediment to enterprises. His work can be essential to those readers tied and
centralized much on legal limitation however; there are so many other factors. Is like his
fellow propagating that, the SME is described as a hard to reach population particularly
in terms of health and safety research (Vassie and Oliver, 2000).The latter tied his idea
to the health sectors only. How are about other sectors like art works in small medium
enterprises which still lack realm of being well established.

8.0 RATIONALE FOR THE STUDY

The study is essential as it will really leave readers with analytical concept in relation to
Small and Medium sized enterprises (SMEs) in the new era of economy. The study
findings expected to give out an overview on the role of Small and Medium sized
enterprises (SMEs) in Tanzania at large, however major attention is drawn to Ilala
Municipality. The new observation will be compared to some developed countries where
enterprises havealready played a critical role in stabilizing economy and their coleration
to be coupled to Ilala Municipality. In developed countries like Australia, SMEs
represent 97 percent of all private sector businesses and provide 49 percent of all
private sector employment (Australian Bureau of StatisticsReport 2002)

Investment in social protection for informal workers, especially in rural areas will be a
necessary and primary component of ensuring inclusive economic growth as a sustainable
way to break the cycle of poverty. (Ateke H. et al 2016)

The study aimed to investigate and highlight the risks faced by the working poor in the
informal economy, and particularly the risks faced by women and children by
investigating how common contingencies affect informal workers in particular, how
systemic shocks affect informal workers in particular, and how the nature of informal
work creates shocks and risks specific to informal workers and the impacts on family
and children. Some of the main social security schemes looked at includes; health
insurance, maternity benefits, informal responses and extended family support for

16
copying with shocks. In the short and medium term, the study aimed at identifying,
proposing and promoting innovative policy approaches to providing social security to
informal workers, extending the coverage of existing schemes or developing new
schemes. For the long term, it seeks to promote a new approach to social security that
provides protection for systemic shocks and common contingencies the informal
workers, and that integrates informal workers into social insurance schemes.

In the short and medium term, the study aimed at identifying, proposing and promoting innovative
policy approaches to providing social security to informal workers, extending the coverage of
existing schemes or developing new schemes. For the long term, it seeks to promote a new approach
to social security that provides protection for systemic shocks and common contingencies the
informal workers, and that integrates informal workers into social insurance schemes.
9

Investigation in this study shows that since the late 1980s, to date many institutions use
to represent enterprises through tabled and calculated financial data which always are
reported without having information from field survey something which is not enough to
satisfy the performance measurement in the new economy because of the increasing
complexity of organizations and the markets in which companies compete (Kennerley
and Neely 2002)

Based on the previous studies, the researcher has good reason to investigate further
and deep to get hidden factors linked poor management to slow growth of Small and
Medium Enterprises within Ilala Municipality in Tanzania.

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9.0 SCHEDULE OF ACTIVITIES AND BUDGET

Fig 1.3 The Schedule of Activities for Undertaking the Study

SN ACTIVITY START END REMARKS

1 Preparation Phase 1st April 2014 1st June 2014 Questionnaires and
other logistics
2 Data Collection 10th June 2014 25th June 2014 Field Work (Survey
and PRAs)
3 Data Processing 30th June 2014 15th July 2014 Coding, Data Entry
and Data Cleaning
4 Data Analysis and Report Writing 20th July 2014 20th August 2014 Report writing
5 Production of Report Draft 21st August 2014 31st August 2014
6 Presentation of the Draft Report 1st September 1st September To academic staff
2014 2014
7 Addressing Emerging Issues 2nd September 6th September Finalization of Report
2014 2014
8 Submission or Final Report 7th September End of the project
2014

Fig 1.4.Budget for Project Implementation of Research Activities

SN ITEM UNIT COST TOTAL COST REMARKS
(TSH) (TSHS)

1 Questionnaire Production 100,000 Duplicating, Numbering

and Packaging
2 Field Work
Allowances for Principal 50,000 ˣ 15 750,000 Supervising Data
Investigator (PI) Collection
Allowances – Research Carrying out surveys and
Assistants (4 RAs) PRAs
Transport (Fuel) – Within City 45,000 ˣ 15 ˣ 4 2,700,000 For Transport in the field
Centre (petrol 50 Lts) 2200 ˣ 50 110,000
3 Data Processing
Allowance for PI (Data Entry 20,000 ˣ 15 300,000 Keying and Cleaning data
and Cleaning Supervision)
4 Data Analysis
Allowances for PI (30 days) 20,000 ˣ 30 600,000 Analysis and Writing

Production of Research Report 6 copies ˣ 240,000 Printing, Photocopying and

40,000 Binding Report
5 Presentation of Research
Findings (Draft)
Refreshments for Members 20,000 ˣ 20 400,000 Compensating for time
attending PRA discussions members
6 Incidentals
Incidentals (10%) 520,000 For any mishap
TOTAL COST 5,720,000

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APPENDIX 1

21
QUESTIONNAIRE FOR A STUDYON EVALUTING THE GROWTH AND
MANAGEMENT OF SMALL AND MEDIUM ENTERPRISES IN TANZANIA: A CASE
STUDY OF FOUR SMEs LOCATED IN ILALA MUNICIPALITY

Your questionnaire responses will be strictly confidential and data from this research will
be reported in the dissertation anonymously.

SECTION A: RESPONDENT’S PARTICULARS

NAME ______________________________________________________
SEX__________
YARD___________________________
AGE
20–25 ❑
25–35 ❑
35---50 ❑
50---70 ❑
MARITAL STATUS
Single ❑ Married ❑ Widowed ❑ Divorced ❑ Separated ❑
ENTERPRISE/ORGANIZATION____________________________________________
POSISTION____________________________________________________________

SECTION B: QUESTIONS

1. What does your enterprise dealing with?

a. Information and communication services

b. Management of Companies and Enterprises

c. Hand Crafts Services
d. Food Services and Catering
e. Other…………………………………………………….
2. How many employees engaged in your enterprise?

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 a. 4------10
b. 11-----14
c. 15-------19
d. 20--------25
e. Other…………………………………………………….

3.What is your level of education?

a. Primary
b. Secondary
c. University
d. No formal education
e. Other ………………………………….

4. How is a market of your products?

a. Poor
b. Good
c. Moderate
d. Very good
e. Other………………………………………………………….

5. How is your professional experience?

a. 0-----------4 years
b. 5------------9 years
c. 10-----------14 years
d. 15-------------20 years
e. Other……………………………………………………………….
6.What is your role in the Firm?
a. Administration
b. Finance
c. Management
d. Technician
e. Other…………………………………………..
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7. How much your enterprises has grown since its registered?
a. Very likely
b. Quite likely
c. Neither likely or not likely
d. Not very likely
e. Other………………………………….
8. How do you get your raw materials?
a. Locally
b. Within the region
c. Within the country
d. Internationlly
e. Other………………………………………….
9. What are scientific instruments/tools are you using in production?
a. Technological objects
b. Local objects
c. Both technological and local objects
d. Other…………………………………………….
10. How many times have you participating in training concerning your business?
a. Within six month
b. Once per year
c. Twice per year
d. Not at all
e. Other………………………………………………….
11. Which categories of challenge affect your business?
a. Technological aspect
b. Education Aspect
c. Source of Capital
d. Environmental
e. Other……………………………………………

12. At which level do you sell your products?

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 a. Domestic level
b. Regional Level
c. National level
d. International level
e. Other…………………………………………………………..
13. What is your ambitious?
a. Increased Knowledge and Skills
b. Gain of capital in business
c. Having international recognition
d. Become large industry
e. Other.................................................................................

INTERVIEW GUIDE

25
 1. What do you know about small and medium enterprises in Tanzania?
2. What are benefits of having small and medium enterprises in Ilala Municipality?
3. What can we say about product’s quality from small and medium enterprises in
Ilala?
4. What can you say about price of products produced by small and medium
enterprises in Tanzania?
5. What to be done to increase the status of small and medium enterprises in Ilala?
6. What types of products do you know produced by small and medium
enterprises?
7. What should be done to increase production in our small and medium
enterprises?
8. Can you explain how small and medium enterprises has reduced the problem of
un employment?
9. What do you say about management in general at small and medium enterprises
within Ilala municipality?
10. What factors to be considered during assessing new employees?
11. Have you ever heard about small and medium enterprises in developed
countries?
12. What can you say about market of small and medium enterprises in Tanzania at
general?
13. Which group of people is much benefited from small and medium enterprises?
Why?
14. How about working condition of employees?
15. Any opinion about small and medium enterprises in Ilala areas concerning
formation, production, management, market and education of workers?

By definition, most economic activities that are classi-

26
fied as informal are not captured by national accounts and
official statistics. One exception is informal employment,
which can typically be measured or proxied using questions
from household survey data on affiliation to social security,
the mandated benefits workers receive, or the size of the
firms they work for (in terms of the number of employees),
or using a combination of those variables

27