Abstract:
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 quantitative 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.