Abstract:Promoting industrial sector has been among key development strategies in most of developing countries including Tanzania. Industrialization has been insisted in Tanzania by all regimes since independence. In the quest to promote industrial economy, for decades, co-operatives have been involved directly and indirectly in the process. Government recognizes co-operatives as key development partners in the current move toward a middle income and semi-industrialized status. This calls for sorting out clearly on how… Show more
“…Sub-Saharan Africa refers to land partially or fully below the Sahara Desert and comprises 46 countries that are grouped into West, Central, East, Southeast, Horn, and Southern Africa. Tanzania (in East Africa) is currently categorized as a developing economy striving to become a middle-income economy by 2025 (Anania & Nade, 2020). With an estimated population of 58 million, per capita income increased from $958 in 2016 to $1122 in 2019 (URT, 2018; World Bank, 2020).…”
Necessity entrepreneurship (NE) describes the process of venturing a business out of need when alternative options are seemingly absent. Whereas prior research typically understands NE to be a homogenous construct, recent theorizing suggests the possibility of NE heterogeneity. In this paper we employ Sen’s capability approach to elicit NE variety. Using data gathered from 820 households in rural Tanzania, our cluster analysis generates four distinct types of NE that vary significantly regarding their entrepreneurial activities, determinants and outcomes. Our findings demonstrate the relevance of life satisfaction and reveal the role of choice in NE. Our study thereby advances a nuanced perspective of NE.
“…Sub-Saharan Africa refers to land partially or fully below the Sahara Desert and comprises 46 countries that are grouped into West, Central, East, Southeast, Horn, and Southern Africa. Tanzania (in East Africa) is currently categorized as a developing economy striving to become a middle-income economy by 2025 (Anania & Nade, 2020). With an estimated population of 58 million, per capita income increased from $958 in 2016 to $1122 in 2019 (URT, 2018; World Bank, 2020).…”
Necessity entrepreneurship (NE) describes the process of venturing a business out of need when alternative options are seemingly absent. Whereas prior research typically understands NE to be a homogenous construct, recent theorizing suggests the possibility of NE heterogeneity. In this paper we employ Sen’s capability approach to elicit NE variety. Using data gathered from 820 households in rural Tanzania, our cluster analysis generates four distinct types of NE that vary significantly regarding their entrepreneurial activities, determinants and outcomes. Our findings demonstrate the relevance of life satisfaction and reveal the role of choice in NE. Our study thereby advances a nuanced perspective of NE.
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