“Any person who identifies an opportunity in the market, gathers
resources and creates and grows a business venture to meet these needs.
He or she bears the risk of the venture and is rewarded with profit if
An entrepreneur therefore organizes and
manages a business and assumes risk for the potential of profit. This
shows that opening a small business involves both risk and a financial
investment. An entrepreneur decides to take control of his / her future
and become self-employed, whether by creating his / her own unique
business or working as a member of a team.
The next definition to consider is the
The dictionary definition of success is:
“Fortune, prosperous progress, achievement, attainment of wealth,
influence or acclaim”.
ENTREPRENEURSHIP IN TANZANIA
More than 95% of businesses in Tanzania are small enterprises.
Together, they contribute about 35% of the country's Gross Domestic
Product (GDP). There are currently in excess of a million entrepreneurs
in Tanzania, running small, medium or micro enterprises (SME’s)
responsible for generating up to 40% of total employment.
The majority of micro enterprises fall under the informal sector.
They also include survivalist enterprises, whose income generation is
less than the minimum income standard or poverty line, often there are
no paid employees and asset value is minimal. For example, vendors and
These are mostly formalized undertakings. The distinguishing factor is
that a secondary coordinating managerial structure is in place.
Here there is further decentralization of decision-making, with a more
an advanced management structure and an increased division of labour.
These have a hundred and above employees and their capital investment in
machinery is large (above 800 million Tanzanian Shillings).
CULTURAL, SOCIAL AND GENDER BARRIERS
The cultures and societies of sub-Saharan Africa all have the
following characteristics in common:
High Power Distance: this is
typical of cultures where there is a strong hierarchy of authority,
based on age and family status.
High Uncertainty Avoidance:
unwillingness to take risks, a need to stick with what is familiar.
Low Individualism: “Ubuntu”
and “Ujamaa"; a drive towards conformity within a group.
Low Masculinity: a low
individual need for achievement.
THE ADVANTAGES AND DISADVANTAGES OF
BEING AN ENTREPRENEUR
Before embarking on your journey, it is important to get a clear
idea of the advantages and disadvantages of running your own business.
This will assist you to assess your risks and weigh up the benefits.
Sense of achievement
Contribution to society
CHARACTERISTICS AND QUALITIES OF A
Successful business owners, large and small, generally have a few things
Drive and Attitude
Determination and Commitment
Interpersonal Skills and Leadership
Family Support and Lifestyle
Money Handling Skills
Planning and Organizational Ability
Creativity and Innovation
Health and Stress Management
you can dream it, you can do it.”- Walt Disney
is a goal seeking animal. His life only has meaning if he is reaching
out and striving for his goals”.- Aristotle
SMART Goal Setting The criteria for
SMART goals are:
S = Specific
M = Measurable
A = Attainable
R = Realistic
T = Timely
IDENTIFYING BUSINESS OPPORTUNITIES
The word “idea” comes from an ancient Greek word meaning “a specific
thought which arises in the mind”.
The entrepreneur must first evaluate whether the idea presents a viable
business opportunity or not.
Durable The product / service
will be around long enough for you to capitalize on the opportunity
Timely The product / service
is offered at the right time for meeting the needs of the market.
Add value The product /
service must create value for the end user / customer.
Attractive The end user must
want to buy it.
* Buy the SME Toolkit for more details