Page 64 - Business_Studies_F5

Student's Book Form Five
Exercise 4.1
1. What is the primary objective of
the Tanzania Trade Development
Authority (TanTrade), and how does
it contribute to the development
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of medium-sized businesses in
Tanzania?
2. Explain the overarching challenges
and opportunities that medium-sized
businesses face in Tanzania when
conducting their activities.
3. Imagine you are managing a tech
company encountering obstacles of
regulatory compliance and access
to funding. Which government
agencies can help you in addressing
the problems of regulatory compliance
and access to funds?
Policies promoting businesses in
Tanzania
Policies are guidelines, regulations, and
measures established by governments or
organisations to guide decision-making
to achieve specific objectives in various
sectors. In the context of promoting business
enterprises, policies are developed to create
an enabling environment to facilitate the
growth and sustainability of businesses.
This is because policies can unlock the full
potential of entrepreneurship and enterprise
development by aligning regulatory
frameworks, incentives, and support
programs with the needs and aspirations
of businesses.
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Business Studies FORM 5.indd 55
The importance of policies in
promoting business enterprises
The following are the importance of
policies in promoting business enterprises:
Creating an enabling environment:
Policies provide a framework of rules and
regulations that support business activities
by protecting property rights, ensuring legal
certainty, and promoting fair competition.
To foster a conducive business environment
for enterprises to thrive, policies encourage
investment, entrepreneurship, and
innovation by establishing a transparent
and predictable operating environment.
Addressing market failures: Policies
address market failures and distortions
that hinder efficient allocation of resources
and business development. Policies may
target externalities such as information
asymmetry, pollution, or monopolistic
practices to promote market efficiency and
competition which will eventually ensure a
level playing field for businesses of all sizes.
Facilitating access to resources: Policies
aim to improve access to crucial resources
that are essential for business growth and
competitiveness. Such resources include
finance, technology, infrastructure, and
labour. Through targeted interventions,
policies support business enterprises
in overcoming barriers to entry and
expansion, enabling them to access the
needed resources to innovate, invest, and
create value.
Stimulating economic growth and
development: Policies promote business
enterprises by encouraging investment, job
Business Studies for Advanced Secondary Schools
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