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Student's Book Form Five

Table 2.1: Categories of SME in Tanzania
Capital investment in
Category Number of employees
machinery (TShs)
Micro enterprise 1 - 4 Up to 5 million

Small enterprise 5 - 49 Above 5 million to 200 million
FOR ONLINE READING ONLY
Medium enterprise 50 - 99 Above 200 million to 800 million

Large enterprise 100+ Above 800 million

Source: URT. (2003).

NB: In the event of an enterprise falling under more than one category, then the level
of investment will be the deciding factor.

Exercise 2.1
Reflect on the meaning of business unit, then, provide examples of business units
operating in your area and explain their importance to the community.

Ownership structure of business units
Business units are classified into two forms of ownership, that is public and private.
Public ownership consists of businesses owned partially or totally by the government
such as parastatals and corporations. Private ownership consists of businesses that are
owned privately by individuals or groups such as sole proprietorship. Figure 2.1 provides
details on some forms of business units according to ownership, however, in this book
only companies, franchises, joint ventures, and co-operatives forms are described.

Figure 2.1: Ownership forms of business units

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