THE National Economic Empowerment Council (NEEC), has said most entrepreneurs prefer to run their businesses informally due to multiple charges and fees.
NEEC’s Executive Secretary, Ms Beng’i Issa in an interview with one local radio station over the weekend said that entrepreneurs find it safe to operate informal businesses in order to avoid harassment that could sometimes lead to closure of business.
“Multiple charges and fees is one of the major factors that discourage business growth,” she said, noting that the government has started to address the bottleneck through the ‘business blueprint’ where a number of taxes and fees have been slashed.
The blueprint provides the government’s main framework for facilitating a holistic review of the business enabling environment in order to improve the business climate in Tanzania.
She said most of the entrepreneurs are unaware that they lose immense opportunities by running business informally. She said for example entrepreneurs fail to access various sources of finances because they operate informal business.
She mentioned also other opportunities denied like access to wide domestic and regional markets, quality standards from Tanzania Bureau of Standards (TBS), barcode from GS1 Tanzania.
She noted that it is through NEEC’s various empowerment programmes which provide education and awareness for entrepreneurs to formalize their businesses.
“We have been conducting empowerment programmes countrywide aimed at creating awareness to SMEs on how to run their businesses profitably,” she said.
She said empowerment programmes are fundamental to entrepreneurs because they provide both business and financial literacy for successful business.
NEEC aims at leading Tanzanians towards a nationally stable economy by creating a conducive business environment and giving Tanzanians the opportunity to participate in the country’s social-economic activities whilst encouraging investment and meaningful economic participation.