Performance of Small Businesses in Tanzania: Human Resources-Based View

Abstract

This study examined the performance of small businesses in Tanzania using human resources-based approach. A sample of 380 small business owners was surveyed using a structured questionnaire. Multi-stage sampling technique was used, whereas proportionate stratified sampling was applied which was followed by random sampling technique. In addition, snowball sampling technique was used to select cases of interest for in-depth interview. Excel and a Statistical Package for Social Sciences (SPSS) were used as analytical tools for quantitative data. Content analysis was used to analyse qualitative data from four case studies developed. Binary logistic regression model was used to estimate the effects of employees’ commitment, trustfulness and competencies on the performance of small businesses. The study revealed that employees’ commitment, honesty and competencies had a significant positive effect on the performance of small businesses. The study recommends that special training programmes should be designed and implemented for the purpose of imparting competencies and behavioural change to employees of small businesses.