By Azania Post Reporter
TANZANIAN government is mulling to establish the first of its kind business clinics that would help traders who encounters any challenge to seek advice.
Speaking in an exclusive interview, the Deputy Minister for Industry, Trade and Investment Eng Stella Manyanya said at the moment businesses do not have clinics.
Businesses is like a human being it grows or get ill so there is a need to establish clinics for the traders that would be used to heal their challenges, she said.
Deputy Minister Manyanya said she in collaboration with other stakeholders contemplate to have such service in the country in order to have sustainable businesses for the development of Tanzania.
She said even the industries need to have such clinics in order to make them operate fully hence provide more job opportunities and income to the state coffers.
Explaining on motives behind failure or collapse of many businesses, she said it is a result of different things.
Businesses can fail as a result of wars, recessions, high taxation, high interest rates, excessive regulations, poor management decisions, insufficient marketing, inability to compete with other similar businesses, or a lack of interest from the public in the business's offerings, she said.
A study published in 2014 by the Turnaround Management Society in United Kingdom reveals that most crises are caused by the mistakes of top management.
Experts say the most prominent causes of a crisis are that the management continued with a strategy that was no longer working for the company (54.6 percent), and that they lost touch with the market and their customers and did not want to adapt to changes occurring around them (51.6 percent).
Having a clear strategy that is communicated well to all operational areas, one that uses and builds USPs, is desirable for every company but is often not the case.
Incorrect strategic decisions (39.4 percent) are often made because of the lack of a clear strategy, and they can have a significant impact on a company’s financial position in the market.
A quick survey of many SMEs in Tanzania shows that business failure was most likely because of an inability to manage costs.