The Performance of Subsistence Entrepreneurs in Tanzania’s Informal Economy

Abstract

Many scholars have found difficulties with the applicability of Western entrepreneurship typologies in non-Western contexts. Hence, this paper “takes a step back” by revealing what does apply as opposed to what does not apply. First, this paper investigates what the performance of subsistence entrepreneurs in Tanzania’s informal economy consists of. Second, it examines which demographic and social factors predict that performance. Based on a literature review and a pre-study, a main study with questionnaires was completed by 152 informal food vendors — that is, “subsistence entrepreneurs”, in southern Tanzania. Next, correlation, factor, reliability and regression analyses were performed to test the hypotheses. Based on a factor analysis, a distinction is made between basic performance and advanced performance. The results show that advanced performance is positively influenced by experience and age; but other factors, such as the subsistence entrepreneur’s gender, education and support from family, have no effect.

Jump for joy: happiness as the route to increased living standards of entrepreneurs in Zambia

“…Indicators such as the ability to build/buy a house, pay school fees and afford food are often used as proxies of performance, and, generally, entrepreneurs claim to have realized progress in the last few years of business operation (Eijdenberg & Borner, 2017). Such studies have regressed numerous 'positive', personal attributes (e.g.…”

“…Research has shown that, generally, older entrepreneurs in developing countries have gained more experience by learning on the job and, consequently, perform better than their younger counterparts (Eijdenberg, 2016;Eijdenberg & Borner, 2017;Isaga, 2015;Kiggundu, 2002;Nichter & Goldmark, 2009;Obeng et al, 2014). Additionally, being older and happy would also have a positive impact on living standards.…”

“…Secondly, this study is among the first to focus on the relationship between happiness and living standards where best applicable: the under-researched area of the world's 'bottom billion' (Collier, 2008), mostly living in SSA's developing countries (Eijdenberg, 2016;Eijdenberg & Borner, 2017). In general, entrepreneurship research in SSA is scarce while the region is craving for more scholarly attention (Amankwah-Amoah, 2018; Boso et al, 2019;Dana et al, 2018;George et al, 2016;Naudé, 2011;Teagarden, 2019): millions of people are making a living as entrepreneurs every day.…”

Fluid Entrepreneurial Motivations in Tanzania

“…In the emerging context, firm-related performance indicators often lack validity and reliability (Adomako, Danso, Boso, & Narteh, 2018;Frese et al, 2007) and entrepreneurship research is slowly moving from the traditional firm-related performance indicators toward need fulfillment indicators. In Tanzania, examples of different needs concern the food that small business owners can purchase and the issue of whether their access to health care has improved (Eijdenberg & Borner, 2017;Eijdenberg, Paas, & Masurel, 2017). In studies about developing economies, such indicators are also referred to as "welfare attributes," which are the resources and services that people can use to improve the quality of their lives (Charles, 2014;Kaulihowa & Adjasi, 2018;Mutua, Massimo, & Mburu, 2004;Pouw, 2008bPouw, , 2008aPouw & Elbers, 2012).…”