INTERNAL PERFORMANCE OF SECTOR-SPECIFIC BUSINESS ASSOCIATIONS OF SMEs IN TANZANIA AND RWANDA: A Case of Selected Business Associations of Food Processors

Freddy Jirabi Gamba

Assistant Lecturer

Institute of Finance Management, Dar es Salaam, Tanzania

CITATION: Gamba, J. F. (2016). Internal Performance of Sector-Specific Business Associations of SME’s in Tanzania and Rwanda: A Case of Selected Business Associations of Food Processors. International Journal of Arts and Entrepreneurship. Vol 5 (3). Pp 1 – 17.

ABSTRACT

Specific sector promotion and prioritization has been practiced through various SMEs development strategies such as industrial cluster, incubation programmes and business associations. Sector-specific business associations tend to deliver focused services to their members. This study examines and compares the performance of four selected sector-specific business associations of SMEs in Tanzania and Rwanda using selected business association’s performance indicators. Target population of the study was SMEs operating in food processing and their associations. Sample size was 145 SMEs. Responses of the subjects were collected through questionnaires. SPSS software is used for analysis. This study concludes that Rwandan business associations perform better than Tanzanian business associations in all internal performance aspects and specifically in terms of effective internal mediation for member interests. There is also an exception that AMAGRO in Tanzania has better internal processes than TAFOPA though behind Rwandan business associations.

Key words: business association, SMEs, food processing, performance, sector-specific

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