*Moshi University College of Cooperatives and Business Studies, Moshi, Tanzania
**Dalian University of Technology, Lingong Road 2 ganjingzi District Dalian, China
***Moshi University College of Cooperatives and Business Studies, Moshi, Tanzania
Online published on 24 October, 2013.
This paper centered on assessing challenges facing entrepreneurs in initiating small businesses particularly single shop retail business in Arusha Municipal. It documents the difficulties entrepreneurs face when starting new small businesses, the possible causes for such difficulties and solutions which will be useful in solving such difficulties. Data were analysized qualitatively and quantitatively. In quantiative analysis, descriptive statistics were used. The study observed that major challenges facing entrepreneurs in initiating small businesses are lack of knowledge of the business, high business running cost, Insufficient capital, poverty and competition. The study recomend that the Government and other stakeholders should build and maintain infrastructures, creat employment opportunities and provide management workshops and seminars on enterpreneurial tendencies, proper record keeping, and financial management practices to the small business owners.
Small Enterprises, Single Retail Shops, Entrepreneurship, Economic Development and poverty