Product Quality and Business Strategy Impact on Market Access for Tanzanian SMEs Under the African Growth and Opportunity Act

The topic of market access through favored products has drawn a lot of critical attention, particularly for Less Developed Countries (LDC). However, although the African Growth and Opportunity Act (AGOA) presents substantial market opportunities, Small and Medium Enterprises (SMEs) in Sub-Saharan African countries (SSA), including Tanzania, have not fully capitalized on these prospects. With an emphasis on exporters in Arusha and Kilimanjaro, this study examined the impact of business strategies and product quality on market access for SMEs in Tanzania under AGOA. Using a cross-sectional research design and a mixed research approach, the study selected respondents using both stratified and purposive sampling procedures. The study employed various techniques in collecting data, including surveys, interviews, and documentary reviews. The analysis utilized both inferential and descriptive statistics, with multiple regression employed to evaluate the relationship between dependent and independent variables. The results of the study showed that market access for SMEs in Tanzania covered by the AGOA was positively and significantly impacted by product quality in terms of product storage, packaging, labeling, and business strategy implementation. Thus, it was determined that the most important factors in predicting Tanzanian SMEs' market access under AGOA are product quality and business strategy. Therefore, it was suggested that the government should establish an enabling environment to guarantee a favorable exporting business function for SMEs operating under AGOA.