Norms of Doing Business
A Guide to Small and Medium Size Entrepreneurs

Tanzania Revenue Authority (TRA) in collaboration with the Zanzibar Revenue Board (ZRB) has decided to introduce seminars on entrepreneurship skills to small and medium taxpayers. The main objective of the seminars is to create awareness among entrepreneurs and future entrepreneurs as prerequisites for starting and managing as sustainable business enterprise.

The publication highlights of the Small and medium size entrepreneurs contribution to the Government efforts towards economic growth and poverty eradication under MKUKUTA, for Mainland Tanzania and MKUZA for Zanzibar. It is therefore important for TRA and ZRB to observe their role as partners in revenue collection and provide training to other stakeholders on how to effectively manage business, increase sales and sustain in business environment.

This publication for small and medium taxpayers has been released at a time when the fourth phase Government of United Republic of Tanzania is determined to improve the livelihood of Tanzanians through various strategies. Chapters include:

(1) The art of entrepreneurship and starting a new business

  • Definition of an entrepreneur

    •
  • The meaning of business

    •
  • Considerations to be made when determining what business one is become engaged in

    •       availability of raw materials one wishes to sell, competitors and the running costs
  • Determining the right business partner and the best business structure

    •       sole proprietorship, partnership, company
  • Business registration

  • Raising capital

  • Appointing the right management for the business

  • Expected business failures or successes

  • Product standards and certification

    • (2) Developing your business with customer focus

  • Who is a customer

  • Customer care philosophy

  • Factors leading to business growth

  • Important points to note on customer care

  • Building a sustainable business

    • (3) Developing a successful business strategy

  • Strategy vis-à-vis business mission and vision

  • Business strategies

  • Evaluation of the business environment

    •       Capacity, Weaknesses, Opportunities, Threats
  • Environmental scanning

    •       Political, Economic, Social, Technological and Legal

    (4) Effective salesmanship

  • Good salesmanship

  • Overcoming competition

  • Norms of Salesmanship

    •       Cost control
  • Procurement and storage of goods, Management of goods

  • Other operating costs

    • (5) Pillars of your business

  • Distribution of dividend

    •       Government dividend and Entrepreneur dividend

    (6) Business records

  • Definition of business records

  • Why business records are needed

  • Types of records

    • (7) Types of taxes and how to calculate them

  • Value Added Tax (VAT) and its calculations

  • Customs duty and Excise duty

    •       Customs duty, Excise duty, Common External Tariffs for East Africa Community and Calculation of tax on imported non-utility vehicles
  • Income tax

    • (8) Conclusion
    It is deemed that prosperity in business will enhance the tax revenues for the Government.


    The preparation and publication of this book was made possible through the co-operation and the assistance of GTz through their tax consultant Mr. Bernd Nuedling which supports TRA both materially and financially. Appreciation also goes to Mr. Paul T. Chizi MD of Customer Support Systems Ltd. for their valuable advice as consultants on the adequacy and quality of the materials in this publication.

    (Free copies are available from Tanzania Revenue Authority offices)