Tanzanian female entrepreneurship: strategy for sustainability and growth

Abstract

It is believed that SMEs employ more people in the labour market within Tanzania than

other sectors of employment. Tanzania is still implementing a poverty reduction strategy in

giving an appropriate support to the small and medium enterprises sector. This is needed as

evidenced by a number of factors as per this researcher‟s analysis. Lack of evidence for

supportive policy making, the disconnection between economic planning (manpower

available as well as training) and human capital development which means capacity gaps

facing SMEs remain unaddressed. Following the World Bank Group Report (2009) it shows

that, policy making within Tanzania is typically based on the assumption of continuing SMEs

support (World Bank 2009).

Currently there are more female than male entrepreneurs in Tanzania getting involved in

entrepreneurial activities as opposed to other Sub Saharan African countries. Females play a

strong role in terms of labour force participation; women and men in Tanzania are in an

approximately equal position: 88% of women versus 91% of men for those aged 15 – 64

years old in 2006 (Utz 2008). This study will investigate the factors which attract female

entrepreneurs in Tanzania to entrepreneurial activities. Following the World Bank Group

(2009), Tanzanian women seem to contribute heavily to economic growth, but they are at a

disadvantage according to social indicators.

The above phenomenon was noted by Utz (2008) within Tanzania and is quite different

from other developing countries especially Sub-Saharan Africa as whole, with 63% of

women and 86% of men participating in the labour force (World Bank 2009). Within

Tanzania there are only 4% of women who are working in paid jobs (formal/informal) while

9.8% of men who work on paid jobs, Labour Force Survey (URT 2002). Most of the

Tanzanian women work informally with 71% of workers in the formal sector being men

(Tanzania, NBS 2002).