Entrepreneurship Mentoring Programme and Market Performance: Evidence from SIDO Supported Micro and Small Enterprises in Arusha, Tanzania

The overall market performance of Micro and Small Enterprises in Tanzania has been observed to be poor because entrepreneurs are unable to compete, identify opportunity, identify the needs of customers and produce what is needed and failure to retain and satisfy their customers. As a result, the graduating rate of micro to small, medium and large enterprises in Tanzania is absolutely very low. This high failure rate is mainly caused by lack competent entrepreneurs who can compete, explore market environment, identify and exploit business opportunities. The purpose of this study was to establish the association between entrepreneurship mentoring programme and Small Industrial Development Organization (SIDO) supported Micro Small Enterprises’ (MSEs) market performance in Arusha Municipality. The study used cross-sectional research design. Data were collected using survey questionnaire on 230 sampled Small Industrial Development Organization (SIDO) supported MSEs and analysed by using Structural equation model (SEM). The results revealed that there was positive relationship between entrepreneurship mentoring programme and SIDO supported MSEs market performance. The study contributes in providing empirical evidence to body of knowledge and provides an insight to policy makers on the role of entrepreneurship mentoring programme in supporting or facilitating performance of MSEs in the market. The study concluded that overall entrepreneurship mentoring programme has strong positive association with MSEs market performance. The study recommended that SIDO and other institutions offering entrepreneurship training programmes to establish incubation Centres that will incubate MSEs after graduating from entrepreneurship trainings so that they can be well mentored and monitored.