Failure of Smes in Tanzania

The UK quarrying company Tarmac has over 12500 employees at present. The operations function is key to overall company’s performance. It needs the support of finance managers, zone managers and HR managers. A finance manager delivers financial and management accounts to contribute the strategic decision-making process by forecasting financial performance. A zone manager manages operational performance. They meet and improve targets for cost, quality, delivery, safety and business ethics shown in key performance indicators (KPIs). Lastly a HR manager ensures business managers apply HR policies and procedures.

(Business Management: a contemporary compilation). The Growing interest in the area of Entrepreneurship has developed in changing roles of small businesses. Small Entrepreneurship has great potential in developing countries. Due to Statistics and analysis of several countries, it is shown that Small Industries have grown faster than large industries. Large Industries lost jobs as Small Industries created workplaces. The Focus is on Small Industries which led to the main source of employment in the country.

The purpose of this paper is to explain the importance of staffing within an organization. Every organization has a need for some sort of staffing process no matter what size or type of business they are. “Staffing is a critical organizational function concerned with the acquisition, deployment, and retention of the organization’s workforce.” (Heneman, Judge, & Kammeyer-Mueller, 2014)

Training: Training is considered as the most important elements that staff need to increase their productivities at work. So instead of using too much money paying for tickets, hotels and workshops, organizations can just reduce training budget in IT by implementing

Firstly, every business establishment has leaders who play a major role in, managing productive staffs. The managers must have effective communication skills; for staffs to understand their roles within the business, what their daily duties are. Instruction must be given as to when deadline must be implemented. Adequate tools and equipment 's must be provided, for example within the retail industry merchandise products must be replenished on the shop floor and on no occasion should it be out of stock as this will prevail the input of staffs, therefore the employees will call in sick rather than go into workplace, that has no stocks to sell to customers. If staffs do not apprehend the role of their jobs and responsibilities, these might bring on stress and inadequate of performing

Based on a survey of 139 banks in 16 countries, Rocha et al (2011) investigated the status of financing to SMEs in the Middle East and North Africa (MENA). The researcher found out that in spite of a good and viable environment which prompted the growth of the segment, the SME sector in these region remains largely untapped (Schiffer and Weder, 2011). Government assistance through low interest rate, public banks, guarantee schemes and other forms of subsidized financing play a key role in the development of SME.

To prosper, small enterprises need comfortable business environment and regulations, adequate basic infrastructure services, access to short and long-term financing at reasonable rates, equity and venture capital, advisory support, and knowledge about market opportunities (Lukács, 2005). They typically suffer from weak entrepreneurial skills as well as deficiencies in accounting, production management, and business planning. As small enterprises develop, they increasingly need connectivity to export markets and the world economy (Lukács, 2005).

In the context of building industry, starting a business is to know what staffs need to run the business efficiently and smoothly. As the business increases, the needs and requirements of the staff becomes more pressing. According to Cooke and Williams (2013), the substantiation, laws, cost and regulations are related to employing staff which makes small business operator hesitate.

Ministry of Enterprise Development, Industrial Policy, and Investment Promotion 2002,National strategy For small and Medium Enterprise Sector Development In Sri Lanka

Critically assess whether Human Resource Management is any different in SME 's than large organisations?

This case study was prepared by A. Bailey and J.Verity, Cranfield School of Management. It is intended as a basis for class

Nonetheless, managers must work hard toward the implementation of business strategies which will enable the organization to progress into the next phase. For instance, although the organization may have limited resources (i.e., operational budget and staffing) these should not be perceived as limiting factors impacting the organization's ability to move into the growth phase. Management will need to develop a plan that allows for adequate staffing and do so by thoroughly assessing the essential needs of the organization at that specific time. Some options to consider could include part-time versus full-time staff, as well as determining which operations would be incorporated in-house or outsourced. It is not uncommon for organizations in this phase to hire within their own social circles as a means of meeting budgetary constraints (Leung, 2003).

Governments around the world have put in place policies to encourage the growth of local small and medium enterprises (SMEs) as they can help directly alleviate poverty by increasing income levels and creating jobs (ESCAP, 2012). At the same time, the global economy has become increasingly depended on the Information and communications technology (ICT) for market access and information. SMEs need to have access to and use of ICT to engage in the regional and global economic business networks. If SMEs cannot access to ICT, many of the SMEs are set to lose out on opportunities to integrate into the global supply chain, get potential businesses and increase their productivity or efficiency.

Some very interesting questions come to mind and we will be discussing them at length. The questions are: Why did Monique Mandy fail to launch a new innovation in Tanzania? What effect did country and market conditions have on this? What is the importance of social capital and networks in entrepreneurship? Did Monique learn out of this failure? What would she do or avoid next time? Without discussing and address these questions, this paper would not have properly analyzed the Adesemi Failure as it were.

If efforts are put towards promoting SMEs, particularly, the likes that are concerned with the informal sector, achievement of development that is sustainable is inevitable. Most developing as well as developed countries depend on the small and micro enterprises in the provision of employment. Even though a number of small and medium-sized enterprises are not part of the formal sector that is