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Article
Publication date: 12 October 2017

Nsubili Isaga

Focussing on the relationship between personality traits and small and medium enterprise (SME) performance in Tanzania’s furniture sector, the purpose of this paper is to…

Abstract

Purpose

Focussing on the relationship between personality traits and small and medium enterprise (SME) performance in Tanzania’s furniture sector, the purpose of this paper is to examine the effect of cognitive characteristics as a mediating variable.

Design/methodology/approach

A total of 300 SMEs in furniture sectors from four different regions in Tanzania were involved in this study. Structural equation modelling approach was used to test simultaneously the direct and the indirect effects of the characteristics of the entrepreneurs on the SMEs performance.

Findings

The findings show that personality traits have a significant influence on SMEs performance through cognitive characteristics.

Research limitations/implications

The study’s data were collected from businesses in only one industry (furniture) in Tanzania. Future research may extend the approach to other business sectors.

Practical implications

Since entrepreneurial characteristics are considered an important driver of a country’s economic development and performance, it is hoped that governments and sector associations implement suitable policies and incentives to develop an entrepreneurial culture among citizens.

Originality/value

Current knowledge about entrepreneurial characteristics and their relationship with SME performance in developing countries, especially Tanzania, is very limited. The present study suggests that cognitive characteristics are necessary mediators of the link between personality traits and SME performance.

Details

Journal of Small Business and Enterprise Development, vol. 25 no. 4
Type: Research Article
ISSN: 1462-6004

Keywords

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Article
Publication date: 30 October 2018

Nsubili Isaga

Research on women-owned business is more extensive in developed countries than in developing countries and such one cannot compare the results. This paper aims to examine…

Abstract

Purpose

Research on women-owned business is more extensive in developed countries than in developing countries and such one cannot compare the results. This paper aims to examine the motives of women in Tanzania (a less developed country) to start their own businesses and the challenges they faced in running their businesses.

Design/methodology/approach

Based on 400 response to a semi-structured questionnaire and in-depth interview with 20 female entrepreneurs. Subsequently, descriptive and factors analysis were performed to analyze the data

Findings

Based on survey responses, the primary reason for starting a business was to create employment for the woman herself. Other motives include supplementing income and enabling women to be able to do the kind of work they wanted to do. According to the factor analysis, female entrepreneurs are driven more by push factors than pull factors. The most serious problems faced by female entrepreneurs are lack of access to finance, gender-related problems and social and cultural commitments.

Research limitations/implications

The sample was selected from urban areas of only three regions, out of 26 regions in Tanzania. Researchers may extend the study to other regions; also, the non-probability sampling method used in this study essentially means that there is a limitation to the extent to which the research findings can be generalized to the rest of the population of female entrepreneurs in Tanzania.

Practical implications

Policy makers, financial institutions and all organization that have a stake on development on female entrepreneurs in Tanzania should design policies and programs that encourage and promote the creation and growth of businesses. Collective efforts from the government, public and private institutions and NGOs are needed to eliminate the challenges, especially gender-related problems.

Practical implications

By studying female owner-managers’ motivations and constraints, the author suggests that to a greater extent, gender-related problems, social and cultural commitments and access to finance and networks are the constraints faced by female entrepreneurs.

Originality/value

The research on female entrepreneurs in the context of Tanzania is scarce, this study responds to a need of better understanding women motivations and constraints. By studying these factors, this study shows that startup motives and constraints faced by female entrepreneurs are unique to different contexts.

Details

International Journal of Gender and Entrepreneurship, vol. 11 no. 2
Type: Research Article
ISSN: 1756-6266

Keywords

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Article
Publication date: 7 September 2015

Nsubili Isaga, Enno Masurel and Kees Van Montfort

This paper aims to contribute to the understanding of the motives of individuals in Tanzania to start their own businesses on the one hand and the growth of their firms on…

Abstract

Purpose

This paper aims to contribute to the understanding of the motives of individuals in Tanzania to start their own businesses on the one hand and the growth of their firms on the other hand.

Design/methodology/approach

A survey method was used to gather data from 300 small business owners and managers located in selected cities in Tanzania. Multiple regression analysis was conducted to analyse the relationship between the motivation to start an own business on the one hand and firm growth on the other hand. Three indicators for growth, namely, employment, sales and assets, were used to measure growth.

Findings

The results suggest that that pull factors are more important to start the businesses than push factors. This contradicts the common opinion and previous research that push factors are more important than pull factors in developing countries. Furthermore, the study found that pull factors are positively related to firm, whereas push factors are negatively related to firm growth.

Research limitations/implications

It should be noted that while this paper makes a number of contributions, there are some limitations that should be considered when interpreting the results. For instance, the data for this study were collected from only one type of business, i.e. the furniture industry (in Tanzania). Accordingly, we do not know the applicability of these findings to other businesses in other sectors. Therefore, future research should include businesses in other sectors to ascertain if the present findings are specific to the furniture business only or are applicable to other businesses as well.

Practical implications

Our findings indicate that there are differences in motivations among owner-managers in starting the business and subsequent firm performance. Therefore, individuals need different forms of support depending on the level of development of their business, as well as their motivation. For example, we have seen that the presence of role models has a significant effect on business growth. Therefore, the government might consider using the media and other mechanisms to feature stories about successful entrepreneurs.

Originality/value

The authors extend the findings of previous studies that investigate the owner-manager motives and small and medium-sized enterprises (SMEs) growth in developed economy settings, but neglected emerging economies. The study also contradicts the common opinion and previous research that push factors are more important than pull factors in developing countries.

Details

Journal of Entrepreneurship in Emerging Economies, vol. 7 no. 3
Type: Research Article
ISSN: 2053-4604

Keywords

Content available
Book part
Publication date: 28 May 2020

Emiel L. Eijdenberg and Neil Thompson

Abstract

Details

Entrepreneurs’ Creative Responses to Institutional Challenges
Type: Book
ISBN: 978-1-83909-542-9

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