The Roles of the Small and Medium Enterprises along the Forest-Based Value Chain in Ruvuma Region, Tanzania

Abstract

Small and Medium Enterprises (SMEs) contribute to the nation in both an economic and social sphere. However, the information on the roles which SMEs play in the forest-based value chains is inadequate Therefore, the objective of this study was to assess the roles that Small and Medium Enterprises play along forest-based value chains in Ruvuma region. A cross-sectional research design was adopted where two districts (Songea urban and rural) were purposively chosen due to their forest value chain potentials and the availability of Small and Medium Enterprises. 120 enterprises/entrepreneurs were randomly selected and used in this study. Interviews and questionnaires were used to obtain primary data on entrepreneur demographic and socio-economic characteristics and the different roles they play along the value chain which included the market information, product pricing, business promotion, product packaging and value addition activities. Descriptive analysis was performed on the collected data where Microsoft Excel software was employed. The findings revealed that mobile phones were the most used means of obtaining and transmitting market information and business promotion, product pricing is done according to the entrepreneurs’ consideration, baskets were the major means of product packaging and value addition activities were carried out. The study concluded that the Small and Medium Enterprises do in fact play various roles along the forest-based value chain. These findings can be used as a basis for further research and knowledge provision to the entrepreneurs