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 ENTREPRENEURSHIP ACTIVITIES IN

RURAL TANZANIA:

UNDERSTANDING WOMEN’S MICRO BUSINESSES

LUCY BONIFACE SSENDI

A thesis submitted in partial fulfilment of the requirements of the

Robert Gordon University

for the degree of Doctor of Philosophy

This research programme was carried out

in collaboration with Kibaha Education Centre - Tanzania

February 2013
 DEDICATION

This thesis is dedicated to my parents, the late Mzee Boniface Balimunsi Ssendi and Mama
Bibianna Morris Luhamba, who always remain the major source of encouragement and
support in my education journey, not knowing that one day I would reach this stage.

i
 ACKNOWLEDGEMENT

May I, first of all, sincerely, express my heartfelt gratitude to my supervisors Professor

Rebecca Wallace and Professor Alistair Anderson for their endless support, patience and
encouragement throughout my studies.

In a very special way I appreciate to have met Professor Alistair Anderson who would
always find time for listening for major and minor concerns and obstacles that I encountered
during my journey of research degree. His valuable enthusiasm in dealing with academic
matters had indeed helped me in so many ways and boosted me academically and as a
person. Through him I have learnt a lot on how the academic world operates.

May I also thank the Dean, Professor Rita Marcel, all staff members and colleagues at
Aberdeen Business School for their support; Anne Nicholas and other library staff for their
exemplary support and service they rendered to me during my studies; Colin Jamieson and
his IT team for their continuous relentless support.

In order to accomplish this research data were essential. I gathered a lot of data. Many people
assisted with this, I would like in a very special way to thank all my respondents, local
government officials and village market leaders for their generosity. Without them there
would be nothing to work with. My friends in Aberdeen who let me pilot my interview
questions.

In a very special way I would like to thank my dearest friends Laurent Rutamanyirwa, Bee
Ching Gan, Crispen Karanda, Constantine Nana, Ese Oteheri, Omo Adeola Omole, and all
PhD Students at Aberdeen Business School for extending their support and encouragement
to me throughout my studies. They have been pillars of my strength, may God bless them. It
is not easy to mention every individual who has touched me in one way or another but I take
this opportunity to thank them all, and wholeheartedly.

I take this opportunity also to thank my family and friends, especially my parents and
brothers David Luhamba, Edward Kussambiza, Jeremiah Kalange,and Morris Ssekigoye, for
being around and for taking care of my children while I was away. God bless them.

ii
I would like and in a very special way, to thank my lovely daughters Sabina Mpombwe,
Gloria Kasenya and Linda Myoma and my beloved son Alexander (Kaka) and their father
Julius Mabele for their love, dedication and understanding. It was a difficult time for all of us
but it was hardest on them as they had to deal with my absence for a prolonged period,
especially at crucial growing stages of their lives. I promise to make it up to them, however
difficult it will be. God bless them.

iii
 ABSTRACT

In rural Tanzania women play a crucially important role in social and economic production.
However, the constraints of poverty, combined with poor infrastructure and minimal
resources, limit entrepreneurial possibilities. Nonetheless, poor rural female entrepreneurs
use enterprise to try to improve their lives. But this “survivalist” entrepreneurship appears
radically different from western models of enterprise and we know very little about
processes and practices.

Literature suggests that there is a substantial gap of knowledge in terms of how much poor
rural female entrepreneurs use entrepreneurship activities to cope in their livelihood, and this
issue is the focus of this study. Like any other social and economic process, entrepreneurship
is dependent on the social setting of an area, that is, the people and the environment in which
they carry out their daily life activities. Thus, entrepreneurship development in Tanzania,
like any developing country, reflects the social and cultural differences, hence the difference
in entry, performance, and survival of enterprises.

This study is also guided by the fact that significant differences exist in the general
entrepreneurial behaviour and performance between men and women, as well as between
women from the same region and from other localities. This study aims at increasing
understanding on whether these differences are brought about by the cultural and social
attributes, rather than physical and psychological differences. The purpose of this study is to
explore on how socio cultural factors have impacted on the way poor rural female
entrepreneurs undertake their entrepreneurial activities in rural village markets in Tanzania.

The study was guided by the social constructionist theory. An ethnographic case study
approach was used to collect data. Primary data were collected from thirty nine respondents
from three village markets: Kongowe, Ruvu Darajani and Patandi. These markets portray the
commercial side of social life and the social side of the commercial life. Observation,
conversations, interviews and life stories were used to gather the required information.
Secondary data were collected from various publications and reports from villages to central
government level. For this study, the researcher looked into four assumptions, namely
ontology, epistemology, assumptions on human nature and methodological implications. In

iv
undertaking this study, multiple approaches and data sources were used to triangulate the
findings and deepen understanding of social and cultural parameters in three settings.

The sustainable rural livelihood framework was used to analyse the impact of the
entrepreneurial environment, availability and access to livelihood assets and the level of
vulnerability on poor rural female entrepreneur’s lives. It was revealed that poor rural female
entrepreneurs undertake entrepreneurial activities in order to survive and not because they
want to be entrepreneurs. Enabling environment dictates the type, amount and quality of
assets possessed by the rural female entrepreneurs. It was also shown that poor women with
few assets are more vulnerable to much of the social and economic harassments. It is within
this vulnerability context where rural poor female entrepreneurs choose the strategies in
order to achieve their livelihood outcomes.

Findings from this study show that some cultural beliefs have negative impact on
entrepreneurship and consequently economic development of the country. Beliefs in
witchcraft and ignorance towards education influence the way rural women start and run
their businesses. Religious and customary laws discriminate poor rural female entrepreneurs
and hinder their efforts in undertaking entrepreneurial activities. Unfavourable credit
repayment conditions and misuse of loans have negative impact on the growth of most
enterprises. Moreover, business support from government and non governmental agencies is
limited. The study shows how the phenomenon of entrepreneurship is context specific and
how it differs across cultures.

This research has made three contributions: firstly, by bringing new evidence to bear;
secondly, using already known information with new interpretation; and thirdly, by tackling
an existing problem using ethnographic approach.

v
 TABLE OF CONTENTS

DEDICATION .................................................................................................................. i
ACKNOWLEDGEMENT ....................................................................................................... ii
ABSTRACT ................................................................................................................ iv
LIST OF FIGURES ................................................................................................................xi
LIST OF TABLES ...............................................................................................................xii
LIST OF PHOTOGRAPHS.................................................................................................. xiii
LIST OF APPEDICES.......................................................................................................... xiv
ABBREVIATIONS ................................................................................................................xv
CHAPTER ONE ..................................................................................................................1
INTRODUCTION TO RURAL ENTREPRENEURSHIP IN TANZANIA ............................1
1.0 Introduction ..............................................................................................1
1.1 Background to the research problem........................................................1
1.1.1 The context and environment for the study ..............................................2
1.1.2 Significance of the study...........................................................................5
1.1.3 The constraints and barriers for women in entrepreneurship....................6
1.2 Statement of research problem.................................................................6
1.2.1 Theoretical orientation of research ...........................................................7
1.3 Research issues and propositions .............................................................8
1.3.1 Objectives of the study .............................................................................9
1.3.1.1 General objective ......................................................................................9
1.3.1.2 Specific aims.............................................................................................9
1.4 Research contributions .............................................................................9
1.5 Justification for research .......................................................................10
1.5.1 Importance of entrepreneurship to Tanzania ........................................11
1.5.2 The choice of research topic ..................................................................11
1.5.3 The position of the study with relation to others ...................................12
1.6 Methodology overview .........................................................................13
1.7 Delimitations of scope...........................................................................14
1.8 Outline of the research ...........................................................................15
1.9 Conclusions ............................................................................................16
CHAPTER TWO ................................................................................................................17
RESEARCH SETTING: TANZANIA NATIONAL CONTEXT ..........................................17

vi
2.0 Introduction ...........................................................................................17
2.1 Location of Tanzania.............................................................................17
2.2 Tanzania population.................................................................................19
2.3 Regions of the study..............................................................................19
2.3.1 Pwani region .........................................................................................19
2.3.2 Arusha region........................................................................................20
2.4 The economy of Tanzania .....................................................................22
2.5 Women in Tanzania ..............................................................................28
2.6. Entrepreneurship development in Tanzania ..........................................30
2.6.1 The history of entrepreneurship in Tanzania .........................................30
2.6.2 Rural entrepreneurship in Tanzania ......................................................31
2.6.3 Women entrepreneurship in Tanzania ..................................................32
2.7 Conclusion............................................................................................33
CHAPTER THREE ............................................................................................................... 35
REVIEW OF LITERATURE ABOUT RURAL FEMALE
ENTREPRENEURSHIP.........................................................................................................35
3.0 Introduction................................................................................................35
3.1 Origin of entrepreneurs and entrepreneurship ...........................................35
3.1.1 Who is an entrepreneur? ..........................................................................35
3.1.2 The role of entrepreneurs.........................................................................37
3.1.3 Can an entrepreneur be created? ..............................................................37
3.1.4 Genesis of entrepreneurship.....................................................................39
3.2 Female entrepreneurship ............................................................................40
3.2.1 History of female entrepreneurship .........................................................40
3.2.2 Trends of women entrepreneurship .........................................................41
3.2.3 Profile of women entrepreneurs...............................................................42
3.2.4 Role of culture in women entrepreneurship development .......................42
3.2.5 Gender imbalances...................................................................................45
3.3 Analysis of rural female entrepreneurship ..................................................45
3.3.1 Background experience............................................................................46
3.3.2 Nature of rural women’s enterprises........................................................46
3.3.3 Entrepreneurship process.........................................................................46
3.3.3.1 Opportunity recognition...........................................................................46
3.3.4 Female entrepreneurship performance.....................................................48

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 3.3.5 Education and management competence .................................................49
3.3.6 Constraints and barriers ...........................................................................50
3.4 Conclusion..............................................................................................51
CHAPTER FOUR ................................................................................................................53
CONCEPTUAL FRAMEWORK FOR THE STUDY ...........................................................53
4.0 Introduction ............................................................................................53
4.1 The conceptual framework of the study .................................................53
4.2 Choice of theory.....................................................................................55
4.2.1 Sustainable livelihood approach .............................................................56
4.2.2 Origins and objectives of livelihood approach .......................................56
4.3 Components of livelihood framework....................................................57
4.3.1 Vulnerability context ..............................................................................57
4.3.2 Livelihood Assets ..................................................................................58
4.3.2.1 Human capital ........................................................................................58
4.3.2.2 Social capital..........................................................................................59
4.3.2.3 Natural capital........................................................................................59
4.3.2.4 Physical capital ......................................................................................59
4.3.2.5 Financial capital.....................................................................................59
4.3.3 Transforming structures and processes...................................................60
4.3.3.1 Transforming structures..........................................................................60
4.3.3.2 Transforming processes ..........................................................................60
4.3.4 Livelihood strategies...............................................................................60
4.3.5 Livelihood outcomes...............................................................................61
4.4 Conclusion ................................................................................................62
CHAPTER FIVE ................................................................................................................63
METHODOLOGY ................................................................................................................63
5.0 Introduction ............................................................................................63
5.1 Underlying philosophical assumptions ..................................................63
5.1.1 Ontological assumptions.........................................................................64
5.1.2 Epistemological assumptions..................................................................64
5.1.3 Assumptions about human nature...........................................................65
5.1.4 Methodological assumptions ..................................................................66
5.2 Justification for chosen methodology ....................................................66
5.3 Research strategy ...................................................................................67

viii
 5.3.1 Choice of study approach ........................................................................67
5.3.2 The challenges of using ethnography ......................................................69
5.4.3 Justification of research aims and research questions..............................70
5.3.4 Study population ......................................................................................73
5.4 Research procedures ..................................................................................73
5.4.1 Pilot study experience..............................................................................73
5.4.2 Fieldwork experience...............................................................................74
5.4.3 The sampling strategy and sample population.........................................75
5.4.4 Data collection .........................................................................................78
5.4.5 Gaining access .........................................................................................79
5.4.6 Interpersonal observation.........................................................................80
5.5 Ethical issues...............................................................................................80
5.6 Conclusions.................................................................................................81
CHAPTER SIX ................................................................................................................82
RESEARCH CONTEXT ........................................................................................................82
6.0 Introduction ............................................................................................82
6.1 The settings: Description of the village markets ....................................82
6.1.1 Location of the village markets ..............................................................82
6.1.2 Market Infrastructure ..............................................................................83
6.1.3 Types of businesses ................................................................................89
6.2 Marketing activities................................................................................92
6.3 Female micro-entrepreneurs...................................................................94
6.3.1 Mwajuma of Kongowe market ................................................................95
6.3.2 Mary the cooked food chairperson ..........................................................96
6.3.3. Aikaeli who sells millet porridge.............................................................98
6.3.4 Tina operates the smallest business .........................................................99
6.3.5 The elder Mwajuma who owns a genge ..................................................99
6.3.6 Neema moved from owning a pub to owning a guest house .................100
6.3.7 Sofia with the big pans at Ruvu Darajani ..............................................101
6.3.8 Rehema operates a genge with her husband ..........................................102
6.3.9 Eva who sells local brew and is also a leader in the village ..................103
6.3.10 Sophia is a tailor working from home....................................................104
6.3.11 Ibula sells cassava and sweet potatoes from her own farm....................105
6.3.12 Mariam owns a shop with her husband..................................................106

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 6.3.13 Elinuru who was a cashier and now a maize whole seller .....................108
6.3.14 Fausta a widow who sells small grains ..................................................108
6.3.15 Apaikunda the entrepreneur who sells breakfast
at Tengeru market ................................................................................109
6.3.16 Aishi the youngest respondents at Tengeru market ...............................109
6.3.17 Luyana a widow who sells vegetables ...................................................110
6.4 The Sustainable livelihood framework ................................................115
6.5 Conclusion............................................................................................118
CHAPTER SEVEN ..............................................................................................................119
ANALYSIS AND DISCUSSION ........................................................................................119
7.0 Introduction ..........................................................................................119
7.1 Enabling environment for rural female entrepreneurs .........................120
7.2 Livelihood assets..................................................................................123
7.2.1 Human capital ........................................................................................123
7.2.2 Natural Capital.......................................................................................126
7.2.3 Physical Capital .....................................................................................127
7.2.4 Financial capital.....................................................................................128
7.2.5 Social capital..........................................................................................129
7.3 Vulnerability context............................................................................130
7.4 Livelihood strategies and outcomes .....................................................135
7.5 Conclusion............................................................................................139
CHAPTER EIGHT ..............................................................................................................140
CONCLUSIONS AND CONTRIBUTIONS OF THE STUDY...........................................140
8.0 Introduction ..........................................................................................140
8.1 Summary of the thesis ..........................................................................140
8.2 Research contribution for theory..........................................................141
8.3 Implications for policy and practice.....................................................143
8.3.1 The future orientation of female entrepreneurship ..................................143
8.3.2 Government participation in the improvement
of entrepreneurship...............................................................................145
8.3.3 Impact of socio cultural factors on rural entrepreneurship ...................146
8.4 Final comments and suggestions for further research ..........................146
REFERENCE ..............................................................................................................149
APPENDICES ..............................................................................................................175

x
 LIST OF FIGURES

Figure 1: Thesis outline ...................................................................................................16

Figure 2.1 Map of Tanzania ..............................................................................................18
Figure 3.1 Features associated with culture ......................................................................44
Figure 4.1 A generic livelihood.........................................................................................62
Figure 5.1 Sampling procedure .........................................................................................79
Figure 7.1 Components of enabling environment ...........................................................123
Figure 7.2 The asset pentagon as affected by the enabling environment ........................130
Figure 7.3: The relationship between the enabling environment,
assets and level of vulnerability .....................................................................135
Figure 7.4: The livelihood framework for rural poor female entrepreneurs ........................138

xi
 LIST OF TABLES

Table 2.1 Socio-economic indicators of the Pwani and Arusha regions ...........................26
Table 2.2 Socio economic indicators for Arumeru, Bagamoyo
and Kibaha districts ...........................................................................................27
Table 6.1 Personal Profiles of Operating Women Entrepreneurs......................................95
Table 6.2: Comparative case summary .............................................................................111
Table 6.3 Business Start up and Motivation ....................................................................112

xii
 LIST OF PHOTOGRAPHS

Photograph 6.1 Typical stall at Ruvu Darajani market .....................................................86

Photograph 6.2 The Tengeru market.................................................................................87
Photograph 6.3 Food trading entrepreneur........................................................................90
Photograph 6.4 Sofia with her big pans of food................................................................90
Photograph 6.6 Mary with the researcher in her stall........................................................98
Photograph 6.7: Sofia, Rehema and the researcher chatting ............................................105
Photograph 6.8 Ibula with the researcher.......................................................................106
Photograph 6.9 Mariam in front of her shop...................................................................107
Photograph 6.10 A female entrepreneur trading on the pavement....................................117

xiii
 LIST OF APPEDICES

Appendix I: letter of informed consent to participate in the study ......................................175

Appendix II: Research Guide ..............................................................................................176

xiv
 ABBREVIATIONS
AD Anne_ Domino
AIDS Acquired Immune Deficiency Syndrome
BDS Business Development Strategy
BRELA Business Registration and Licensing Authority
CCM Chama Cha Mapinduzi
DFID Department for International Development
FGM Female Genital Mutilation
GDP Gross Domestic Product
GEM Global Entrepreneurship Monitor
GIRR Gender Issues Research Report
GTZ German Technical Assistance Agency
HBS Household Budget Survey
HIV Human Immunodeficiency Virus
ILO International Labour Organization
IMF International Monetary Fund
JICA Japan International Cooperation Agency
MFI Micro Financing Institution
NBS National Bureau of Statistics
NGO Non Governmental Organization
ODI Overseas Development Institute
PTF Presidential Trust Fund
SIDO Small Industries Development Organization
SME Small and Medium Enterprises
TANROADS Tanzania Roads Agency
TB Tuberculosis
TGNP Tanzania Gender Networking Programme
TZS Tanzanian Shillings
UDEC University of Dar es Salaam Entrepreneurship Centre
UNIDO United Nations Industries Development Organization
URT United Republic of Tanzania
USA United States of America
VETA Vocational Education Training Authority
WED Women Entrepreneurship Development

xv
 CHAPTER ONE

INTRODUCTION TO RURAL ENTREPRENEURSHIP IN

TANZANIA

1.0 Introduction
Chapter one provides a short description of the study and the issues to be addressed. It
focuses on various aspects related to entrepreneurship and existing policy environment
around which entrepreneurship strategies are laid globally and in a Tanzanian perspective. It
draws from previous studies and concepts related to the subject, which are critically
reviewed. The research problem to be addressed in the study is how female entrepreneurs
from different socio cultural backgrounds undertake their activities in rural Tanzania. This
chapter is organised in eight sections. Section One review the background of the study;
Section Two discusses and the importance of female entrepreneurship in Tanzania and
Section Three presents the research problem. In Section Four, are presented the research
issues and propositions. The research is justified in Section Five, Section Six presents the
methodological overview for conducting the study; Section Seven discusses the delimitations
and the scope of the study and Section Eight presents the structure of the thesis.

1.1 Background to the research problem

In Tanzania, most of the people involved in entrepreneurship are “survivalists”. It is argued

that people in the country have been forced in undertaking entrepreneurial activities by
economic necessity as opposed to entrepreneurial spirit and need for achievement (Olomi,
2009:16). Many people in developing countries live in poverty or with insufficient income
and are therefore, forced to engage in entrepreneurial activities to fill the gap left by
insufficient wages, unreliable agriculture production or unemployment (Mfaume and
Leonard, 2004:6). Although the mentioned factors are true for both men and women, most
studies show that the situation is more prevalent in women and, in particular, rural women.

According to the 2002 census, in Tanzania women constitute fifty-two percent of the total
population (NBS, 2002) and represent seventy percent of the labour force in the informal
sector (Idabaga-Nchimbi, 2002:4). The gender gap in accessing education for women results
1
in a reduced possibility for women involvement in the formal labour market and at
managerial levels within enterprises. Moreover, a Tanzanian woman is expected to handle
household duties such as caring for the family, particularly children and elderly people; food
production and preparation in addition to earning income. Historically, women in Tanzania
and in many developing countries have been treated as citizens of lower importance
compared to men. Women have played a greater role than men of ensuring sustainability to
the nation particularly during times of economic crisis which have prevailed in the country
from 1970s to the present day (GIRR 9, 1995). Although women have been contributing to
their country’s economic development, their access and power to control resources is limited.
In many traditions, women seldom have control over land or other properties during their
marriage and after deaths of their husbands.

As noted earlier, involvement of women’s into effective entrepreneurship in Tanzania is

perceived to be a recent phenomenon; This is mainly as a result of the country’s economic
crisis and World Bank and IMF restructuring programmes which led to retrenchment and
consequently decline in household income and employment opportunities (UDEC, 2002).
According to Nchimbi (2002) most of Tanzanian enterprises were started during the 1990’s.
Recognition and documentation of women participation in entrepreneurship activities is very
limited. Entrepreneurship in the country is acknowledged as being dominated by men and
non-indigenous communities (Stevenson and St-Onge, 2005). For most of the women who
are in business, their survival remains a real problem as many lack professional abilities in
managing their businesses compared to men (Rutashobya and Spring, 2009:7).

The above situation suggests that there may be practical factors that inhibit the performance
of women in developing countries and in particular in rural areas. Consequently, it will be
useful to investigate how these factors affect the operations of rural entrepreneurs. It is this
situation that prompted this study.

1.1.1 The context and environment for the study

Like any other social and economic process, entrepreneurship is dependent on the social
setting of an area; the people and the environment in which they carry out their daily life
activities (Dana, 1993; Buame, 1996:17). As a process, entrepreneurship is governed by
social and cultural factors that are characterized by continuous changes which evolve in an

2
economic system, the entrepreneurship environment and the underlying social and cultural
attributes of the people in that particular area (Gamini de Alwis and Senathiraja, 2003:4).
Traditional literature in the field of entrepreneurship has laid great emphasis on the
psychological attributes of the individual as the underlying factor for engaging in
entrepreneurial activities (Buame, 1996:17). However, there are other important attributes
which may influence the success or failure in entrepreneurship. These include the specific
background of individuals in the society, the culture in which their activities are embedded
and their life experiences. These attributes are said to be helpful in differentiating
entrepreneurs from non-entrepreneurs, in terms of their behaviour and common conduct in
the society and the way they undertake the entrepreneurial activities and their lives in general
(Fayolle, 2005). The individual psychological attributes, such as personal motivation and
initiative, entrepreneurship orientation, innovativeness and risk taking, may affect the
success or failure of the entrepreneurship development but they may not decide how people
place meaning to their daily lives (Anderson and Smith, 2007).

There are differences in entrepreneurial activities, depending on demographic characteristics,

personal traits, ethnicity, socio cultural relations, behaviour patterns, life experiences and
educational background. There are also predisposing factors, such as the need for power or
independence, and the desire for achievement and social recognition (Saffu, 2003). These
factors may impact on how entrepreneurial activities are carried out and the future direction
of the entrepreneurial sector, thus shaping who may or may not engage in entrepreneurial
activities. Thus entrepreneurship development in Tanzania, like in many developing
countries, reflects the social and cultural differences, hence the difference in entry,
performance, and survival of enterprises. This study is also guided by the fact that significant
differences exist in the general entrepreneurial behaviour and performance between men and
women, as well as between women from the same region and from other areas within the
same region. This study aims at increasing understanding on whether these differences are
brought about by the social and cultural attributes, rather than physical and psychological
differences.

It is also noted that there are very few studies on social-cultural factors affecting rural female
entrepreneurship in Tanzania. Consequently, there is limited empirical evidence and
comprehensive analysis of fundamental factors that affect poor women's entry into business
and subsequently performance of their enterprises (Ssendi and Anderson, 2009; Satta, 2003).

3
The existing literature on rural female entrepreneurship is limited. Most of the available
literature does not answer the “Why” and “How” questions; and this study is intended to try
and extend the debate in this area by adding to the existing knowledge on the studied
phenomenon. There are few studies which have looked into how rural female entrepreneurs
undertake their daily activities. Few of the studies done are commissioned with specific
objectives (Tovo, 1991; Makombe, 2006). This study investigates women who do business
in village markets in order to sustain their well being.

Although economic factors might play an important role in the well-being of entrepreneurial
performance, there are other factors one has to deal with when undertaking entrepreneurship.
As indicated earlier, these non-economic factors cannot easily be separated from the socio
cultural context in which they are embedded. The factors such as tradition and norms, family
background, entrepreneurial experience, and skills trainings may have a positive or negative
impact on how people undertake entrepreneurial activities. This study looks at the process of
entrepreneurship and how the socio cultural factors may impact on the way the
entrepreneurial process is undertaken in certain contexts.

The ability to undertake successful entrepreneurial activities has a great impact on the
performance of the entrepreneur (Olomi, 2009). This is because it affects the well being of
the people involved and also impacts on the nation’s economic development. It requires the
person undertaking entrepreneurial activities, be it business creation or self-employment, to
be versed with the knowledge and skills of identifying opportunities and using the resources
at her/his disposal to undertake a business venture or employ herself/himself for profit gain
(Gibb, 2005). Therefore, the entrepreneur perceives the business or venture creation as an
extension of his or her personality, intricately linked with livelihood needs and desires.

As in the world generally (Anderson et al, 2009), in Tanzania, the term entrepreneurship has
become the new, commonly used catchword. It is widely applied in private and public
sectors alike. In recent years, entrepreneurship, which can be translated in Swahili as
ujasiriamali, has gained social, economic, cultural and political significance. The
government, civil society organisations and foreign development partners support
entrepreneurship in every aspect. However the performance of entrepreneurs in Tanzania has
remained low compared to their counterparts in Eastern Africa and elsewhere in the region

4
(Ngaleya, 2005) and in particular rural female entrepreneurs are said to be even worse off
(Anderson et al 2009; Ssendi and Anderson, 2009).

Entrepreneurship in Tanzania is characterized by tiny or micro, small and medium

enterprises (Olomi, 2009) and the number increases every day as a result of more
involvement and recognition of the private sector in social and economic development. The
majority of micro enterprises are in the informal sector, run single-handedly or employing
members of the family and have an annual turnover of less than 2000 US dollars. Most of the
micro and small enterprises operate non-farm businesses and farm-related activities in rural
areas mainly operating from home or by the roadside. The most common enterprises include
general trading (fifty-two percent) and services (thirty-four percent), like restaurants, cafes
and bars; with the minority in the mining and manufacturing sector. Overall, women in
Tanzania, like in other developing countries, are the main operators of micro enterprises
(Olomi, 2009:15).

1.1.2 Significance of the study

As noted earlier most poor rural female entrepreneurs in Tanzania are engaged in very small
enterprises and businesses. This situation has prompted the government to develop a number
of policies to support the efforts of the informal sector, because these enterprises are
recognized as the “engines of private-led growth” (Ngaleya, 2005:23). This has resulted in
several programmes and organisations conducting programmes and supporting
entrepreneurship initiatives. The significance of this study is brought by the fact that not
much is known about everyday lives of poor rural female entrepreneurs, how they run their
businesses and how they organise their lives. This study aims at contributing to the
understanding of the entrepreneurship process, activities, and experiences of rural women
entrepreneurs in rural areas in developing countries like Tanzania. This contribution will add
knowledge in the field of entrepreneurship, and inform policy makers, beneficiaries and
other stakeholders of entrepreneurship from government and non-governmental
organisations.

The study aims at deepening understanding and insight in the area of rural female
entrepreneurship. This study is expected to assist in understanding female entrepreneurship
especially in rural areas where the majority of the population of developing countries lives.
Knowledge of entrepreneurship in the developing countries of Africa is very limited. This

5
study may contribute to the improvement of existing policies and practice of female
entrepreneurship in rural areas, not only in Tanzania but also in other African countries.

1.1.3 The constraints and barriers for women in entrepreneurship

In Tanzania, like in many African countries, poverty is widespread in rural areas; moreover,
the bulk of society remains traditionalist when it comes to gender issues. In Africa, women
are the backbone of the rural African economy, they produce three-quarters of the
continent’s food, but they remain the poorest of the poor (TGNP, 2007:1). Women farm
small plots, produce fruits and vegetables and sell them at the road side or in village markets;
they also and provide basic necessities such as food, medicine and clothing for their families
(Charlayne, 2006).

About sixty percent of Tanzanian women live in absolute poverty. In the rural areas and poor
urban suburbs, women are the most disadvantaged, because they lack adequate knowledge of
existing credit facilities and other support services (Ssendi and Anderson, 2009; URT,
2005b; Brain, 1976). Due to their low education level, their knowledge and skills for time
and work management are generally low. They have to spend a lot of time and energy on
their work because they use poor tools in the production process (TGNP, 1997:32). The
study will investigate poor rural female entrepreneurs that operate in their local markets
selling and buying farm and non-farm products.

1.2 Statement of Research Problem

This section aims at explaining how the researcher was exposed to literature in the field of
entrepreneurship and in particular female entrepreneurship and how the exposure assisted in
the formulation of the research problem. In general terms the researcher came across a
number of authors who helped in shaping the understanding of entrepreneurship especially in
the context of developing countries. The researcher learned about authors like Schumpeter,
who recognises an entrepreneur as an innovator, Knight, who describes the role of an
entrepreneur as a risk–taker, and Cantillon and Say who recognise an entrepreneur as
organisers of factors of production (Deakins and Freel, 2006:3). Their work on
entrepreneurship has assisted in expanding the knowledge in the field of entrepreneurship.

The most influential literature was that of Eleanor Schwartz (1976) Entrepreneurship: a new
female frontier which was a breakthrough in the choice of the research problem. When

6
deciding on the research problem to be addressed, one has also to consider how to execute
the study. The literature by Dana and Dana (2005) “Expanding the scope of methodologies
used in entrepreneurship research” was very influential in looking at how this study might
be accomplished.

The research problem addressed in this study is how socio cultural factors have impacted on
the way female entrepreneurs undertake their entrepreneurial activities in rural village
markets. This is a theoretical problem which aims at looking at the limits of previous
research in the field of female entrepreneurship and is guided by a social construction theory.

The study was conducted in the markets of three rural villages in Pwani (Coast) and Arusha
regions in Tanzania. The participants in this study were the poor rural female entrepreneurs
who undertake their activities in these markets. These were the primary informants. The poor
rural female entrepreneurs who were once doing the same business but were not operating at
the time of the study were also included in the study. Other participants included the village
local government officials and market leaders. The poor rural female entrepreneurs were
observed in the context of their everyday entrepreneurial experiences. They were also
investigated on how they attached meaning to their experiences in their daily
entrepreneurship process. The study focused on the role played by poor rural female
entrepreneurs in undertaking entrepreneurial activities to meet their everyday life needs.

1.2.1 Theoretical orientation of research

The importance of theory in entrepreneurship cannot be over-emphasized. The lack of

relevant theories in entrepreneurship is well documented (Anderson and Stanawaska, 2008).
Many of the existing entrepreneurship theories lack common and conclusive explanations
about the phenomenon under study. There is an ongoing debate about the theoretical basis or
underpinnings of entrepreneurship and consensus has not been reached. The researcher
recognises the research which assumes women are different from men. The focus of this
research is not to compare men and women on gender stereotype scales but rather to try
understand women as part of the society who, if given equal opportunities and support in
rural areas, could achieve sustainable development and faster economic growth of their
countries than it is currently. Because of the above reasons, this study has used a social
constructionist perspective to assist in understanding the phenomenon under investigation.
The ideas of this stance come from the early work of Karl Mannheim; Sociology of

7
Knowledge, from the works of Berger and Luckmann (1966); The social construction of
reality and also from the work Lincoln and Guba (1985) in their book Naturalistic enquiry.
More recently Neuman (2000) in his book Social research methods: Qualitative and
quantitative approaches and Schwandt (2007) in his Dictionary of qualitative inquiry have
all developed this perspective. Indeed Smith (2006) argues that what we understand about
entrepreneurship is itself socially constructed.

Social constructionists believe that people who live within their society are interested in
understanding their life worlds. They attach meaning to different things which are found in
their environment. These meanings have varying multiple perspectives. The researcher looks
into these people meanings into a broader picture rather than reducing the meanings to few
categories. (Creswell 2009:8).

This study thus relies on the views of the poor rural female entrepreneurs who are involved
in the study. Questions asked will be broad and general so that the researcher can try to
understand the respondents’ situation through discussion and interactions at the research
setting. Life stories will be solicited to assist in capturing the background and context. The
researcher will ask open-ended questions which will allow respondents to explain subjective
meanings of their life worlds. They usually negotiate these subjective life worlds in their
historical and social contexts. These meanings develop naturally as part of their daily
interaction and the social cultural world they live and work. The researcher’s background
frames the interpretation and thus puts her in the research to accept the interpretation flow
from personal, cultural and historical experience. The aim here is to develop and make sense
of the respondents’ perceptions about their humanity. As a result the study will produce a
“substantial description” of the group under study that may aid in generating or inductively
developing a ‘pattern of meaning’ (Creswell, 2009:8).

1.3 Research issues and propositions

The basic research issues to be addressed in this study are:

1. What are the social, cultural and economic dimensions, as they affect
entrepreneurship, of a developing country like Tanzania?

8
 2. What practice and what policy implications do these dimensions have for the
understanding and recognition of women’s entrepreneurship in developing
countries?
These research issues and propositions will be further established in chapter two and three
where a review of relevant literature will be presented.

1.3.1 Objectives of the study

1.3.1.1 General objective

The primary aim of this study is to describe and analyse how socio cultural factors have
contributed to the way female micro entrepreneurs undertake their entrepreneurial activities
in rural Tanzania. The main objective being to understand how wwomen from different socio
cultural backgrounds undertake their entrepreneurial activities in rural Tanzania, and to offer
this understanding as a platform for the formulation or improvement of polices for women
entrepreneurs in rural areas in Tanzania.

1.3.1.2 Specific aims

The specific objectives on which data will be collected in order to address the research
problem satisfactorily are:
1. To understand the experiences of the studied poor rural female entrepreneurs in
the process of undertaking micro-enterprises in rural Tanzania

2. To explore the nature of rural enterprises undertaken by poor rural female

entrepreneurs

3. To explore the process of undertaking entrepreneurial activities in rural settings

4. To examine the role, nature and constraints for poor rural female entrepreneurs

1.4 Research contributions

In answering the research issues presented in section 1.3, the detailed contribution will be
presented in section 8.2. However, because of its exploratory nature, this research does not
intend to test any theories with data. Instead it aims to add understanding to the existing body
of knowledge in the field of entrepreneurship in general, entrepreneurship in African
countries and, in particular, rural female entrepreneurship in rural areas. A study on rural

9
entrepreneurship adds to the research on the effects of an individual’s background and life
experience on entrepreneurship, in particular from the developing country perspective. The
findings from this research intend to build on existing concepts from the mainstream fields
of social anthropology, economics, management development studies and entrepreneurship.

This study, therefore, tries to explore and examine how the existing theories and concepts do
explain the lives and enterprises of these respondents and try to understand them from the
perspective of a developing country. In summary, this research has made three contributions;
firstly, by bringing new evidence to bear; secondly, by using already known information
with new interpretation; and thirdly, by tackling an existing problem using ethnographic
approach.

1.5 Justification for Research

As noted in earlier sections, this study is selected for the reason that studies on rural female
entrepreneurship are scarce compared to other disciplines (Carter and Marlow, 2007:2). The
situation is worsens in African countries and especially in Tanzania. The few studies
conducted in developing countries were from Asia, mainly India. Studies on the impact of
non-economic factors on female entrepreneurship are rare (Makombe 2006).

Moreover, there are conflicting ideas about rural female entrepreneurship, one being that
female entrepreneurship has been relatively neglected. The researcher supports the view that
female entrepreneurs are not only neglected but also regarded as having ‘minority interest’ of
specific research on entrepreneurship in developing countries (Carter and Marlow, 2007:7,
Makombe, 2006:10). This stresses the earlier evidence that the number of studies on female
entrepreneurship in developing countries is even fewer. This work is also driven by the fact
that the researcher was involved in voluntary work, assisting women to form groups to
obtain micro-credit, where a number of interesting issues that required more investigation in
order to understand how women undertake their entrepreneurship activities in rural Tanzania
were disclosed (Ssendi and Anderson, 2009). The researcher also wants to know if there are
any underlying factors which may impact women from different parts of the country when
undertaking their entrepreneurship activities. Therefore, there is a need to understand the
process, activities and experiences of individual rural female entrepreneurs.

10
1.5.1 Importance of entrepreneurship to Tanzania

The importance of entrepreneurship in developing countries like Tanzania cannot be over

emphasized. When opening the Seventh Conference of the ruling CCM party women’s wing,
the President of Tanzania said:”…Tanzanians are poor, but women are the poorest.
Therefore they need special and specific conducive environment in order to remove
themselves from poverty and other life hardships. The government recognizes that women
are good entrepreneurs, trustworthy and they work very hard. What they need is to work
together, capital and entrepreneurship and business education” (Nipashe Daily newspaper
7th January 2009).

A study by SIDO - GTZ (1996) in Tanzania shows that in the informal sector, employment
growth has increased threefold and it is estimated to grow at an average of ten percent per
annum. However, parallel to the increase in number of enterprises in the informal sector,
there is evidence in the decrease of the average size of enterprises. According to Olomi
(2009) for example, the 1984 entrepreneurship survey shows that there was a total of 6,520
enterprises in Dar es Salaam alone with an average of 5.2 workers. The survey conducted in
1994 showed about 211,000 enterprises with an average of 1.5 workers. Also, the average of
enterprises undertaken in permanent structures declined from 71.2 percent in 1984 to thirty
percent in 1991, which implies that the degree of informality has also increased. With the
increase in the contribution of micro and small businesses to the Tanzanian economy, the
situation shows how large the area of research problem is in terms of employment and
financial well being of the people in Tanzania. The researcher thus thinks addressing this
research problem at this time and place is appropriate and useful.

1.5.2 The choice of research topic

Tanzania as a developing country has many social problems which need to be addressed.
There are a number of entrepreneurship topics which could have been chosen for this study.
The choice of the topic is purely based on the researcher’s interest. According to Perry
(1998:1-2), the choice of research topic should ideally be the one which interests the student
for him or her to endure many years of hard and solitary work. If possible, it should be built
on previous studies and it should be in ‘warm’ areas of research activity, rather than areas in
which a lot of research has been done, or where the research interest is diminishing. The
research topic should be in the mainstream field and not at the margin, or in between two

11
mainstream fields. It makes it easier to find supervisors and examiners if you are near
mainstream fields of research.

The chosen topic should be one which produces results within the shortest period and within
the available research resources. The study should have access to sources of data
(respondents). The topic should continue the academic debate in the field and open further
research after completion of the PhD programme. The process of doing the PhD programme
should provide skills and information which may assist in seeking an academic or non-
academic job. In this case, the choice of the topic on rural women entrepreneurs is expected
to benefit rural women and stakeholders in developing countries in general and Tanzania in
particular

The researcher has always admired women who have excelled academically and as a result
were given opportunities to serve women and society in general. These women have excelled
in their own countries and worldwide. Examples are Dr. Gertrude Mongella, who was a tutor
at Chang’ombe Teachers College in Tanzania, and now the president of the African
parliament and was the Secretary General of the Beijing Women’s Conference in 1985; Dr
Asha-Rose Migiro who was the Governor, Minister for Community Development, Women
and Children Affairs and Deputy Secretary General of the United Nations. The last example
is Professor Anna Tibaijuka who was a lecturer at the University of Dar es Salaam, Under-
Secretary General of the United Nations and Director of the United Nations Human
Settlements Programme, and currently serving as a Member of Parliament and cabinet
minister in Tanzania. These Tanzanian women have inspired me to undertake this study to
the best of my ability.

1.5.3 The position of the Study with relation to others

There are studies which have been conducted in Tanzania; however I will mention a few
which are related with the present study. Ssendi and Anderson (2009), using a survey
approach to study the role and impact of micro-finance for poor rural women in Tanzania,
found that there were some benefits in improving the profitability of micro-enterprises run
by rural poor women. However, they found that there was no evidence of permanent
improvement in their well-being in terms of additional household assets.

12
Makombe (2006) studied women entrepreneurship development and empowerment in
Tanzania using both qualitative and quantitative methods. He found that some women from
Women Entrepreneurship Development (WED) supported programme, were able to buy
assets as a result of the positive impact of entrepreneurship development programmes.
However, most of the women had no control over their assets as they still needed permission
from their husbands to sell them.

Stevenson and St-Onge (2005), in their study of support for growth-oriented women
entrepreneurs in Tanzania, found that there was no recent national wide data on the number,
size, make up and socio economic involvement of women. No data on women business
entry, survival and performance was available. Data on comprehensive demographic
profiling of women who own enterprises and their enterprises was missing as well.
Furthermore there were limited studies on the factors affecting business start-up for the
women entrepreneurs.

1.6 Methodology Overview

Although the methodology for the study will be described and justified in chapters three and
five, this section gives an overview of the chosen methodology. In the process of achieving
the stated study objectives; this study is conducted using a qualitative methodology. Many
previous studies were done using empirical data from surveys. The phenomenon under
investigation requires an appropriate methodology and methods in order to obtain the
required information which in turn will aid in understanding rural female entrepreneurship in
that research context.

An ethnographic case study approach is used to collect data, although other approaches could
have been used. A survey would have been quicker and less labour intensive, but because the
purpose of the study is to understand how poor rural female entrepreneurs undertake their
entrepreneurial activities, the chosen methodology and approach were much preferred. As
noted earlier primary data were collected from three villages: Kongowe, Ruvu Darajani and
Patandi. Observation, interviews, conversations and life stories were used to gather the
required information. Secondary data were collected from various publications and reports
from village to central government level. Descriptive accounts were presented, data was
analysed and then an interpretation was made. Within case and cross case comparison was

13
done in order to deepen the understanding of the phenomenon rather than looking for
physical and visible differences or similarities which existed between the two study areas.

1.7 Delimitations of scope

The key boundaries were first introduced in section 1.2. Other boundaries to the study will
concern the literature which is used for the study. The study was conducted in mainland
Tanzania and the data were collected with reference to entrepreneurship in mainland
Tanzania. The sources of information will also include, amongst other sources, reports, and
research papers. Entrepreneurship was chosen because of its importance to the people of
Tanzania. The settings chosen represent one of the poorest regions in Tanzania and one of
the better-off regions, although still very poor by western standards (Ssendi and Anderson,
2009). As noted earlier the differences between the two regions will aid in understanding the
phenomenon under study.

This study attempts to understand the entrepreneurial life of respondents. It focuses on how
socio-cultural factors impact the way poor rural female entrepreneurs undertake their
activities in Tanzania. The study investigates women from two villages in Pwani and one
village in the Arusha region who undertake their entrepreneurship activities in the village
markets. The study will also consider women who, for one reason or another, were not
undertaking entrepreneurship activities at that particular time. The study is therefore aimed at
providing a basis for policy directives and practice appropriate for the improvement of
entrepreneurial performance; not just in Tanzania but also in other developing countries.

This research was restricted to three village markets which by the nature of operation seemed
to be appropriate for the research. The village market is the area of the village where a large
number of people gather and interact. Most people in the villages meet and conduct their
activities in these markets. Although there are other women across villages who operate
businesses, this study focused only on women found doing their business within the market
and its surrounding areas.

The unit of analysis for this study are the individual poor rural female entrepreneurs who are
operating within and around the market area. It involves the women operating small
businesses. Although some of the respondents had more than one business, they were only

14
examined on the businesses they conducted within the village market and also they shared
experiences in other businesses as part of their life histories.

Bearing in mind that this study adopts a qualitative approach and interpretative design, it
may be faced with subjective limits. Therefore the main focus of the study will concentrate
on providing a deeper understanding and insight into the phenomenon studied. Hence the
research material gathered can contribute to the existing empirical and theoretical evidence
and provide future research opportunities in the area of entrepreneurship and in particular to
poor rural female entrepreneurs in the context of developing countries. There is always
tradeoffs and a series of limitations when adopting qualitative approach or indeed in any
study whether qualitative or quantitative. When using this approach, you are trading off
generalizability in contrast to that of quantitative approach where you trade off the depth of
understanding for the scope of the study. Thus, in all research decisions and research designs
aspects, you give up one thing because you are interested in another.

1.8 Outline of the research

The overview of this thesis includes a review of the pertinent literature, the research
objectives, the design, methods and procedure. Moreover the thesis addresses the data
analysis techniques, ethical issues and the implication of the study. This thesis is divided into
eight chapters. Chapter Two examines the research setting i.e. Tanzania. It is devoted to
discussing the historical, political and economic contexts. Moreover, it considers the socio
cultural influences of a developing country like Tanzania. Chapter Three presents a critical
review of pertinent literature, the relevant literature on entrepreneurship in general, and
women entrepreneurs in particular. Chapter Four discusses the methodology used in
undertaking this study. Chapter Five describes the theoretical framework for analyzing data.
Chapter Six presents the descriptive accounts of the findings and contextualising of the
study. It discusses the findings and the overall interpretation of the findings. Chapter Seven
discusses the findings in relation to how poor rural female entrepreneurs undertake their
activities in Tanzania. Lastly, Chapter Eight presents the conclusions from the study
findings, the recommendations and policy implications of the study. The following figure
summarises the chapters in this thesis.

15
Figure 1: Thesis outline

INTRODUCTION

Issues and prepositions

Justification
BACKGROUND RESEARCH PROBLEM
Methodology
Scope

RESEARCH SETTING

LOCATION OF STUDY AREAS Entrepreneurship Development ECONOMY OF TANZANIA

AND STATUS OF WOMEN

LITERATURE REVIEW

ORIGIN OF Rural Female FEMALE

ENTREPRENEURSHIP Entrepreneurship ENTREPRENEURSHIP

STUDY FRAMEWORK

PHILOSOPHICAL
ASSUMPTIONS Sustainable Livelihood THEORETICAL
ASSUMPTIONS

METHODOLOGY

ETHNOGRAPHIC CASE JUSTIFICATION AND

Qualitative STRATEGIES
STUDY

DESCRIPTION OF FINDINGS

ENTREPRENEURIAL Preliminary Analysis FEMALE ENTREPRENEURS

ACTIVITIES

INTERPRETATION AND
DISCUSSION

CONCLUSION AND
IMPLICATIONS

1.9 Conclusions

In this first chapter the researcher has laid the foundations for the research. She has provided
the background information about the study, introduced the research problem and research
issues and propositions, justification for research was also presented. The overview of the
methodology was briefly described. The scope of the study was given and the research was
outlined. Based on these foundations, the researcher will proceed with the detailed
description of the process of undertaking this research.

16
 CHAPTER TWO

RESEARCH SETTING: TANZANIA NATIONAL CONTEXT

2.0 Introduction

This chapter provides a description of the Tanzanian national context with emphasis on
location, population and economy. The study areas are identified and discussed, as are
entrepreneurship development and women’s participation. The discussion also focuses
extensively on literature about Tanzania’s politics and economics, the implications of
colonial and post-independence government policies, the administrative structure, legal
systems, education and culture. It discusses the impact these factors have on entrepreneurial
activities, and, more specifically, rural female entrepreneurship.

2.1 Location of Tanzania

The United Republic of Tanzania is located in Eastern Africa, between longitude 29, 41
degrees east and latitude 1, 12 degrees south, with the Indian Ocean to the east, and includes
the islands of Zanzibar, Pemba and Mafia. It is bordered by Uganda and Kenya to the north,
Burundi, Rwanda and the Democratic Republic of Congo to the west, and Malawi,
Mozambique and Zambia to the south (URT, 2011). The republic was formed out of a union
of the two sovereign states of Tanganyika and Zanzibar. Administratively, Tanzania is
divided into thirty regions; twenty five in the mainland and five in Zanzibar. There are 130
administrative districts, with 120 on the mainland and ten in Zanzibar.

Among the five East African countries, Tanzania is the largest. It occupies a total area of
945,087 square kilometres, of which 886,037 square kilometres are land and 59,059 square
kilometres are water. The topography of Tanzania is relatively flat, with low altitude along
the coast. However, high altitude landscape is found in the southern and northern highlands
with an average of about 1200 meters (4000 feet) above sea level. The volcanic Kilimanjaro
(5895 metres/19,340 feet), the highest mountain in Africa, is found adjacent to the north-
eastern border with Kenya. Three great lakes of Africa lie on the borders of the country and
partially within it. Lake Tanganyika, the second deepest in the world (772.4 metres) is found

17
on the west, Lake Victoria on the north, and Lake Nyasa on the south. Figure 2.1 shows the
location of Tanzania in relation to neighbouring countries.

Figure 2.1 Map of Tanzania

Source: National Bureau of Statistics

18
2.2 Tanzania population
Tanzania is estimated to have a population of about 39.5 million people and approximately
74.5 percent of the total population live in rural areas (URT, 2008). The population of
Tanzania is not evenly distributed. High population densities are found in fertile soils around
Mount Kilimanjaro and Lake Nyasa shoreline. Other parts of the country have relatively low
population density (Madulu, 2002:2&7). HIV and AIDS have been negatively affecting the
population in Tanzania, as it is the case in other developing countries. Tanzania’s HIV/AIDS
prevalence rate is approximately eight percent and the disease has claimed more than
140,000 lives (Global Insight, 2005). Malaria continues to be the number one killer disease,
accounting for seventeen percent of all deaths and approximately thirty percent of all
hospital visits (NBS, 2007).

The population of Tanzania consists largely of more than 120 black African ethnic groups,
the majority of which speak the Bantu languages as their vernacular. About a third of the
total population follows customary religious faiths. Two thirds of the population follow the
two main religions, namely Islam and Christianity. Islam is particularly dominant in coastal
areas and Zanzibar (TGNP, 2007:54).

2.3 Regions of the study

As explained earlier this study was conducted in two regions in Tanzania, namely Pwani,
which is the main study location and Arusha which is used as a comparison area. These
regions have more or less similar resources, but different socio cultural practices.

2.3.1 Pwani region

The Pwani region is located along the eastern coast of Tanzania. It comprises of six districts,
namely Bagamoyo, Kibaha, Kisarawe, Mafia, Mkuranga and Rufiji. It has a population of
889,154 and a total area of 32,407 square kilometres. In terms of population, 440,161 are
male and 448,993 female (URT, 2003).

The natives of Pwani and Dar es Salaam regions are commonly referred to as the Zaramo.
The Zaramo are made up of clans of Kutu and Luguru that migrated from Morogoro region
around 1700s. There are five major ethnic groups within the Zaramo, namely Kami, Kutu,
Kwere, Ndegereko and Rufiji. The Zaramo language is mutually intelligible with that of the

19
Kutu, Luguru, Kwere and Kami. However, most of the Zaramo speak Swahili which is the
national language of Tanzania. The Zaramo have strong beliefs in tradition norms.

The medicine man or mganga is among the most powerful figures in the Zaramo traditions.
As a spiritualist he has the power and position to function as the preserver of the Zaramo
culture. His judgements and practices are entirely based on the concepts of spirit forces,
witches, the power of sorcery and clan taboos (www.everyculture.com ). Even with changes
in their social environment as a result of interactions with different cultures, the Zaramo
fundamentally insists on the powers of sorcerers and spirits, thus, they maintain to consult
the mganga (www.everyculture.com).

Economically, the Zaramo are basically subsistence farmers even though they have plenty of
fertile soils. To the Zaramo, plant life has more significance than animal life as their food
comes mainly from agricultural activities. It is believed that the Zaramo grow more fruit
trees, mainly oranges and mangoes, than other inland tribes. Coconuts are also grown for
both home consumption and sale. Cashew is grown along the coast and at one point was the
major cash crop for the Zaramo. Rice is also grown extensively by the Zaramo as food and a
cash crop with a few numbers of livestock due to tsetse fly infestation. Zaramo were
involved in long distance and the slave trade in the 19th century and it is also believed that
they were expert slave hunters (www.everyculture.com).

2.3.2 Arusha region

Arusha region is located in the northern highlands bordering Kenya. It comprises five
administrative districts namely Arumeru, Arusha, Karatu, Monduli and Ngorongoro. It has a
total area of 36,486 square kilometres with a population of 1,292,873, of which 638,261 are
male and 654,612 female (NBS, 2007). Arusha region is a popular tourist destination and it
serves as the East African Community headquarters. There are mainly four tribes in Arusha
region.

The Masai tribe dominates a large area in Arusha and the Masai area in Kenya. In Arusha the
Masai tribe is divided into two groups: the Masai and the Arusha. The Masai keep cattle in
large numbers, and practise a nomadic lifestyle. On the whole they are found in places where
population density is low. The Arusha are found mostly in highland where they practise

20
small-scale mixed farming (www.geocities.com). The other tribes are Meru, Mang’ati and
Mbulu.

The Meru people moved from Machame area on the slopes of Mount Kilimanjaro to start
new farming settlements on the southern slopes of Mount Meru. They planted bananas and
beans in small established fields on the base of the mountain. As time went on, they
expanded up the mountain as their families grew, and they were joined by the Chagga
refugees who escaped from political struggles in nearby Kilimanjaro region (Spear, 1997).

The Mang’ati, commonly known as the Taturu or Barabaig, are a sub-tribe of the Datooga
people. They are thought to originate from southern Sudan or the western Ethiopian
highlands. They are mainly pastoralists residing on the slopes of the northern volcanic
highlands. Apart from being herders, they have recently diversified to include agriculture in
their daily lives. Traditionally, they have a reputation as fierce warriors, as young men must
kill what they call ‘enemy of the people’ that is, any human being other than a Datooga or
one of the dangerous animals such as a lion or buffalo to prove themselves (Jenkins, 2008).
Their culture resembles that of the Masai in most aspects. In their culture, any animal and
animal part or product has either practical or ritual purposes. The Mang’ati are very
conservative to their culture, including belief in Christianity or Islam, maintaining a strong
adherence to traditional animalistic beliefs and practices (Jenkins, 2008).

The Mbulu, mainly Iraqw, are Cushitic people, who speak a south Cushitic language
belonging to the Afro-Asiatic family. They mostly live in the Mbulu highlands where
intensive cultivation is locally developed. They are very different from the Masai and the
Meru. They use sophisticated agricultural practices such as contour farming to limit soil
erosion, improved irrigation techniques, crop rotation, zero grazing and application of
manure to maintain soil fertility and productivity. Usually, an Iraqw household keeps some
livestock, such as cows, sheep, goats and chickens. Pigs and donkeys are often raised for sale
and transportation respectively (www.everyculture.com). Black-smithing, which is practised
by few Iraqw, is a male profession. Pottery and reed mats making is the domain of women,
these are sold in towns. The cattle markets are an important entity in economic activities
among the Mbulu as they earn income from selling cattle at these markets.

21
Culturally, the Mbulu are quite flexible. Christianity has gained wide acceptance in Iraqw
society compared to Islam although some of the pre-colonial beliefs are still maintained. For
example, Lo’a, a female God is still linked with the sky, Netlangw, or earth spirits are still
believed to live in stream beds and springs. However, witchcraft is not a famous practice of
Iraqws, but they do believe that some people are capable of practicing witchcraft to bring
misfortune upon others through the manipulation of animals (www.everyculture.com).

2.4 The economy of Tanzania

External trade in Tanzania dates back as far as 900 AD, when traders from south-west Asia
and India settled on the coast to exchange manufactured goods for ivory and African slaves.
By about 1200, Kilwa Kisiwani became a major trade centre, where gold exported from
Sofala in Mozambique and goods (ivory, beeswax and animal skins) from the inland
Tanzania were handled.

When the Germans came, several new crops such as sisal, cotton, and plantation-grown
rubber were introduced. The Germans built railroads from Dar es Salaam port to Kigoma and
to Moshi for easy transport of agricultural products from the inland (www.infoplease.com).
After World War I, the British developed the territory's economy basing largely on the
foundations laid by the Germans. For example, to increase agricultural production, that
resulted to the accelerated economic growth (www.infoplease.com). However these efforts
did not improve Tanganyika’s economy.

Tanzania became independent in 1961 despite having a severely under developed economy
and extremely limited infrastructure (URT, 2008:10). After independence, Tanzania
identified three enemies of development, namely poverty, ignorance and disease.
Government policies, therefore, focused on how to combat these three enemies. However,
these policies did not perform as it was expected. According to NBS (2007), after
independence to 2000 there was a marginal increase of the per capita income of Tanzanians.
That is, over that period real incomes (corrected for inflation) rose by twenty-two percent,
which is less than 0.5 percent per annum, (NBS, 2007:21). Because of the failure of these
policies a new strategy was put in place.

In February, 1967, there was a major change in the economic policy in Tanzania. The Arusha
Declaration policy called for fairness, socialism and self-reliance. The government was

22
decentralized and a programme for rural development called ujamaa (“pulling together”)
was underway that resulted into the formation of ujamaa villages and ujamaa village farms.
The factories and plantations owned by foreigners were nationalized (Makombe, 2006:18)
and major investments were directed towards primary education and health care.

Government cooperative enterprises were formed to run all nationalized business ventures,
where emerging bureaucratic elites were made managing directors. During the government-
controlled economy era, local individuals were discouraged from undertaking any
entrepreneurial activities, furthermore all government workers and political party leaders
were not allowed to get involved in any private entrepreneurial activities under the Economic
and Organized Crime Control Act of 1984, Human Resource Deployment Act of 1983, and
the Leadership Code of 1969 (Makombe, 2006). Since the majority of educated Africans
were civil servants, entrepreneurial activities were left to illiterate indigenous and the Asians
and those indigenous people without much education (Temu, 1997). After operating in a
difficult environment of government-controlled economy for many years, Tanzania suffered
a serious economic crisis at the end of the 1970’s. The real purchasing power of the country
and crop prices dropped drastically. The Tanzania -Ugandan war of 1978 and the failure of
the Ujamaa policy itself in economic terms brought the country to the verge of bankruptcy
by the mid 1980’s (www.infoplease.com). All these put together had forced government
workers to engage themselves in petty business activities to supplement their incomes, while
the peasants had diversified their income source by starting small business within their rural
areas, or migrated to urban areas (Omari, 1991).

In 1986, Ali Hassan Mwinyi, President of Tanzania after Mwalimu Julius Kambarage
Nyerere, began an economic recovery programme that indicated a twist in the economic
direction. The programme involved cuts in government spending, de-control of prices, and
encouragement of foreign investment (www.infoplease.com). This new policy helped the
economy to grow ahead of the population growth in 1990s (Pinaud and Wegner, 2005).

Following the IMF and World Bank’s Economic Recovery Programmes, the government
liberalized trade and virtually all sectors of the economy. This resulted in massive
retrenchment of civil servants and workers at other public institutions, leading to high levels
of unemployment, particularly for school leavers, resulting into homelessness, environmental
degradation, increased crime and corruption (TGNP, 1999:25). During this period many

23
people were not able to find salaried jobs, even those who were employed had to find other
means of increasing their income. For that case many opted to run small informal enterprises
in the private sector in order to have financial capability to survive.

Tanzania’s economy since independence to the mid 2000s was heavily dependent on
agriculture, which accounted for approximately 44.5 percent of GDP (at constant 1992
prices) in 2004 (URT, 2005a), eighty percent of the labour force and eighty-five percent of
export earnings. Despite these figures, topography and climatic conditions have limited
cultivation of crops to only four and half percent of Tanzania’s total land area; whereas
permanent crops account for one percent, meadows and pastures forty percent, forest and
woodland forty-seven percent and other uses seven percent (Kida, 2001). Most of the main
cash crops, i.e. coffee, cotton, tobacco and cashew nuts, are grown on smallholding farms,
although tea and sisal are cultivated on commercial estates. The main food crops are maize,
cassava, sorghum, rice, millet and plantains. Despite agriculture being the major occupation
of most Tanzanians, especially in the rural areas, its contribution to the nation’s GDP has
fallen drastically due to the decline in agricultural production and productivity (URT, 2008).
The GDP contribution (at current 2010 prices) was twenty six percent forestry and
agriculture, two percent fishing, twenty four percent industry, housing and construction and
forty eight percent services (NBS, 2011).

In 2007, Tanzania was ranked 95th according to the World Development Indicator Database
in terms of GDP (World Bank, 2009). According to a 2007 economic survey, GDP in real
terms grew by 7.1 percent compared to 6.7 percent in 2006. The GDP amounted to 20 948
403 million TZS in 2007 at current prices, or 13 801 921 million TZS at 2001 constant
prices. Per capita income was 548 388 TZS (422 US dollars) in 2007 at current prices, or 361
307 TZS (278 US dollars) at 2001 constant prices (URT 2008). This shows that there has
been an increase of 14.6 percent in per capita income at current prices.

However, these economic indicators do not necessarily show an improvement in the standard
of living of ordinary Tanzanians. For example, there has been a huge reduction in paid
employment in both the private and public sectors, especially for the poorer middle classes,
as a result of the economic reform programmes of the 1990’s, and the cost of living has risen
due to introduction of cost-sharing in basic social services delivery (Makombe, 2006:17) as
people are required to pay a part or a full amount of medical and education bills. Moreover,

24
the situation in rural areas is becoming increasingly worse both socially and economically
due to rising production costs and diminishing returns (Mbilinyi, 1999:9).

At present, the small and medium enterprises (SMEs) sector is the main employer of the
majority of Tanzanians, just behind subsistence agriculture. According to a study
commissioned by ILO in 2002, it was estimated that there were more than one million
SMES, which employed between twenty percent and thirty percent of the total labour force
(ILO, 2002:6). However, most of the enterprises are found in urban areas, leaving the
majority of the rural population poor and with limited opportunities to start enterprises
(NBS, 2007). This situation brought about substantial differences between the rural and
urban poverty levels.

It is believed that in most cases, the education level of the head of the household may have
an impact on the wellbeing of the household. Thus, the household headed by the educated
person is believed to be better off compared to the household headed by uneducated person
(NBS, 2002). Farmers are believed to be more impoverished compared to other
professionals, as are women compared to men. In rural areas it is less likely that people live
in modern housing, are connected to electricity grid or own consumer goods (NBS, 2002).
According to 2000/01 HBS, the rural population has the lowest average expenditure and
highest level of income poverty (NBS, 2002). There are also regional differences in terms of
housing conditions, facilities and school enrolment. Welfare indices show Dar es Salaam,
Kilimanjaro, Arusha and Mbeya are far better; while Shinyanga, Singida, Tabora, Pwani,
Tanga, Mtwara, and Lindi regions are worst off (NBS, 2002).

Apart from having different socio cultural settings, the two study regions have also
remarkable difference in socio economic indices, where Arusha shows the best indicators
while Pwani the worst indicators. Table 2.1 shows some of the socio-economic indicators of
the two regions as compared to the national averages.

25
Table 2.1 Socio-economic indicators of the Pwani and Arusha regions

Tanzania
Indicator Pwani Arusha Mainland

Households in dwellings with a roof of modern 33 53 42.8

materials (%)

Households in dwellings with modern walls (%) 6 18 13.2

Households with mains electricity (%) 6 11 10

Households with no toilet facilities (%) 3 16 7.1

Mean distance to a bank in km 28.1 16.7 30.45

Women in rural areas with any education (%) 44 70 58.8

Adult literacy in any language (%) 61 78 71

Households within 2km of primary school (%) 66 54 26.3

Mean distance to secondary school in km 13.1 6.4 12.6

Households using improved water sources (%) 35 59 39.3

Population below food poverty line (%) 27 25 18.7

Population below the basic needs poverty line (%) 46 39 35.7

Sources: Extracted from NBS, 2002: HBS 2000/01 and URT, 2008: Economic

Survey 2007

These indicators are also clearly reflected at the district level, where Kibaha and Bagamoyo
seem to be worse off compared to Arumeru. The table below shows some of the indicators
based on 2002 household budget surveys for Arumeru, Bagamoyo and Kibaha.

26
 Table 2.2 Socio economic indicators for Arumeru, Bagamoyo and Kibaha
districts
District Arumeru Bagamoyo Kibaha

Total population 516, 814 230, 164 132,045

Population below poverty line (%) 18 40 32

Female-headed households (%) 33 29 28

People aged 15 and above who are literate (%) 79 63 74

Females aged 15 and above who are literate (%) 74 54 66

Households using piped or protected water source 85 31 60

(%)
Rural households using piped or protected water 82 22 28
source (%)
Households using flush toilet or improved pit 5.0 1.5 5.0
latrine (%)
Households with electricity (%) 11.4 6.0 10.2

Households with poor quality walls (%) 50 84 60

Households with poor quality roofing (%) 22 64 34

Infant mortality rate (per 1000 live births) (%) 41 105 98

Under five mortality rate (per 1000 live births) 58 174 160
(%)

Source: URT, 2005a: Poverty and Human Development Report, 2005

At these indices female headed households are believed to have less percentage of socio
economic indicators.

27
2.5 Women in Tanzania

According to Geiger (1990), in Tanzania, as in many developing countries, historians,

political scientists and other professionals have failed to appreciate women’s contribution
towards the fight against colonialism. It is argued that during the colonial era, African
women were not recognized by colonial rulers as valuable human beings. African women
were considered invisible creatures, living in unknown places under men’s controlled
empire. According to colonial ideology, rural and remote areas were seen as the best place
for women (Geiger, 1990).

As indicated in Chapter One, women constitute fifty-one percent of the total population,
seventy-seven percent of people who live in rural areas (NBS, 2007). Although poverty is
widespread in rural areas, many societies remain traditionalist on gender issues. In Africa,
women are the poorest social group, despite being the main producers of food crops
producing about seventy-five percent of the continent’s food. Women in Africa are said to be
the backbone of their economies (TGNP, 2007:1).Apart from production of food and cash
crops they are also responsible to ensuring the well being of their families in terms of
provision of food, clothing and sometimes shelter (Charlayne, 2006).

In Tanzania, about sixty percent of women live in absolute poverty. They are found in the
rural areas and poor urban suburbs where they carry heavier household burdens and they are
deprived their rights, such as property rights and lack adequate knowledge about existing
support services, like credit facilities (URT, 2005a; Brain, 1976:266). Women are said to
have low education level, that leads to poor knowledge and skills about time and work
management. As noted earlier women spend a lot of time and energy in performing their
activities because they use poor and inefficient technology (TGNP, 1997:32).

Because customary and Islamic laws are recognized by the Government and courts, women
are subjected to discriminatory restrictions on inheritance and property rights (TGNP,
1997:38). Discriminatory practices against women are more dominant in rural areas, where
women are demoted to farming and raising children; and in most cases they stand absolutely
no chance of obtaining paid employment (TGNP, 2007:54-55). The patrilineal system is
widely practised in Tanzania, except for some ethnic groups in central-eastern and south-
eastern Tanzania which still follow matrilineal kinship (Kimambo and Temu, 1969). Under

28
patrilineal societies, the basic role of women is to produce and reproduce for the husband’s
lineage (Mbilinyi and Shundi, 1999). Most traditions and customs hinder women from
owning property and land, overriding laws that provide for equal treatment.

Female Genital Mutilation (FGM) affects eighteen percent of the female population (NBS,
2006). In some ethnic groups, FGM is an important cultural rite such that in some cases a
woman who has not undergone this ritual may not be able to marry. Although FGM is
prohibited by law, some ethnic groups still practice it at an early childhood in about twenty
of the country’s 130 main ethnic groups (NBS, 1996). Most affected regions are Arusha
(eighty-one percent); Dodoma (sixty-eight percent); Mara (forty-four percent); Kilimanjaro
(thirty-seven percent); Iringa (twenty-seven percent); Tanga/ Singida (twenty-five percent)
and Morogoro (twenty percent) (NBS, 1996).

Due to increased violence against women, the government has put in place a law to protect
women against violence, the Sexual Offences Special Provisions Bill (1998) which, among
other things, provides life or 30 years imprisonment for persons convicted of rape and child
molestation (www.tanzania.go.tz).

The status of Tanzania’s women has been changing over time. Women have changed the
nature of rural subsistence farming. They are seen to become directly involved in the process
of proletarianization (Bryceson, 1980). According to URT (2005b), in Tanzania there is an
increase in female-headed households because of the deaths of their partners, especially due
to HIV&AIDS epidemic or broken marriages (URT, 2005b). Because of globalization and
structural adjustment programmes, many men who were breadwinners for their families
faced layoff from their job due to privatisation (URT, 2005b). That resulted into frustrations
for both workers and peasants because they could not generate enough income from their
jobs or produces; as a result they released their anger by victimising their partners. This in
turn led to children being raised without both parents.

Gender patterns in employment, farming and non-farming activities have also changed in
Tanzania. Many women have become active in business related activities and have become
more responsible to provide for the cash needs of their households. Gender relations and
responsibility have been changing at the workplace in Tanzania. While employment
opportunity in the formal sector (for both men and female) is very limited because of

29
economic crisis and restructuring programmes, women have decided to engage themselves in
the informal sector by running small businesses in order to ensure their household’s income
(Mzinga and Rusimbi, 2003).

This twist in the women’s role can be attributed partially to Tanzania's participation in the
1995 United Nations Fourth World Conference on Women in Beijing; as the conference
stressed equal rights for all which is in line with the Tanzania’s constitution that disapproves
any kind of discrimination based on sex and recognises gender equity and equality (Mzinga
and Rusimbi, 2003).

Women have been leaders in expanding micro and small enterprises, commonly referred to
as the informal sector (www.tanzania.go.tz ). However, their legal and human rights are
constrained by inadequate legal framework as the existing legal system does not reach the
majority of women who live in rural areas (Makombe, 2006:29). To overcome this situation,
Tanzania has been the leading country in creating a favourable legal environment and
political context for gender equality (Ellis, et al, 2007:1). Tanzania has committed itself to
enhancing women’s economic capabilities by ensuring easy access of credit facilities to the
majority of people. Ensuring they attain entrepreneurial and technical skills which in turn
would enable them to manage their businesses better (Makombe, 2006:28-29). A number of
NGOs and donor organisations have made serious efforts to advance credit to women at
village level (www.tanzania.go.tz).

2.6. Entrepreneurship development in Tanzania

This section discusses the evolution of entrepreneurial activities in Tanzania before, during
and after the colonial era. It provides a brief discussion on the trends and nature of rural and
women entrepreneurship in Tanzania.

2.6.1 The history of entrepreneurship in Tanzania

In the 19th century before colonial rule, there were local and international trades as well as
cottage industries, like weaving, blacksmithing and woodworking (Koda, 1997:30).
However, these entrepreneurial activities were suppressed and suffocated by colonial
regulations (Geiger, 1990:16; Temu, 1997) as indigenous Africans were restricted from
engaging in business activities (Rugumamu, 1993). This restriction was in accordance with a

30
colonial legislation called the Credit to Native (Restriction) Ordinance of 1931 (Koda, 1997).
While these limitations applied to all indigenous entrepreneurs, it can be argued from a
gender perspective, as Koda (1997:34) does, that under such conditions, female
entrepreneurs were more disadvantaged than their male counterparts due to extant patriarchal
relations. At the time of independence, in 1961, Asians held more than two-thirds of the
trade volume while indigenous Africans held less than one-third (Honey, 1974). As far as
Africans were concerned, a typical entrepreneur was characterised by a lack of skill,
education and capital (Rugumamu and Mutagwaba, 1999). Under these conditions, female
entrepreneurs were worse off due to a combination of factors, such as colonial education and
training which contributed to gender imbalances in entrepreneurship development, as well as
cultural practices that denied women the right to inherit property, including land (Koda,
1997). The situation was worst in rural areas.

2.6.2 Rural entrepreneurship in Tanzania

Rural areas continue to provide a livelihood for the majority of the population, but poverty is
found to be more persistent amongst rural people, a much higher percentage falling below
the poverty line (URT, 2000). People in rural areas depend on productivity in agriculture and
non-farm activities for their livelihood and economic development (Mbilinyi, 1999). The
prospects of raising productivity in farm and non-farming activities deserve priority if
economic development is to be achieved. Non-farm enterprises are an important source of
livelihood for the majority of Tanzania’s rural population. In Tanzania rural non-farm
enterprises are different from those in the urban areas. According to the World Bank, rural
areas comprise of about one-half of the small enterprises, while the other half is found in the
rural suburbs (World Bank, 2007). Non farm enterprises are very small in such a way that
the majority are operated by one person most of the time; although during peak seasons
enterprises may employ part time or casual labour, mostly family members (World Bank,
2007). More than seventy five percent of Tanzanian rural enterprises are seasonal, this
typically constrains enterprise growth. Non farm enterprises in rural Tanzania operate locally
in the relatively thin markets (World Bank, 2007).

According to the Poverty and Human Development Report, the living standards of the rural
population need to be raised so as to have a more positive impact on the micro economy of
the country, and hence the macro economy (URT, 2005a). Rural development is dependent
on the growth rate of agricultural production in the rural sector. This implies that in order to

31
increase income for the rural community, there should be improved productivity in the farm
and non-farm sectors in the rural areas. Thus, non-farm and farm activities should
supplement each other in case one sector fails.

The provision of infrastructure and services is needed in the rural communities and is the
requirement for rural economic development. It includes access to social services, capital and
markets. As the population in the rural areas is growing faster (especially in Sub Saharan
African), there is an increasing pressure on the natural resources base, that is, the non-farm
alternatives are essential in those areas. For this reason, the agricultural production growth
alone cannot meet these rural challenges; so private entrepreneurs, women in particular, play
a great role as they link the non farm economy and agricultural sector, thus, contributing to
rural poverty alleviation (World Bank, 2008).

2.6.3 Women entrepreneurship in Tanzania

For many years, women have been known to be enterprising (Akinbami, et al, 2008). It is
believed that women’s entrepreneurship is expanding around the world such that women are
representing more than one-third of all people involved in entrepreneurial activity (Minnitti,
et al 2007). As in many African countries, women have started enterprises because it is the
only option to take in order to meet their basic needs or alleviate their poverty, rather than
actively pursuing business ventures through choice (Richardson, 2004:17). Women
undertake small businesses, and the majority are termed as reluctant entrepreneurs because
they are forced into business activities by external factors (ILO, 2003). Many women
entrepreneurs operate mostly in low growth areas that earn lower incomes with intense
competition compared to their male counterparts (ILO, 2003).

The economic changes in the modern world have changed the value of women in modern
society (Laukkanen and Nittykangas, 2003; Stein, 2007:54). Since World War II, there have
been changes which have forced women to enter the men’s world of workplace and business
ownership. These changes have made women and men more alike, to changed the way they
think and have forced them to adopt new ways of doing things (Raiser, 2001:2).

Many scholars argue that women’s participation in effective entrepreneurship is a recent

phenomenon in the world, especially in developing countries (Ufuk and Ozjen, 2001:299);
the same is true for rural Tanzania. In contrast to this, participation of women in

32
entrepreneurship activities in the urban areas started long ago, back in the colonial era. In
Dar es Salaam, for example, about thirty percent of rented houses in 1950 were owned by
women (Geiger, 1990:26). Major entrepreneurial activities were prostitution, local brewing
and fish selling (Geiger, 1990). Currently, the number of women involved in entrepreneurial
activities has risen rapidly in both urban and rural areas (Wilson, 2005:178). Statistics on
women-owned businesses in the United States, suggest that there has been a rapid increase in
the number of women starting new ventures compared to men, so narrowing the gap between
female and male owning businesses (Mueller, 2004:199). That is, women-owned businesses
represent thirty-eight percent of all businesses in the United States of America (Simonin,
2006:66). In Tanzania, almost eighty percent of people involved in micro and small
businesses are women, making at least one-third of all SME operators (Richardson, 2004:1).
Now women are moving away from traditional economic roles and moving towards starting
their own businesses (UNIDO, 2001).

As noted women entrepreneurs in rural areas are limited in what they can attain in terms of
knowledge and skills. Lack of these may limit how much of the support services they can
access (Rutashobya, 2000). Moreover, due to the culture and traditions of Tanzania, it
becomes difficult for women to start and run enterprises because as a woman she is expected
to play traditional roles as a housewife and a mother. To do a business, therefore, one has to
combine traditional roles with business activities that leave little energy and time for the later
(ILO, 2003). If they are given the necessary support, they have the opportunity to be
involved in the collective process of enterprise creation and development, thus improve their
success rates (UNIDO, 2001).

2.7 Conclusion

This chapter has discussed various issues about Tanzania. It has been noted that Tanzania is
a multicultural country with more than 120 black African ethnic groups. It has been shown
that women slightly outnumber men in the Tanzanian population, about fifty-one percent,
and about seventy-seven percent of which live in rural areas. A description of study areas
was also presented. Socio-economic indicators show that there is a significant difference in
social wellbeing between the two regions at regional and district levels, between the Pwani
and Arusha regions; on this aspect Arusha is better than Pwani.

33
It has been also noted that there has been a transformation of the economy, from agrarian
towards non agrarian. The post independence policies have also been discussed. It has been
noted that the economic crisis of the 1970’s was a result of these poor and bad economic
development policies. It is because of these policies that many people were forced to
undertake petty trading to supplement their income.

The position and role of women in the Tanzanian economy has also been discussed. It has
been shown that women in Tanzania still face some discriminatory restrictions in access to
productive resources. However, women have been identified to be the major players in SME
development and hence important contributors to the whole economy.

34
 CHAPTER THREE

REVIEW OF LITERATURE ABOUT RURAL FEMALE

ENTREPRENEURSHIP

3.0 Introduction

This chapter reviews the relevant literature on entrepreneurship with a focus on female
entrepreneurship in the context of a developing country. There are remarkable differences in
what is perceived as entrepreneurship in the western world and what actually the case in
developing countries is. The process of entrepreneurship and the experiences of female
entrepreneurs from these two different parts of the world differ greatly. This chapter will
look into the genesis of entrepreneurs and entrepreneurship, female entrepreneurship
development in Tanzania, especially in the rural areas and the analysis of rural female
entrepreneurship.

3.1 Origin of entrepreneurs and entrepreneurship

This section will discuss the genesis of entrepreneurs, entrepreneurship, and the perennial
issue of whether entrepreneurs are born or created.

3.1.1 Who is an entrepreneur?

The term “entrepreneur” is frequently used in economic matters, in academia, by mass

media, and also by ordinary people in their daily interactions. The word entrepreneur is said
to have originated from France long before there was a general concept of an entrepreneurial
function. As late as the sixteenth century men who were engaged in leading military
expeditions were referred to as entrepreneurs (Buame, 1996:81). In the 1800’s, a number of
writers and French economists gave a specific meaning to entrepreneurship and entrepreneur,
though with differences in the characteristics of the area of economic sector they were
interested in.

Just after the 1700’s, the term entrepreneur was largely applied by the French government to
imply civil engineering contractors in road works, bridges, and sometimes fortification
35
contractors and later on architects. It was the French economist Richard Cantillon (1755) and
Jean-Baptise Say (1805), who are reported to have first used the concept of ‘entrepreneur’ as
a technical one (Schumpeter, 1951). Cantillon has defined the entrepreneur as the agent who
organises factors of production with the intention of producing a new product or service
(Schumpeter, 1951). Say (1816) included the concept of leadership, that an entrepreneur is
one who brings other people together, in order to produce a useful commodity. Schumpeter
defined an entrepreneur as the person who is responsible for putting together all factors of
production to make quality products, and hence use the resources in low productivity to high
productivity areas. A person, who can efficiently organise these resources in pursuit of an
opportunity to add value, may develop the resources and become successful and hence, an
entrepreneur. An entrepreneur seemed to be a founder who adds value by offering a product
or service; and she should have strong beliefs about the market opportunity and should
organise available scarce resources in the optimum combination to achieve the output that
should modify the existing interaction (Schumpeter, 1951).

Some scholars see entrepreneurs as people who are willing to accept high levels of personal,
professional or financial risks to pursue that opportunity; but the growing evidence shows
that they are more passionate entrepreneurship experts than simply gamblers (Schumpeter,
1934). This implies that owning a small business alone does not necessarily classify a person
as an entrepreneur (Sexton and Bowman-Upton, 1990). Even if the risk bearing component
is incorporated in many current theories on entrepreneurship, the risk-bearer theory alone is
not sufficient enough to explain why some individuals become entrepreneurs while others do
not. While Mills and Marshall (1920) claim that special skills are required to participate in
entrepreneurial activities, Kirzner (1985:10) suggests that the necessary characteristic of the
entrepreneur is the ability to recognize opportunities.

One of the theories held is that entrepreneurs develop from the population where there are
different entrepreneurial opportunities and people are able and ready to take advantage of
them. From this view, two sides should be considered: the distribution of information
available to would-be entrepreneurs, and how environmental factors alter the rate of a
society’s production of entrepreneurs (Schumpeter, 1951). Moreover, Gartner (1985) have
pointed out that the art of organising and combining available resources of production into
products and services of a higher social value stretches to a wider range of spheres other than
economic means of production. That is, entrepreneurs, and entrepreneurial behaviour, can be

36
found in all forms of professions such as teaching, medicine, research, law, politics and
social work. Thus, there might be some other necessary characteristics that may help to
explain why some people are entrepreneurs and others are not.

From the above, the difference is that the entrepreneur is considered to be crucial to
economic development and a catalyst for dynamic change. Although it is agreed that
entrepreneurship is necessary for economic growth, the problem is, what is the actual role
that entrepreneurs play in promoting economic growth?

3.1.2 The role of entrepreneurs

It is believed that, Cantillon, was the first person to identify the central role of the
entrepreneur in economic development. According to him, out of the three existing classes in
society, the entrepreneurial class was the important class and was the central economic
player (Schumpeter, 1951); other two classes were the land owners and workers (Deakins
and Freel, 2003). Marshall sees the entrepreneurs as creators of commodities, that by
creatively organising resources, entrepreneurs can create new innovations or improve old
ones (Marshall, 1994).

On the other hand, Buame, sees an entrepreneur as a key player in the economy, and a
catalyst for economic transformation and development (Buame, 1996). In this way, the
entrepreneur should be able to identify entrepreneurial opportunities and make decisions, and
be ready and willing to accept the outcomes of his/her actions in combining different factors
of production in the production process (Deakins and Freel, 2003). This agrees with other
theories on entrepreneurship that consider the role of the entrepreneur to be that of taking
risks in case of unpredictable and unforeseen circumstances (Hill and McGowan, 1999). For
Schumpeter (1951), the role of the entrepreneur is that of an innovator; however, the real
meaning of innovation is still being debated. Leibenstein (1995) claims that the important
characteristic of entrepreneurs is that they are gap-fillers: they have the ability to coordinate
market demand and supply in order to satisfy the market requirements.

3.1.3 Can an entrepreneur be created?

There are a number of arguments and theories trying to explain the reasons some people are
more entrepreneurial than others and why people decide to start entrepreneurial activities.

37
Marshall claims that the abilities of the entrepreneur are vast such that many people do not
recognise them. He adds that all entrepreneurs differ and their success depends on the
environmental conditions in which they operate (Marshall, 1994). It is argued that economic
environment often limit the opportunities for entrepreneurs (Pasanen, 2005). From this point
of view, entrepreneurial activity is related to the presence of marginal groups, non-integrated
minorities, that contribute small amounts of entrepreneurs; for example, Dissenters in
England, Protestants in France, Chinese in South East Asia, Indians and Arabs in Africa
(Greenfield and Strickon, 1995). Because these groups felt discriminated and socially
marginalized, they tried to overcome this through their entrepreneurial activity in order to
achieve status (Cuervo, 2005)

Some authors have used planned behaviour theory to explain the firm creation decision
(Ajzen, 1991). They argue that the intention to become an entrepreneur is influenced by the
individual’s personal attitude, the perceived control over the firm creation behaviour, and
perceived social pressure to become or not to become an entrepreneur (Krueger, 2007;
Fayolle and Gailly, 2004; Fayolle and De George, 2005).

Conversely, role theory suggests that the role behaviour is a product of socialisation at
different stages of the individual’s life cycle (Thomas and Biddle, 1966). These scholars
believe that individuals learn through observation of role models (Scott and Twomey, 1988;
Scherer et al, 1990; Lent et al, 1994); role model’s behaviour influences both learned desire
and reality of the role for the individual (Krueger and Brazeal, 1994; Krueger et al, 2000)
and thus, if the role is a career role such as entrepreneur, role models direct expectations and
determination of the individual leading to intentions of pursuing that particular career (Lent
et al, 1994; Nauta et al 1998). Conclusively, according to the role theory, role models
influence entrepreneurial objectives by altering attitudes and beliefs (Krueger et al, 2000).
From these arguments, Dyer’s (1994) model of an entrepreneurial career claims that children
of entrepreneurs are more likely to be entrepreneurs than those of non–entrepreneurs.
Likewise, children with self-employed parents are likely to develop the desire to become
owners and managers of similar firms to that of their parents (Caroll and Mosakowski,
1987). To support this, Scott and Tomwey (1988) argue that if parents are entrepreneurial
role models, children will also perceive themselves as entrepreneurs. This self-perception,
coupled with a triggering factor and a business idea, will ultimately lead the children to
prefer an entrepreneurial career. However, other authors have argued that the performance of

38
role models was not as important as the very existence of the role models (Scherer et al,
1990). In the above notions of entrepreneurship, women were not included. Thus we can say
that entrepreneurs are both born and created. However, for this type of entrepreneurs under
study they are created and manipulated by external factors; mainly social and cultural
factors.

3.1.4 Genesis of entrepreneurship

The concept of entrepreneurship is universal and this study discusses the genealogy of the
concept. Sociologists have described entrepreneurship as the process of generating income
from property and other personal assets like capital, land and labour for productive reasons.
On the other hand, psychologists have described it as a situation where the entrepreneur can
assert his own control with a sense of independence (Brockhaus and Horwitz, 1982:43).The
importance of entrepreneurship in production was first formally documented by Alfred
Marshall in 1890. He identified four factors of production; namely: land, labour, capital and
entrepreneurship. Marshall considered entrepreneurship as a central factor that coordinates
the other factors of production together, and he believed that entrepreneurship is the high
level decision-taker within the organization (Marshall, 1994). Marshall also believed that
entrepreneurs must have enough knowledge of their businesses and they must have natural
leadership qualities. Moreover, according to him, entrepreneurs must have the ability to
foresee changes in the market conditions and be responsible for the outcomes of their
decisions. The main element here is that of risk taking and adventurous undertakings. Hence,
from this usage, it was easier to apply the concept of entrepreneurship to other types of
adventures.

Since the Marshall’s era, the concept of entrepreneurship has been changing overtime. For
example, while Marshall considered entrepreneurship as the driving force behind
organization, many economists nowadays consider entrepreneurship, by itself, as the fourth
factor of production (Arnold, 1996). Stevenson and Sahlman (1986) describe
entrepreneurship as an economic conduct characterized by the planned strategic direction,
commitment of opportunity, resources provision and control, concept of management and
completion policy. Moreover, entrepreneurship and the entrepreneur have been defined by a
combination of interacting situations as well as behavioural and personal variables (Bull and
Willard, 1993:185). Vesper (1980), on the other hand, sees the overall concept of
entrepreneurship as nothing more than the creation of new enterprises by individuals or a

39
small group of individuals. Sexton and Bowman-Upton (1990) add that it is the general
management approach that starts with opportunity recognition and ends with the exploitation
of that opportunity. Thus, it has not been easy to develop a common concept as far as
entrepreneurship is concerned. The main reasons for this difficulty in the conceptualisation
is the idea that entrepreneurship is a widespread economic, and in particular, business
phenomenon comprising a wide range of economic endeavour, thus, the definitions differ
and vary because authors try to take on specific characteristics of the different economic
endeavours (Gibb and Ritchie, 1982). Steel and Webster (1991) also argue that it is not easy
to find appropriate definitions of entrepreneurship since business activities do not occur in a
vacuum. There are a number of fields available for entrepreneurial activities and they take
place in different forms and scope. Thus social as well as economic contexts shape enterprise
(Kosgaard and Anderson, 2011).

Because of its nature, entrepreneurship research has been carried out from multidisciplinary
approaches, using different methods and concepts, thus yielding fragmented results
(Mazzarol, 1999:48; Anderson et al, 2012). Despite its origin, entrepreneurship can be
disembodied (Anderson and Jack, 2002) from its western perspective and applied to other
societal perspectives provided the phenomenon described is universal, to the extent that not
only all human endeavours involve uncertainties and risk but also resource organising.
Extensive literature search undertaken by this study reveals many authors and researchers
have tried to conceptualize the activities and processes involved in entrepreneurial
phenomenon. Yet there is no consensus by the social scientists on the definition of
entrepreneurship.

3.2 Female entrepreneurship

This section gives a description of female entrepreneurship focusing on its history, trends,
profiles; role of culture and gender relations as far as female entrepreneurship is concerned.

3.2.1 History of female entrepreneurship

As noted earlier amongst the earliest published work about women’s entrepreneurship was
that of Schwartz (1976), which examined characteristics, motivation, attitudes and barriers of
female entrepreneurs. Subsequent studies that followed Schwartz are mostly centred on
personal characteristics, which were generally explored through the lens of human capital

40
(Brush, 2006: xiv). Although women have owned enterprises ever since, the public policy
and popular media interest in women business owners is relatively a recent phenomenon
(Brush, 2006:18). Women in many African countries have started enterprises as the only
alternative on hand in order to overcome or reduce their poverty, rather than actively
pursuing business ownership as an economic choice (Richardson, 2004:17).

The economic changes in the modern world have also changed perceptions about the value
of women in modern society (Laukkanen and Niittykangas, 2003; Stein, 2007:54). As noted
in Chapter Two, since World War II, there have been changes which have forced women to
enter the men’s world of workplace and business ownership. Following the recent
transformation of economies, women’s capabilities and qualities have proved to be very
valuable (Ufuk and Ozjen, 2001:300).

Participation of women in entrepreneurship is said to be a recent phenomenon in the world,

especially in developing countries (Ufuk and Ozjen, 2001:299) like Tanzania; although
women have been involved in entrepreneurial activities for ages (Geiger, 1990). However the
number of women involved in entrepreneurial activities has risen rapidly (Wilson,
2004:178), that closing the gender gap between men and women owned businesses (Mueller,
2004:199). In Tanzania almost eighty percent of people involved in micro and small
businesses are women. At least one-third of all SME operators in developing countries are
thought to be women (Richardson, 2004:1).

3.2.2 Trends of women entrepreneurship

The level of women entrepreneurship in meaningful entrepreneurial activities is

comparatively low to that of men. Women are found in the low growth retail and service
sectors and they are said to have lower confidence compared to men (Fuller-Love,
2006:431). Women-led business enterprises are said to grow slower than male-led businesses
and have fewer employees (Minnitti et al, 2006)
It is evident that there has been an increase of women business owners in most economies.
For example, in the US from 1970 to 1988, the percentage of women owned business
increased from five percent to thirty percent (New Economic Realities, 1988) indicating that
women are starting businesses at a rate more than twice that of men. Despite this remarkable
increase in the number of women owned enterprises, and their impact on society and the

41
economic growth and development, still, there are limited studies on women business
owners especially in the rural areas (Brush, 2006:18).

3.2.3 Profile of women entrepreneurs

Previous research proved that there are disparities in entry, re entry and repositioning of
small enterprises based on social factors, and especially the owner’s characteristics
(Rasheed, 2004:113). Gender, age, education and ethnicity have all been suggested to
influence entrepreneurial performance (Rasheed, 2004:115). In different traditions and
cultures, people of different gender, age and education levels tend to be treated differently
and assume different roles in the society.

Many women in Africa spend most of their resources on the household, especially on food
and education for children (Simonin, 2006:14). This makes many of them afraid of investing
their limited resources into a meaningful business for fear of failure (Simonin, 2006:15) that
may jeopardize the life of the whole family.

In rural areas it is believed that most women entrepreneurs are characterized by the lack of
access to financial resources, lack of access to technology and other support services to
developing business and have relatively lower human capital levels (Smallbone et al, 2000).
As noted earlier women businesses are concentrated in the services sector which is
characterised by relatively small initial investments, requiring a minimal amount of financial
capital (Muhammad, 2007; Simonin, 2006:17).

3.2.4 Role of culture in women entrepreneurship development

Culture is simply defined as the set of values, beliefs that influence activities and the way in
which things are done. In this case, cultural environment provides incentives for the
exploitation of opportunities (Cuervo, 2005:306). Several authors have commented on the
importance of culture on entrepreneurship development. Herbig and Miller (1992) argue that
a culture that encourages entrepreneurial behaviours has a propensity to develop innovations
and a culture that promotes traditionalism is less likely to encourage such behaviours. It is
believed that in a traditionalist society where people’s commitment to respecting values and
social norms is high, the trust and the tendency to engage in opportunistic behaviour is
limited (Cuervo, 2005). Perceived similarity with cultural norms is important in predicting

42
intentions and motives, thus, there is a relationship between cultural norms and subsequent
entrepreneurial activity. That is, cultural values will predict the extent to which the society
considers entrepreneurial behaviours to be desirable (Hechavarria and Reynolds, 2009). It is
these arguments that culture plays an important role in developing an institutional structure
that encourages a more equalitarian society which allows women to pursue the
entrepreneurial career with more assurance of success (Santos, 2009:344). However, many
developing countries may lack this kind of culture.

Throughout the world, especially in indigenous local societies, economic and entrepreneurial
activities are part and parcel of the social and cultural activities of the society (Granovetter,
1985:504; 2005:35; Fletcher, 2006:423). Morrison et al (1998) suggests that the
entrepreneurship process begins with a person’s intuition, society and culture. Thus, each
individual in the society and the level of entrepreneurial spirit within a society play the major
role in initiating the entrepreneurship process.

Culture is responsible in transforming certain personality traits and can motivate individuals
to develop behaviour specific to that society (Mueller and Thomas, 2000). Erez and Earley
(1993) argue that the influence of culture on cognitive plans defines how people are
motivated to make choices, commit themselves and display standard behaviour. These values
are normally developed in early stages of life (Hofstede, 1980) and they tend to be rooted in
an individuals mind and will eventually lead to behaviour patterns depending on the cultural
context of that individual. Thus entrepreneurial spirit may be one of these behaviours that
differ across and within countries due to differences in cultural environment. Culture, in this
case is believed to influence the attitudes of individuals towards new venture initiation
(Vernon-Wortzel and Wortzel, 1997). Thus, certain cultural institutions may promote or
hinder entry into entrepreneurship (Morrison, 2000). Based on these arguments, Huisman
(1985) and McGrath et al (1992) concluded that cultural values influence entrepreneurial
behaviours.

The figure 3.1 below shows the key elements associated with culture that may influence the
entrepreneurship process.

43
Figure 3.1 Features associated with culture

Source: This diagram was influenced by the work of Morrison, 2000.

According to Morrison (2000), each entrepreneur’s motivations and characteristics have to

be meshed with host society and business environment, and then translated into
entrepreneurial activities and behaviour. Gibb (1996) on the other hand, argues that the ways
in which the children are trained from an early age through the formal education system, play
a major role in prompting of characteristics commonly related with entrepreneurial
behaviour. Deakins (1999) also noted that a characteristic of entrepreneurship is the inability
to separate business from social living.

The cultural environment of the society will display the common mind-set of population in
relation to the degree to which entrepreneurship is supported by society (Anderson and
Warren, 2011). The extent to which these cultural behaviours are tied to the community or
individual is said to have a significant influence on entrepreneurship. Societies that hold
strong communal and collective values do not support individualistic wealth creation while
those with strong individualistic values support individualistic wealth creation through

44
entrepreneurship (Gilder, 1971). Thus, in this case, it can be suggested that some cultures
and societies are more supportive to entrepreneurial activities development, resulting in
national and regional differences in entrepreneurial activities (Mueller, 2004:203).

The creation and maintenance of an environment that is favourable to the development of

existing enterprises is crucial in the creation of a wide base of population capable of
successful entrepreneurial behaviour, thus, an entrepreneur is a product of one’s socio-
cultural surroundings (Shivani et al, 2006). Therefore, structural settings make development
possible, while cultural factors determine whether the possibility becomes a reality (Lipset,
2000). That is why studies conducted in India linked the then prevailing economic
backwardness with the Indian culture (Fox, 1969).

3.2.5 Gender imbalances

The rate of female entrepreneurial activity is lower than that of their male counterparts
(Langowitz and Minnitti, 2007). This may be because entrepreneurial activities are
considered to be a male domain; women are discouraged from pursuing new ventures (Bird
and Brush, 2003).

There is social difference between masculine and feminine behaviours (Robichaud, et al

2007). It is believed that since young girls experience a different socialisation process from
that of young boys, women develop different skills, understandings and outlooks on life
(Fischer et al, 1993). Because of that, Robichaud et al (2007) believes that eventually males
and females tend to acquire distinctive skills, thus giving rise to gender-specific
entrepreneurial behaviours.

3.3 Analysis of rural female entrepreneurship

This section describes how the background of an entrepreneur affects her decision to
undertake an entrepreneurial activity, the nature of the rural enterprises owned by women
and the entrepreneurship process in the rural setting. Moreover, it describes the performance
of rural women entrepreneurs; education and management skills and finally the barriers and
constraints facing rural women entrepreneurs.

45
3.3.1 Background experience

In the developed economies, women may engage in small business after becoming
dissatisfied with their careers (Orhan, 2002:233). In these countries, women opt for
entrepreneurship because they seek for flexibility, being their own boss, personal interests
and income (Winn, 2004). This may be due to unsatisfying employment experiences; tight
work schedules and failure to acquire higher paid managerial positions (Weiler and
Bernasek, 2001). However, in developing countries, particularly for rural poor women,
engagement into small entrepreneurial activities is the only available alternative for survival.

3.3.2 Nature of rural women’s enterprises

Women entrepreneurs in rural areas are mostly limited from running competitive businesses
because they lack adequate education and skills, which generally limit their ability to access
various support services (UNIDO, 2001). As a cultural outcome, most of the rural enterprises
owned by women are smaller in terms of size, number of employees or revenue compared to
those owned by men (Winn, 2005). Also women are said to invest less in terms of capital
and technology when starting new business (Minnitti et al, 2006).

3.3.3 Entrepreneurship process

This section explains the process of entrepreneurship in terms of opportunity recognition and
risk taking by rural women entrepreneurs.

3.3.3.1 Opportunity recognition

The ability to recognize an opportunity is a prerequisite for any entrepreneur. Social

networking has been identified as one of the important factors influencing the opportunity
recognition; other factors being desire to become an entrepreneur; type of entrepreneurial
activities and entrepreneurial growth (Hmieleski and Corbett, 2006, Singh, 2000; Davidson
and Honig, 2003; DeClercg and Arenius, 2006). Also it is believed that social networking
can provide useful information on sources of finance, new skills, knowledge, advice, social
legitimacy, reputation and credibility (Hansen, 1995; Jenssen, 2001; Ripolles and Blesa,
2005; Welter and Kautonen, 2005). People who are involved in networks containing
entrepreneurs will tend to be more entrepreneurial (Klyver, et al, 2008:32). But the
entrepreneurial networking behaviour does differ among entrepreneurs from different
cultural backgrounds. Although very informal, networks in this study have been found to be

46
one of the most important ways of communication and for entrepreneurs to assist one
another

Christensen et al (1989) argues that, opportunity recognition may be defined as a way of

creating new business or improving the existing one significantly in order to create high
profit margins. The ability to recognize an opportunity is said to be an essential element in
entrepreneurship research (Jamali, 2009), because it determines the entrepreneurial
capability and the utilization of competitive advantage (DeTienne and Chandler, 2004).
Different factors have been identified to affect the level of opportunity recognition among
entrepreneurs. It is argued that utilization of entrepreneurial opportunity is influenced by the
operating environment in which the individual lives and undertakes the entrepreneurial
activities (Romanelli and Schoonhoven, 2001:41).

There are differences in opportunity recognition between gender that has been related to
human variables, such as education and work experience (Carter and Brush, 2005). It is
argued that women are less endowed with human capital to invest into personal employment
which limits their potential use of emerging opportunities (Jamali, 2009).

Another factor is that of lack of motivation among women entrepreneurs. Motivation is a set
of processes that determine individual choices (Olomi, 2009). These processes are influenced
by families and friends throughout a lifetime. As discussed earlier, it is believed that people
coming from business oriented families or who know someone who has started a business,
stand a better chance of becoming entrepreneurs (Davidson and Honig, 2003; Menzies et al,
2006). Studies from industrialized countries have noted large numbers of both men and
women entering into the small business sector in recent decades, as well as considerable
gender differences in the types of businesses and organizations women and men create, their
motives, business approach, and their economic outcomes (Brush et al, 2004; Carr, 2000;
Hughes, 2005; Minniti et al, 2005; Moore and Buttner, 1997). Motivation to start a business
was different; some were motivated to be entrepreneurs because they wanted to create
something new, the desire for independence, the achievement of personal objectives and the
propensity for action (www.rediff.com/money/2005). Gartner (1985) believes that the
motivation for the creation of new ventures is an interaction among individuals, organisation,
environment and process.

47
As noted earlier, western-based models assume that the entrepreneurial career is chosen, but
this is not true for Africa, as most entrepreneurs are forced into it by the need to earn a living
(Olomi and Rutashobya, 1999:170). In the Tanzanian context most women are “pushed”
rather than “pulled” into enterprise, so motivation is largely necessity.

Researchers have shown that situational pushes or pulls that result into new venture creation
include being disatisfied with a present occupation, childhood and family background,
training, age, life experience, role models and community support (Gilad and Levine, 1986).
It is on these grounds that other researchers have distinguished entrepreneurs from the
general public based on motivation, values and attitudes (Spangler, 1992).

3.3.3.2 Risk perception

According to Forlani and Mullins (2000), risk reflects the level of uncertainty and possible
loss related with the outcomes as a result of a specific behaviour or a set of behaviours of an
individual. Yates and Stone (1992) add the elements of potential losses and the impacts
associated with those losses. Factors that determine the levels of risk include lack of time,
lack of proper information and lack of control over an alternative best course of action. Other
factors are the ability to face uncertainty, accept risk and look for lifetime achievement
(McClelland, 1961). These factors distinguish entrepreneurs from other individuals in the
society (Kihlstrom and Laffont, 1979; MacCrimmon and Wehrung, 1986). However, Sexton
and Bowman-Upton (1990) argue that women entrepreneurs are less willing than men
entrepreneurs to become involved in situations with uncertain outcomes. Women perceive
risk negatively and associate it with pain and loss; while men perceive risk both negatively
and positively as loss or gain, danger or opportunity (Henning and Jardim, 1977). As El
Namaki argues, when women take risk, it means forfeiting what they have while men
consider risk to affect the future expectation and profession development (El Namaki et al,
1986). Thus, these arguments suggest that women are reluctant to accept any venture without
being certain with what will happen in the future. Therefore, women consider the “now”
benefits more valuable than “future” benefits.

3.3.4 Female entrepreneurship performance

Men and women differ when evaluating their performance. Women are said to evaluate their
performance using non financial criteria. A woman will consider herself to perform better if
her employees and/or clients are satisfied or if her career balances with family requirements

48
(Changanti, 1986; Cliff, 1998; Kaplan, 1988) while men place a greater emphasis on
economic achievements such as level of profit and career development (Stevenson and
Gumpert, 1985). However, factors influencing the performance of female entrepreneurs are
inconclusive and scarce (Brush and Hisrich, 2000).

Women are said to enter into business ventures without planning, but as a hobby or a
fashion. They do not evaluate their business idea for viability and profitability, consequently
making chances for growth and development limited (Greenstreet, 2004). Stein and Bailey
(1973) see women to be motivated for achievement, mainly the traditional feminine role.
Thus, for women, achievement or success or failure will be measured in terms of a
successful marriage, family relationship and social acceptance (El Namaki, 1986). Women
are said to be the main limiting factor for the development of their business ventures (Brush
et al, 2004; Carter and William, 2003) but a combination of different factors , such as low
capital investment and family commitments may contribute to the slow growth of their
business (Winn, 2005:388).

3.3.5 Education and management competence

For any business venture to grow, management and financial skills are essential (Thornhill
and Amit, 2003). It has been argued that the type of education positively affects business
success; formal and non formal education plays an important role in transferring cultural
values from one generation to another (Winn, 2005; Gamini de Alwis and Senathiraja,
2003); although education per se is not the only important determinant to owning a business
enterprise (Hagen, 1962). It has been noted that many women owning businesses, had no
management skills before, but gained their management experience from their own
businesses (Winn, 2005:384). Carter and Brush (2005) argue that gender differences in
opportunity recognition are associated with the differences in the level of education and
work experiences. From this point of view, it can be argued that rural poor women, who have
low education levels and have never worked outside the household circle, so have no work
experience, stand little chance of identifying any meaningful entrepreneurial opportunity.

Studies on entrepreneurship in Africa by Nafziger (1971); Kennedy (1998); Marsden (1990)

and Rugumamu (1992) stress the role of an enabling environment and quality of
management to entrepreneurship growth. Harris et al (1971) points to management as a
major obstacle to entrepreneurship in Africa. Also Menzies et al (2004) argue that many

49
women are not entrepreneurs because they lack skills, despite their entrepreneurial
motivation and inspiration. However, women were found to posses better networking skills
than men (Daniel, 2004).

3.3.6 Constraints and barriers

There are a number of reasons why people start a business. It may be hard to start a business
in any circumstances, but evidence shows that some people or groups of people find it more
difficult than others. People who are marginalized by the society, such as women, some
ethnic minority groups, the disabled and those in rural areas, may find it harder when they
attempt to start a business (Fuller-Love et al, 2006:430). For women, the common barrier is
the difficulty in accessing resources, especially finance, for their new venture (Brush et al,
2004). However, Ssendi and Anderson (2009) found that a major problem for rural women
entrepreneurs was not the acquisition of financial capital but concerns about how to repay it.

Women face discriminatory treatment in the society and state administration because of their
perceived role, which makes entrepreneurial environment for them very unfavourable
(Erdem, 2004; Carr and Chen, 2004). Women are said to fear engaging in business related
activities that may interfere with their family responsibilities. Because women are burdened
with family responsibilities, they lack ample time for learning and/or looking for business
opportunity (Winn, 2005). Winn continues that even boys and girls who grow in the modern
households are tamed with different views. The boys are reared to work hard and achieve for
themselves while girls are disciplined to perform the household chores and wait for
somebody to support them. For example, traditional Arab culture views women as mothers
and caretakers of the home (Jamali, 2009:237) and household chores are seen as humiliating
when done by men (Marikova, 2002).

Other studies have identified ethnicity as another factor influencing participation in

entrepreneurship in Africa. House et al (1993) and Macharia (1988) found that some ethnic
groups are more exposed to business experiences than others. These findings support studies
on the influence of role models and family background of entrepreneurs on entrepreneurship
participation by Mathews and Moser (1995) and Timmons (1986). Lack of information and
education has also been identified to limit most female entrepreneurs in their endeavours
(Blenker et al, 2003). This includes the lack of access to government services for training
and support for women (Stanger, 2004).

50
In Tanzania, factors that have been reported to influence women’s entry and effective
performance in entrepreneurial activities are lack of access to capital, scarcity of low
materials, poor technology, inadequate markets and low profitability of enterprises (Olomi,
2009). According to Kimbi (1989), lack of capital and credit services were identified as main
constraints for women’s effective participation in business in Dar es Salaam. Mbughuni
reports that, together with time constraints, opportunities for women to engage in business
are very limited. Also Kiggundu (2002) reports that the unfavourable legal systems, unequal
access to education and sex stereotyping education and training system have limited
women’s participation in entrepreneurial activities.

Gender Issues Research Report Number 9 (GIRR 9) of 1995 reports that, in Tanzania, other
things remaining the same, cultural values, traditions and norms have greatly influenced the
way women participate in entrepreneurial activities. What the society perceives as male and
female roles, responsibilities, values and behaviours are a result of stereo type gender
divisions of labour. This is manifestation has its implications in the dynamics of female
entrepreneurship. However, it does not single out exactly what these cultural values,
traditions and norms are and in which ways they affect women’s participation in
entrepreneurship in Tanzania.

3.4 Conclusion
The word entrepreneur is said to have originated from France long before there was a general
concept of an entrepreneurial function. An entrepreneur is seemed to be a founder who
creates value by offering a product or service; and she should have strong beliefs about the
market opportunity and should organise available scarce resources in the optimum
combination to achieve the output that should modify the existing interaction.

An entrepreneur is seen as the pivot of the economy, and a catalyst for economic
transformation and development. All entrepreneurs are different and their success depends
on the environmental conditions in which they operate. The planned behaviour theory and
the role theory were used to describe why some people are entrepreneurs and others are not.

Sociologists have described entrepreneurship as the process of generating income from

property and other personal assets like capital, land and labour for productive reasons.

51
Marshall considered entrepreneurship as a central factor which coordinates the other factors
together, and he believed that entrepreneurship is the high level decision taker within the
organisation. Since the Marshall’s era, the concept of entrepreneurship has been changing
overtime. Thus, it has been not easy to develop a common concept as far as entrepreneurship
is concerned.

Although women have owned enterprises ever since, the public policy and popular media
interest in women business owners is a relatively recent phenomenon. The level of women
participation in meaningful entrepreneurial activities is relatively low compared to men.
They operate in slow growing sectors such as retail and service, and are found to lack
confidence compared to men (Fuller-Love, 2006). Gender, age, education and ethnicity have
all been suggested to influence entrepreneurial performance as in different traditions and
cultures, people of different gender, age and education levels tend to be treated differently
and assume different roles in the society.

Cultural factors such as values and beliefs, and their influence on the entrepreneurial activity,
motivate people on how to recognize and exploit opportunities. Some cultural institutions
may promote or limit entry into entrepreneurship, thus influencing the rate at which
entrepreneurship is initiated.

Women entrepreneurs in rural areas are hindered from running competitive businesses
because of different factors such as low education and skill levels. Social networking has
been identified as one of the important factors influencing the opportunity recognition; desire
to become an entrepreneur; type of entrepreneurial activities; decision to become an
entrepreneur and entrepreneurial growth. Traditional perception and stereotyping about
women have been the barriers to women’s participation in entrepreneurship. It also found
that the society’s construction of what constitutes male and female roles and responsibilities
have influenced the dynamics and development of female entrepreneurship in Tanzania.
However, it does not single out exactly what these cultural values, traditions and norms are,
and in which ways they affect women’s participation in entrepreneurship in Tanzania. This
study intends to identify these social and cultural factors and their effects on women’s
participation in entrepreneurship in Pwani and Arusha.

52
 CHAPTER FOUR

CONCEPTUAL FRAMEWORK FOR THE STUDY

4.0 Introduction
In the previous chapters I presented the background to the study and the background for the
Tanzania national context and the pertinent and relevant literature reviewed for the study was
presented. This chapter focuses on providing a tentative theoretical framework to facilitate
analysis of the influence of socio cultural factors on rural entrepreneurship activities.

4.1 The conceptual framework of the study

As an ethnographer, I am fully aware of the importance of understanding the epistemological
basis for the ethnographic model. I have selected an ethnographic model, although this
model is usually based on a phenomenological oriented paradigm, that constitutes a
multicultural perspective and it accepts multiple realities (Fetterman, 1998:5).

Developing a conceptual framework for a diverse phenomenon like entrepreneurship is not

an easy task. An entrepreneurship phenomenon is multi dimensional in nature and is a
relatively new field of study in socio sciences. Entrepreneurship as a field of study has no
developed paradigms yet. There are different perspectives of entrepreneurship as a
phenomenon. The ongoing research is striving to develop direct theories for entrepreneurship
through development of concepts and conceptual frameworks.

The phenomenon under study is complex and calls for multiple strategy and diverse
conceptual tools to collect and analyze data. That is the only way this study will make its
intended contribution to the body of knowledge. There are a number of theories in other
fields of business administration and management which may assist in developing relevant
theories to guide in the analytical framework. However, the normative nature and the logic of
confirmation mean they are not well suited when studying entrepreneurship activities or
small businesses sectors. Entrepreneurship belongs to the business administration and
management fields and it tends to borrow theories from the established fields of economics,

53
sociology and psychology. Sometimes researchers look for specific theories to suit their
analytical frameworks, then they are forced beyond the fields of business administration and
management.

According to Davidson (1998), researchers may have to adapt and combine theories and
different theories could be applied to the study. He further notes that many analyses proceed
by contrasting a naked phenomenon with possible theories then choosing the one with the
highest explanation power. He goes further by stating that the choice of suitable theoretical
framework is dependent on the time, place and purpose of the study. By considering an
interpretive perspective, there are several theories which can be matched with the
phenomenon under study. As stated in earlier chapters this study does not aim in developing
new theories. The primary aim of the study is to use the existing theories to analyse how the
socio cultural factors may have impacted on how women undertake their entrepreneurial
activities.

Specific theories may be applied when studying specific topics. As Fetterman argues,
“……theories that offer little explanatory power, are inappropriate for most topics, or have
been debunked are best left rotting on the vine” (Fetterman, 1998:5). There is no single
theory which can answer all the problems, whether idealistic or materialistic except that
usually ethnographers choose theories to fit with their objectives. To this end, Fetterman
further explains: “… typically, ethnographers do not make a grand theory explicit because
they do not automatically subscribe to one” (Fetterman, 1998:5). According to him, a grand
theory can be instructive to day to day research objectives. He says theoretical models are
indirectly linked to grand theory to guide the researchers. It is obvious that approaches do
overlap in the field, but most researchers begin by selecting a theory or model that is
primarily idealistic or materialistic in nature before they even begin to conceptualize the
problem. Thus, a theory is supposed to guide the researcher in a maze of data, and when it
blinds rather than guides it is no longer useful. When the data does not fit the theory, it
becomes inevitable to look for a new theory (Fetterman, 1998).

In the 1980’s, qualitative research underwent a transformation to broaden its scope of inquiry
to include different theoretical lenses (Creswell, 2003). In ethnographic studies like this, the
aim of having a guiding theory is to provide a lens that frames the study and the questions
asked (Creswell, 2003). Creswell explains that any theory which provides an explanation for

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behaviour and attitudes may as well be complete with variables, constructs and hypothesis.
On the other hand, Wolcott (1996) notes that ethnographers employ cultural themes or
“aspects of culture” when undertaking qualitative studies. This study aims at choosing the
theoretical lens in order to guide the study and the researcher to examine how rural female
entrepreneurs are marginalised and how the researcher, positions herself upfront and
minimizes any bias from personal, cultural and past contexts, and allows respondents to
describe their world and how they go about doing what they are doing.

4.2 Choice of theory

For the purpose of this study, the researcher has been driven to choose the social
construction of knowledge lens to assist in making sense of the data. According to Berger
and Luckmann (1966), reality is constructed by persons and groups interacting together in a
social system who in the long run form concepts or mental representations of each other’s
actions. So individuals develop understandings of the social world by making inferences;
thus, developing theories about experienced social events (Turiel, 1983). It is assumed that
individuals accommodate to the patterns or elements of the culture or social system, thereby
coming to mirror the culture in their personalities, thinking and behaviour (Shweder, 1982)
and that, individuals will tend to use forms of reasoning which correspond to the social
structure in which they are inserted (Flick, 1998). Doise and Palmonari (1984) show that
there is an interdependence between social and individual regulations, such that specific
competences allow an individual to participate in social interactions which can give rise to
new competences which can then further enrich participation in other social interactions
(Flick, 1998). Thus, it can be argued that it is through social interactions and coordination
poor rural female entrepreneurs can do meaningful businesses which they were unable to
achieve individually. It is therefore in this way, the interactions, knowledge and
understanding are formed. Therefore, to analyse how women use business to survive, or how
friends help each other in obtaining credit and the whole process as a whole, the social
construction of knowledge theory was seen to be appropriate. The choice of this perspective
was done in accordance with logic of appropriateness rather than logic of consequence. This
means there are many possible alternative theories and perspectives in studying the same
phenomenon, such as institutional theory, mobility theory, system theory and social network
theory.

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As stated earlier in the chapter, the final choice of the theory depends not only on the aims of
the study but also on its explanatory power. The assumption being that entrepreneurial
activities, like many other social processes embedded in society, are influenced by prevailing
institutions, among others the socio cultural norms of any national context. For this particular
study the researcher strongly believes the social constructionist theories as the most
appropriate. The nature of this study may limit the use of social construction theory because
of its high level explanatory power or may be too abstract, but used in conjunction with a
middle range theory, it should have a reasonable, more practical explanatory power. For that
reason the researcher decided to adopt a more practical lens, the sustainable livelihood
approach. This approach is more appropriate for this study as it is capable of aiding in
understanding the process of female entrepreneurship in a developing country like Tanzania.

4.2.1 Sustainable livelihood approach

The word livelihood has been used in many different ways but for this study the definition
adopted from Chambers and Conway (1992), is used to capture a broad view of livelihood
understanding: According to their definition, a livelihood comprises the capabilities, assets
and activities required in order for an individual to earn a of living (DFID, 2000;
www.scribd.com/doc/16343533/Introduction-to-livelihood-Framework). A livelihood is said
to be sustainable when it is able to stand and recover from stress and shocks and preserves or
improves its capabilities and assets both now and in the future, while not damaging the
natural resource base (Creswell, 1997; Hussein and Nelson, 1998; Scones, 1998; Carney,
1998). Building on this definition, Ellis (2000) stresses more on the influence of social
relations and institutions that guide an individual’s or society’s ability to earn a sustainable
living.

4.2.2 Origins and objectives of livelihood approach

Livelihood philosophy refers back to the work of Robert Chambers in the mid 1980’s and
was further developed by Chambers and Conway and others in the early 1990’s (DFID,
2000). Since that time, a number of livelihood models have been adopted. The core of
livelihood model is the relationship between assets, activities and outcomes within a
mediating environment as shown in figure 4.1(ODI, 2000).

56
However, for DFID, the sustainable livelihood approach stresses on policy and good
practice. The DFID’s main objective is to support policy initiatives and actions that
encourages sustainable livelihoods in terms of access to better education and health services;
increase in opportunity to poor people; conservation and sustainable management of natural
resources which in turn helps to create amore conducive physical, social and institutional
environment for poverty eradication (DFID, 2000)). The focus of the basic livelihood model
is the household as the appropriate social unit to investigate, although external threats may
be social or public in nature. It is also people-centred as it puts people at the centre of
development.

In understanding how the poor rural female entrepreneurs depend on their micro enterprises
for their livelihood, one has to think of a tool which will aid in improving understanding of
livelihoods (DFID, 2000). The tool has to represent the main factors that affect the rural poor
entrepreneurs also to expose the relationship between these factors. In this case a livelihood
framework may provide a list of important issues to be addressed and show how these issues
are related. The framework also draw attention to the main influences and processes and it
emphasizes on the relationship of the different factors on livelihood.

The main aim of livelihood framework is to assist people with different orientations to
participate in a formal and logical discussion of the different factors that affect them, how the
factors are important to their livelihood and the way these people interact with each other.
This understanding may help policy makers and other stakeholders to identify the
appropriate areas of concern for supporting improvement of livelihood.

4.3 Components of the livelihood framework

There are five components of a generic livelihood framework namely: vulnerability context;
livelihood assets; transforming structures and processes; livelihood strategies and livelihood
outcomes. As the framework is centred on people, it does not suggest that all livelihood
frameworks have to start with the vulnerability context which in turn yields livelihood
outcomes. Livelihood is influenced by many different dynamic factors (DFID, 2000).

4.3.1 Vulnerability context

This shapes the external environment in which rural female entrepreneurs operate. The
livelihoods of rural women and the availability of assets are basically affected by shocks and
seasonality over which they have limited or no control. Trends may include population,

57
resources, economic and technological trends. Shocks like HIV and AIDS, human health,
national economy and conflict are other elements of the vulnerability context. Also prices,
production (both farm and non-farm), animal health and employment opportunities are
influenced by seasons. The environment under which female entrepreneurship operate is
very crucial as it impacts on the availability of the livelihood assets and choices made to
achieve a sustainable outcome.

4.3.2 Livelihood Assets

This component tries to gain understanding of how an entrepreneur may utilize the available
assets to produce meaningful outcomes. This is true as entrepreneurs need to be equipped
with different livelihood assets. Possessing a single category of assets may limit the ability of
entrepreneur to achieve a desirable level of livelihood outcomes. The poor rural female
entrepreneurs have limitations on how much of the individual livelihood assets they can
access. Thus, there is need to find an innovative way of dividing and combining the available
assets ensures their survival. The assets or capital endowments include: human capital; social
capital; physical capital; financial and natural capital

These capitals are grammatically represented by an asset pentagon in a generic livelihood

framework. When people have access to livelihood assets the shape of the pentagon displays
minimum or maximum access to assets. For this reason, different communities or different
social groups within communities may have different shapes of asset pentagon. Therefore,
pentagons can be used as a useful tool for discussing how these female entrepreneurs use
available assets in starting and running their enterprises.

4.3.2.1 Human capital

In entrepreneurship human capital represents the level of available skills and knowledge to
female entrepreneurs. It also includes the ability to work and having good health in order to
be able to undertake economic activities that will assist in achieving the individual’s
livelihood objectives. (DFID, 2000). Human capital is an important asset as it is required in
order to utilize the other four types of assets. However, human capital alone is not enough
for the achievements of positive livelihood outcome.

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4.3.2.2 Social capital
In the sustainable livelihood framework perspective, social capital means the social resources
which rural female entrepreneurs need in attaining their livelihood objectives. These
resources are developed through local networks and togetherness of individuals in the
society (DFID, 2000). Social capital is important because it influences other types of capital
in terms of efficient economic relations by facilitating innovation, developing the knowledge
and sharing of that knowledge.

4.3.2.3 Natural capital

Natural capital is used to describe the natural resources which are found in a certain locality
and they provide useful service to the occupants of that locality stocks from which resource
flow and services useful for livelihood are derived. This asset is closely related with the
vulnerability context within the framework, because many shocks that affect the wellbeing of
people occur naturally. Natural capital is crucial to those whose livelihoods depend entirely
or partly on natural resource-based activities. People’s lives are dependent on the resources
for their food and wellbeing. (DFID, 2000)

4.3.2.4 Physical capital

The physical capital includes supportive infrastructure, tools and equipment and man made
goods that are needed to support livelihoods. They putting in place includes modifications to
the physical environment in order to facilitate poor rural female entrepreneurs to achieve
their livelihood goals, while man made goods are tools and equipment that are used to
improve efficiency. Absence or insufficient infrastructure and inappropriate producer goods
are core dimension of poverty and constrain poor rural female entrepreneurs, hence, the
human capital at their disposal.

4.3.2.5 Financial capital

This denotes the financial resources that poor rural female entrepreneurs use to achieve their
livelihood objectives. The financial capital can either come from available stocks (savings)
or regular inflows of money from family and friends. Financial capital could be transformed
with varying degrees of ease into other types of capital; it could be used for direct
achievement of livelihood outcomes; it may rightly or wrongly transformed into political
influence or social influence and it may free entrepreneurs to access more resources.

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However, this assets category tends to be least available to the rural poor female
entrepreneurs.

4.3.3 Transforming structures and processes

These include structures such as public and private institutions, government and non
government organisations. It also includes policies, legislations that are relevant to the
people and which can form livelihoods. They operate at all levels from the female
entrepreneurs’ households to the national level, ranging from most private to most public.
They may influence how much of the livelihood capitals and other components may
influence how individuals are capable of improving their wellbeing and attain a feel of
inclusion. The transforming structures and processes may provide justification as to why
things are done differently in different societies (DFID, 2000).

4.3.3.1 Transforming structures

The transforming structures can be referred to as the ‘hardware’ of the different government
and non government organisations. They oversee the implementation of policies and
legislations. They deliver services and are responsible for facilitating rural female
entrepreneurs (DFID, 2000). Structures are important because they make processes function.
When they are insufficient structures in place it may be a major constraint of development
particularly in rural areas.

4.3.3.2 Transforming processes

These are considered to be the ‘software’. They determine how the structures and individuals
relate and work together. These operate at different levels and they overlap with conflicts
between them. Some of the important transforming processes to livelihoods include policies,
institutions, legislation, culture and power relations (DFID, 2000). Processes are deemed to
be important to every aspect of livelihoods because of the following reasons: they provide
for incentives; they may determine how an individual can access livelihood assets and how
one can convert one type of asset into another. They greatly influence how people relate with
each other. The problem with these processes is that to a greater extent they limit the
opportunities for poor people to develop.

4.3.4 Livelihood strategies

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These strategies encompass various activities done by female entrepreneurs and the choices
they have to make in realising their livelihood objectives. The level of access to different
combinations of assets may have influence on the way entrepreneurs choose their livelihood
strategies. This is because different strategies require particular skills or resources, such as
financial capital, physical capital certain types of natural capital and local social networks
in undertaking entrepreneurship activity as the basis of production; or access to a given
group of people attained only through existing social networks (DFID, 2000).

Transforming structures and processes can influence constructive choices. They can facilitate
labour markets dynamics; minimize risks and transactions costs resulting from taking new
ventures. If they do not function well, they may limit the choices available, confining the
movement of goods and labour, making outcomes of a given strategy more or less attractive.

4.3.5 Livelihood outcomes

These are end result of the strategies put in place when one wants to achieve sustainable
livelihood. As a researcher it is of paramount to observe how people go about doing their
daily activities by engaging in conversations to without making conclusions on what type of
outcomes that female entrepreneurs seek to pursue. The classical economic principles should
not be applied that rural female entrepreneurs are entirely dedicated to maximizing their
profit, but to understand their priorities, motivation and their major constraints. The
livelihood outcomes that appear in the generic framework include; more income (cash);
increased well being (awareness of self, wellbeing); reduced vulnerability (how better they
are resilient as a result of increase in livelihood assets); improved food security (increased
financial capital to buy food); natural resource sustainability (ownership of land based
property). However, the mentioned outcomes may or may not be relevant in any given
situation. The main difficulty with this part is that the livelihood outcomes are not always
consistent but surely incommensurable. For example, it is not easy to measure the relative
values of increased well being as compared to increased income. There may be
contradictions between livelihood outcomes among different family members or societies,
for example when increased income of a person or a group is achieved through practices that
are considered to be detrimental to others or the natural environment. Such practices may
include felling trees and selling them as fuel, excessive fishing, and cultivation on natural
water sources. The sustainable livelihood framework is not medicine for all ailments. It is a
guideline in thinking how to understand everyday life dilemmas and how they affect
people’s livelihood (DFID, 2000). Figure 4.1 illustrates the generic livelihood model.

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Figure 4.1 A generic sustainable livelihood model

Key

H-Human capital
S- Social capital
N- Natural capital
P- Physical capital
F-Financial capital

Source: DFID 2000

4.4 Conclusion
This chapter has tried to explain how, in the context of a developing country, it is not easy to
adopt theories which have seemed to provide a powerful explanation in western contexts to
the context of a poor country like Tanzania. The choice of the sustainable livelihood model
seems the most appropriate approach to aid in analysing the collected data.

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 CHAPTER FIVE

METHODOLOGY

“If you want to know how much people weigh, use a scale. If you want to know if they’re obese,

measure body fat in relation to height and weight and compare the results to population norms. If you

want to know what their weight means to them, how it affects them, how they think about it, and what

they do about it, you need to ask them questions, find out about their experiences, and hear their

stories’. Michael Quinn Patton, 2002:13.

5.0 Introduction
This chapter intends to inform the reader about the research methodology and methods used
to collect and analyse data. The chapter consists of six sections. The first section addresses
the underlying philosophical issues so as to provide a theoretical background for the study.
The justification for the chosen paradigm, methodology and the research strategy are
discussed in the second and third sections respectively. The procedure for conducting the
research is described in the fourth section, while the ethical issues are presented in the fifth
section. The final section concludes the chapter.

5.1 Underlying philosophical assumptions

“If we value the pursuit of knowledge, we must be free to follow wherever that search may lead us.
The free mind is no barking dog to be tethered on a one foot chain.”
Theodor Wiesengrund Ardono 1903 - 1969

In designing and undertaking this study, the underlying philosophical assumptions need to be
made clear. This is because the theoretical framework, choice of paradigm, personal value
and world views influenced how the study was conducted and written. Any good research
strives to make the assumptions explicitly to shape the perspectives of the study. This study
is not totally objective or value-free i.e. the researcher should avoid any circumstances that
may corrupt their analytical competence. There are differing views of what knowledge is, its
validity, subjectivity, objectivity and reality of social science research (Creswell, 1998,

63
2007). Ritchie and Lewis (2003:13–23) outlined philosophical assumptions with
implications for practice that need to be considered. Therefore, for this particular study the
researcher looked into four assumptions, namely ontology, epistemology, human nature and
methodological implications.

5.1.1 Ontological assumptions

Ontology is mainly concerned with the nature of being. In social science research, the key
ontological concern is the nature of “reality” and whether social reality exists, independent of
human conceptions and interpretations (Snape and Spencer in Ritchie and Lewis, 2003:11).
There are three distinct positions of social reality, namely realism, materialism and idealism.
Hammersley (1992) believes in subtle realism, whereby social phenomena exist in the social
world. Their existence occurs independently but the phenomenon can only be accessed
through social representation. On the other hand, Creswell (2007:17-18) discusses reality as
being biased with different perspectives in the eyes of the research participants. In this view
the researcher uses the words of the participants involved in the study as evidence of the
multiple perspectives. These include a number of quotes and verbatim comments from the
respondents own words which show the different perspectives (multiple realities) they have
on similar issues. On the other hand, Buame argues that, “reality is socially constructed and
imbued with only inter-subjective meanings” (Buame 1996:43). The argument here is
whether the social world exists independent of natural world, and that the existence of the
social world is different because of different perceptions of individuals. It may be argued that
the social world is created by individuals living in it through their perceptions and how they
place meaning to their world. This study supports the assumption about realism, which,
according to Ritchie and Lewis (2003), that external reality exists independent of people’s
beliefs.

5.1.2 Epistemological assumptions

Epistemology is a name derived from the Greek term episteme, meaning knowledge and logo
means theory. Epistemology is concerned with different ways of knowing and learning about
the social world and trying to understand how people can know about reality. In undertaking
a qualitative study, researchers try to understand the respondents world closely (Snape and
Spencer in Ritchie and Lewis, 2003). Creswell argues that the most common question to ask
is how the researcher is related to those being researched (Creswell, 2007). In this case, the
researcher has tried to lessen the distance between her and those being researched. The

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researcher spent considerable time in the field, participating in activities, living with
respondents: observing what participants do and say, conversing formally and informally and
becoming an “insider”. The researcher does, however acknowledge the fact that she takes on
the position of ‘emphatic neutrality’; a researcher who recognizes that research cannot be
value-free, but that assumptions should be made transparent. Snape and Spencer continue
arguing that the influence of these assumptions on the way data is collected and analyzed can
be flexible (Ritchie and Lewis 2003: 13-14). Epistemology concerns itself with posing and
resolving the problem of how “valid” knowledge is possible and it deals with the nature,
origin, scope and limits of human knowledge (MacDonnell, 1986 in Buame 1996:43). It can
be argued that when individuals are looking at ways of acquiring knowledge they should also
think how it relates to reality. Therefore epistemological assumptions need to establish what
is to be considered as “truth” by having several reports confirming a statement as are
presentations of a socially constructed reality. However, “independent reality can only be
gauged in a consensual, rather than absolute way” (Snape and Spencer in Ritchie and Lewis
2003:14). Nonetheless, the above argument suggests that respondents provide firsthand
information which is used by the researcher to understand the phenomenon under study.

5.1.3 Assumptions about human nature

The assumption about human nature refers to how the human beings interact with their
environment in which they live. It can be argued that people’s behaviour and actions are
influenced by the internal and external environment surrounding them, even though people
are capable of creating their own free environment. However, the researcher believes that
this capability is determined by social and cultural environment prevailing in a particular
context. Thus, she believes that differences which exists between rural poor female
entrepreneurs from Pwani and Arusha may be a result of the different socio cultural contexts
between the regions. Everyday activities of rural female entrepreneurs can not be divorced
from the environment they are operating. The environment they live and operate impacts on
their behaviour and may also influence experiences they gain in that particular environment.
This perspective might be better understood in terms of the following example; people from
different geographical areas and different socio cultural influence may have different
perceptions of entrepreneurial success.

In this case, the researcher views human nature as captured in the characteristics of
entrepreneurship and the activities involved. The problem for researchers is the association
of non-economic issues, which may have an ever greater impact on how people undertake

65
their entrepreneurship activities. It is assumed in this study that people cannot ignore the
socio cultural environment in which they are embedded. No human being, nor any human
action, is thought to be immune to the influence of its social and cultural context (Buame,
1996:44). Thus, studying human activities require a specific method.

5.1.4 Methodological assumptions

According to Creswell (2007:17), methodological assumptions ask questions about the
process of research. In undertaking the study the researcher uses inductive logic to
investigate the phenomenon within its framework and utilises an emerging design. In
conducting the study, the researcher looks into the data details before ‘conformability’ and
’validations’, where she gives a detailed description within the context in which the study
was undertaken and uses the opportunity to improve research questions to best fit the
research problem. The choice of adopting a deductive or inductive method depends on how
one sees the social world. There are factors which may determine which approach to adopt
depending on their experience and how they see the world.

The use of an inductive approach allows the researcher to have an insight of the social world.
This can be done by using methods such as participant observation, in depth interviews and
conversations. On the other hand the use of deductive approach is to test hypothesis by using
questionnaires and surveys. Social researchers have different views of how a phenomenon
may be studied and different perspectives people may have on the same issues may influence
how they design their research. The most important thing to note is that the choice of
research approach may largely be influenced by the belief in one methodological stance over
the other.

The qualitative methodology for this study is inductive and emergent, in the sense that
issues became refined in the research process. It is guided by the researcher’s knowledge and
experience in conducting field work and analysing data, as the concepts emerge from data
that assist in theory development. This process witnessed changes in the focus of the study,
which resulted in research questions being amended, at different stages of the study, and
enabled the research issues to be better addressed.

5.2 Justification for chosen methodology

“Not everything that can be counted counts and not everything that counts can be counted.”
Albert Einstein, 1879 – 1955

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The aim of choosing qualitative methodology is to try to better understand the phenomenon
under investigation. The aim is not to count but to see the bigger picture. This study is both
exploratory in nature and it seeks to tap into the lived experiences of the respondents. Many
changes have occurred on the landscape of qualitative research. The approach is now
recognised as one of the legitimate modes of inquiry particularly in social, behavioural and
health sciences. This turn of events has resulted in more qualitative work being published
and more qualitative projects being funded (Creswell, 2007). Interpretive qualitative
approach in a way has influenced how researchers undertake qualitative inquiries and how
they present it. Denzin and Lincoln (2005) share this perspective by stating that there are
other aspects of qualitative research which play a more central role in designing qualitative
inquiry, for example, the role of the researcher, or the person reading the research. Other
writers from an ethnographic background argue about how researchers find themselves
embracing an interpretive turn which focuses on the future of ethnography in terms of
methodology, theory and ethnographic writing for publication (Koro-Ljungberg and
Greckhamer, 2005).

5.3 Research strategy

The study emphasizes the need to understand the background, experiences and the process of
entrepreneurship in a way that may assist in the formulation of suitable policies beneficial to
poor rural female entrepreneurs, as well as improving the practice and enhancing the process
of entrepreneurship. According to Harris (in Creswell, 2007:68), it is important to investigate
the phenomenon systematically so that the results will portray the holistic picture of the lives
of the people under investigation. The study involved analyzing the values, behaviours,
beliefs, practices and the language of the cultural sharing group. For this particular study,
adopting an appropriate approach in order to conduct the study was of great importance. So
the researcher adopted an ethnographic case study approach so that she can observe,
interview and converse with the respondents closely.

5.3.1 Choice of study approach

A number of fundamental features guided the choice of approach adopted in this work. They
include the context in which the study is undertaken, the sources of data collection, the type
of data to be collected, the choice of cases and finally, the interpretation of analysed data
(Hammersley, 1998:2). The study intended to examine how women in rural areas undertake

67
very small businesses in developing countries like Tanzania; accordingly an ethnographic
approach was used to undertake this investigation.

Ethnography has been defined in different ways by different authors. Fetterman refers to
ethnography as the “art and science of describing a group or culture”. He goes on to say…
“the description may be of a small tribe group in an exotic land or a classroom in the middle
of suburbia” (Fetterman, 1998:1). Conversely, Creswell (2007:68) describes an
ethnographer as a person who is interested in examining shared patterns. In this study, an
ethnographic approach is used to understand the effects of culture on practices.

As pointed out earlier, this study will employ the ethnographic case study approach.
Flyvbjerg defines a case study as “An intensive analysis of individual unit (as a person or
community) stressing developmental factors in relation to environment”. He argues that case
studies entail more details, richness completeness and variance and those case studies are
context specific, (Flyvbjerg, 2011:301). On the other hand Yin (2003) defines a case study as
a unit of human activity embedded in the real world which can only be studied or understood
in context, which exists in the ‘here and now’; that merges in with its context, so that precise
boundaries are difficult to draw. This is a research strategy which investigates the
phenomenon in its real life context. This study adopted the approach of multiple cases and
descriptive or exploratory (causal). These multiple cases enabled the researcher to draw from
as many sources of data as possible to enhance the understanding of the phenomenon and to
assist in making a reasonable ‘dependability’ of the results, in analytical terms (Creswell,
2007:8). For these reasons, the researcher believes that undertaking the study in a specific
context to analyse a specific phenomenon will benefit from an ethnographic case study
approach. She concurs with Fetterman’s (1998:19) argument that;

“…ethnographers endeavour to describe as much as possible about a culture or a small

group, where the description might include the group’s history, religion, politics, economy
and environment”

The approach will facilitate this study to acquire the holistic picture and will help in the
understanding of the phenomenon under study. In this case the influence of socio cultural
factors on female entrepreneurial activities in rural Tanzania.

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5.3.2 The challenges of using ethnography

“…social events and processes must be explained in terms of their relationship to the context in which
they occur” Martin Hammersley 1998:8.

The criticism of ethnography is based on the methodological debate that ethnography does
not meet the criteria of being scientific. This notion occupied the discussions on ethnography
in the 1960’s and 1970’s. Secondly, there is the question whether or not ethnography has
moved away from quantitative research and models of natural sciences. In fact, it is
conducted in such a way that it assists the understanding of the cultural perspectives of
particular human actions. Also, ethnography attempts to discover new concepts and
principles, which were not even the focus of the earlier work. This fact has contributed to the
debate of how qualitative research has failed to capture how human beings behave in the
social world (Hammersley, 1998).

Over time quantitative researchers have questioned the scientific status of ethnographic
studies. The main criticism is based on the lack of precision in ethnography; the use of
methods of data collection such as unstructured observation and unstructured interviews; the
use of small samples in natural setting and emerging difficulties of replicating ethnographic
studies.

Nonetheless, the use of ethnography to conduct research in developing countries, where the
tradition of research is just beginning, is the best option. This argument is supported by
Hammersley (1998), Huberman and Miles (2002:65) that, when people are in close relation
with each other and are in long term contacts, their beliefs and behaviour can be understood
more accurately, in a way that would not be possible if other means of understanding were
used. They go on to stress that the goal of ethnographic research enables the researcher to
fully represent what she has discovered as the true nature of the social phenomenon under
study.

Ethnographic case study seemed the most appropriate approach to adopt compared to other
approaches which have limitations in their application. Examples of such approaches are
surveys and experiments, as Blumer (1969) argues in his methodological writings of Chicago
Sociologists. He argues that experiments and surveys research have failed to grasp the
distinctive nature of human social life, and the key feature of naturalistic inquiry which a

69
researcher can strategise in order to get closer to a naturally occurring social phenomenon.
On the other hand Hammersley (1989:127-128) uses metaphors to describe this approach as
‘lifting the veils’ and ‘digging deeper’ while Matza (1969) argues about naturalism and that
its main commitment is to enable the researcher to capture the true nature of the of social
phenomenon in the participant’s terms. These views are also shared with other authors in the
field such as Lofland, (1972); Schatzman and Strauss, (1973); and Fetterman, (1998). With
the chosen case study, the ethnographic approach is the most appropriate for this study, as
compared to other methods such as surveys or questionnaire-based.

Moreover, doing research in the developing world may present difficulties, as the
environment and background of the respondents might limit how the respondents will
participate in the study. Approaches like surveys, where mail or telephone surveys are
carried out in the environment in which the study is undertaken, would not be practical as
many people, and in particular women, have no access to telephones and some of them
cannot read or write. Questionnaires may be ambiguous in rural environments, but also the
limitation of questionnaires’ low response rate may be the reason behind the lack of
representation of the study population (Dana and Dana, 2005:80). The research instruments
developed for the study may influence the output of research. In countries like Tanzania, it is
important to develop research instruments which will not be too foreign to the respondent.
The success of the researcher’s task of data collection will depend on how he or she uses
already known instruments which are also used in daily life such as interviews, telling stories
and conversation. This study aims at increasing the understanding of poor rural female
entrepreneurs and how they undertake their activities in their existing environment.

5.4.3 Justification of research, aims and research questions

Based on the research aims outlined in section 1.2, the following research questions were
developed and seemed to be relevant to the study. Table 5.1 below shows the relationship
between specific objectives and research questions.

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Table 5.1 Research aims and research questions

Specific objectives Research questions

1. To understand the background i. what are the respondents’ personal

experience of the rural women characteristics, family background and
entrepreneurs in Tanzania education background

ii. what are their life experiences at home and

after leaving home

iii. what are the business experiences,

motivation and business ideas

iv. how did they start their first business

2. To explore nature and size of i. how did they start up their business
enterprises undertaken by the rural
women entrepreneurs ii. at what age did they start their business

iii. what type of business undertaken and

products sold

iv. where did they get their initial capital

v. how much do they sell in a given time

period

vi. how do they interact with others in the

entrepreneurial process

3. To explore the entrepreneurial activities i. how did they get business premises
process in the rural areas
ii. how do they carry out buying and selling
transactions

iii. what are the business development supports

iv. how do the rural women entrepreneurs

spend their typical day
4. To examine the constraints faced by i. what are the financial, social, cultural and
rural women entrepreneurs and how institutional constraints facing rural
they overcome them women entrepreneurs in undertaking
entrepreneurial activities

ii. how do they overcome those constraints

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 Specific objectives Research questions

5. To apply the findings to develop i. how individuals would like things to be

relevant information that may assist in
improving the entrepreneurial ii. how to improve the performance of
performance of women in rural areas supporting institutions

iii. what are the effects of culture, traditions,

norms and customs on socio-economic
performance of rural women

As noted in earlier chapters, this study was carried out in three rural villages, two villages in
the Pwani region and one village in the Arusha region. These villages are Kongowe from
Kibaha district, Ruvu Darajani from Bagamoyo district and Patandi from Arumeru district.
The two villages in the Pwani region were selected purposely, on the basis of being in one of
the poorest regions in the country. Also these villages were chosen as a continuation of a
study conducted by the same researcher in 2003. The choice of Patandi village was based on
the fact that the Arusha region is an economically successful area. Moreover, as this study
explores the impact of socio cultural factors on entrepreneurship, another reason for selecting
these villages is that the researcher wanted to examine the process of entrepreneurship
between contrasting regions in terms of geographical location and economic well being.
Furthermore, all the three villages are located along the main trunk road leading to other
regions and neighbouring countries. Kongowe and Ruvu Darajani are found along the
Morogoro road, which is the main transport artery in the country. It is the major link to
countries like Malawi and Zambia. On the other hand, Patandi is found along the Moshi to
Arusha road which leads to nearby countries such as Kenya and Uganda, which are
important trade routes.

Lastly the three villages have markets where both women and men operate. Kongowe and
Ruvu Darajani have less permanent market places where entrepreneurship activities are
carried out every day. Patandi on the other hand has a market which operates at full-scale
two days a week and on a very small scale on Mondays to Saturdays. The market is closed
on Sundays. This selection did not take into consideration the climatic conditions and other
geographical characteristics prevailing in the three villages.

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5.3.4 Study population

The target population for this study was rural female entrepreneurs who are petty traders in
their village markets. They operate inside the market or around the market area depending on
the set up of the market. These are poor rural female entrepreneurs who buy and sell small
items for everyday life. This category of the population is typical in most village markets in
the country. The studied respondents were individual poor rural female entrepreneurs who
own and manage micro-enterprises.

5.4 Research procedures

This section describes how the research was conducted in terms of the pilot study, field
experience, sampling procedures and data collection.

5.4.1 Pilot study experience

During the pilot phase the researcher tried to use tape-recordings but with very little success.
Once the researcher asked if she could record a conversation, everything changed; from the
posture, language, tone, and even responses were made to suit the recording environment.
The researcher then decided not to use any recording device throughout field work. Because
all the interviews with women entrepreneurs were conducted at the site of business, there
was a lot of distraction and background noise, which made the researcher to change the times
of interviews to early mornings or late evening, just before closing. This had its
repercussions and presented limitations on the respondents in terms of fatigue, and for the
researcher, in terms of time and resources. At several points the researcher began to wish that
she had used a survey, but she shielded away from the possibility very quickly. Positivist
approaches would not be suitable or appropriate because of their limitations ontologically
and epistemologically. As explained earlier there are no post offices in the villages and
respondents would never be bothered to respond to questionnaires partly because of an
inability to read or write. Nonetheless, being a researcher is not an easy role, there is always
suspicion that something is not as it seems to be. This attitude, exhibited amongst the study
populations, could make an approach like a survey, less successful. Hence, although the
interviewing was difficult, the researcher became convinced it was the best way to acquire
useful, relevant data.

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Because of the limitations of documentary sources, this study, to a large extent, depended on
the responses from the respondents and the experience of the researcher obtained from
participation and observation of the respondent’s daily activities in the village markets.
During the pilot stage, a focus group discussion was conducted in order to have a deeper
understanding of the socio cultural impact on entrepreneurship. The responses obtained from
a group were different from the responses obtained from face to face individual interviews,
and there was the challenge of respondents not wanting to lose face in front of their
colleagues. The researcher then decided to abandon it as an approach and immersed herself
in observation, conversation and individual in depth interviews.

5.4.2 Fieldwork experience.

During the course of her studies as a research student, the researcher was informed by
methodological classes on the importance of using qualitative research as the most
appropriate methodology when studying a social phenomenon. The aim was to understand
and interpret the researcher’s understanding from the respondents’ own view and the
meaning they place on their social world. As an ethnographer, the researcher interacted with
respondents in their daily lives and learnt how their systems work, what their rules are,
language and conduct. This helped to easily interact and develop relationships which allowed
free conversation most of the time. The approach helped the researcher to later develop more
informal conversation in a way which did not look like a question and answer session. When
interacting with respondents, the researcher has to maintain innocence and appear naïve with
the aim of wanting to know what was going on. The researcher carried out conversations by
being a good listener to the stories of the poor rural female entrepreneurs as narrated. Now
and then the researcher would ask for clarification of how the socio cultural factors
influenced the conduct of their business activities. The researcher also observed carefully
what was going on around her, including the interaction between the women and other
respondents, such as with the local government officials, and other persons who were not the
direct respondents to the study. The researcher observed the process of entrepreneurship
unfolding in front of her eyes. This kind of approach, which aims at cognitive and insightful
understanding, has its origin in Webers’s Vestehen, where the objective is to “understand”
(in Buame, 1996:57).

As said earlier, when undertaking an ethnographic study, the researcher aims at getting as
close as possible to respondents during field work but at the same time maintaining the social

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distance and being cautious of turning native. The approach assisted the researcher to get to
know the respondents’ beliefs, values, morals, ideas, experiences and the way they
conducted their entrepreneurial activities. Spending a prolonged time in the field had its
advantages. It allowed the researcher to form relationships with respondents which were
beneficial to both sides. The respondents could trust the researcher and provide more reliable
information than if it could have been otherwise. The participation in their market life
enabled the researcher to understand some aspects even without needing clarification, so the
chances of misinformation were reduced. The interviews were conducted after a lot of
information had been gathered through critical observation and from the information
obtained from other sources, such as the local government office. The data from the local
government office was not entirely reliable, that the researcher largely depended on the
information given from the horse’s mouth: the respondents themselves.

5.4.3 The sampling strategy and sample population

“The research question shapes the selection of a place and people or program to study”
David Fetterman, 1998: 32

In developing countries, where there are limitations on developing sampling frames, a

common sampling technique used is purposeful sampling. This technique has been used in
studies like Women Entrepreneurship Development and Empowerment in Tanzania by
Makombe (2006). This proved very helpful in Patandi because the number of poor rural
female entrepreneurs operating each market day ranged from 2,500 to 5,000. For Kongowe
and Ruvu Darajani, where the number of women micro-entrepreneurs was small, the task of
locating the respondents was easier. The women, who were selected from a large population
of female entrepreneurs, met the criteria which were: age, type of enterprise operated the
different performance levels of the enterprise, ownership and management of the enterprise,
and any other contrasting features, like physical disability and the presence of dependants
when undertaking their entrepreneurial activities. The case was different at Patandi village
where sampling was done after prolonged observations of the different sections of the
market. Respondents were observed in a group and separately. Many respondents did meet
the criteria the researcher had to look for extra point in order to include them in the sample.
Some of the points were leadership and disability. These criteria were chosen in order to
examine whether they had any significant influence on the way the poor rural female
entrepreneurs undertake their daily activities and to diversify the sample size.

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The set criteria were important because they allowed poor rural female entrepreneurs of
different ages to be included in the sample. The type of enterprise operated allowed for
diversification of different types of micro-enterprises undertaken by these women.The
ownership and management of enterprise excluded those who were employed so as to allow
the researcher to study the enterprises and draw conclusions on how the socio-cultural
factors may have impacted on how these poor rural female entrepreneurs undertake their
activities. The selections based on religion and ethnic origin were dropped because there was
a concentration of indigenous tribes and popular religious faith depending on the locality of
the respondents. The issues of ethnicity and religion were used to show the general picture of
the background of respondents.

In all the three villages, the researcher first contacted the local government village officers as
an entry point. They provided useful ground information on the status of female
entrepreneurship in their villages. Some intended respondents were not reached because they
had stopped operating, temporarily or permanently, during the fieldwork process. As there
was no register of female entrepreneurs, the researcher had to depend on the presence of the
women entrepreneurs on their operating premises.

A total of thirty operating poor rural female entrepreneurs were selected from the three
villages. Ten respondents were selected from each village. The number was convenient for
comparison across cases. A further nine non-operating poor rural female entrepreneurs were
selected using snowball sampling because it was not easy to get willing non-operating
entrepreneurs to participate in the study. Their number was again for convenience purposes,
three from each village. The selection allowed maximum variation and diversity within
setting and across settings.

In sampling respondents, the first task was to locate the poor rural female entrepreneurs to
participate in the study. After much consideration of time and finance, the researcher decided
to study female entrepreneurs who operated in their local markets. This was the only place
where there was a concentration of female entrepreneurs, undertaking a wide range of
economic and socio-activities. In the researcher’s experience as a voluntary worker with
female entrepreneurs, the first source of information was to go to operating MFIs in the
village. To the disappointment of the researcher, the register of females who take loans with

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the relevant MFIs was not made available because of undisclosed reasons as a result of data
protection issues. Therefore, the only information obtained was the list of some women who
obtained loans from MFIs through the local government office. The list did not correspond
with the actual number of poor rural female entrepreneurs who operated in the village
markets. There were a substantial number of loan recipients who did not do any business.
They belonged to loaning groups and, if they could pay back their loans, the MFIs did not
have any objection. The women who took loans did not give their work address only their
home address. At least all active respondents could be found in or around the market. It was
found that as a procedure and some sort of assurance, all loans were to be seconded by the
local government office.

The problem came that there was no proper record of who applied for the loan and who got
and who did not get it. Although confusing as a practice, some women got loans in groups,
which were not in business with but only socially connected, like family or friends. For
Kongowe and Ruvu Darajani the revenue collector knew all the women who operated in the
market. For Patandi it was not possible because of the number of respondents operating in
the market. After the researcher introduced herself and produced a letter of introduction from
the University and the Ministry of Education in Tanzania, she was then introduced to the
market leaders, who later on introduced her to the operating women entrepreneurs. That was
the case for Kongowe and Patandi. The situation was different for the village of Ruvu
Darajani, where there was no organisation of poor rural female entrepreneurs so the
researcher was introduced to them directly. At some point the researcher had to introduce
herself directly to the respondents.

Very few women had formal businesses, while the majority had informal businesses, which
included economic activities too small to be registered and not under any government formal
controls, like taxes. Almost all the businesses examined fell under this category except one
respondent who operated a registered lady’s hair dressing salon. They included businesses
like food vending, tailoring, selling farm products, mixed items stall (genge) small shops,
fish mongering, and all petty trading activities. Based on the aim of the study, it did not
matter whether they had a registered business or a permanent business address. The formal
status of the respondents had no bearing on the theoretical implication. However, building
the relationship first was very important to avoid mistrust and the researcher also used this
time to study how the poor rural female entrepreneurs operated in the village markets.

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5.4.4 Data collection

Data were collected from November 2006 to January 2008. The researcher collected data
from the three sites at intervals. There were interruptions in the interviews from fellow
traders and customers and when respondents were not around the market for one reason or
the other or when attending to various social obligations.All these were part and parcel of
the respondents’ lives. The noted interruptions included family illnesses, funerals, weddings,
religious celebrations and, in the case of the Pwani region, traditional celebrations. In these
circumstances collecting data proved to be more difficult and called for considerable
patience.

Conducting field work in a poor country like Tanzania presents challenges and difficulties.
Most people especially in rural areas have been involved in programmes like poverty
alleviation; HIV/AIDS; and also election campaigns for political parties and local
government. When conducting such surveys or programmes, the organizers have always
included an aspect of payment to get people on their side, or to get the information they
wanted; in some cases respondents were given soft drink in order to get information.
However, due to limited resources, the researcher was not able to offer these inducements.
The researcher had to express herself and clearly explain the purpose of the research that it
was not in any way related to any profit making body. At the end, most respondents agreed
to cooperate without anticipating any kind of payment from the researcher. The research
relied on primary sources of data which are the respondents and their settings. Other sources
such as documentary materials helped to give a general picture of what was going on in the
study sites, although the documents had some deficiencies in terms of being updated,
completeness and accuracy.

Data collection was done in three phases in every village. The first phase involved getting
access and building rapport. The first week of field work was used to do an exploratory study
of the field and its settings. The aim of this exploratory stage was to familiarize with the
respondents and their environment. That time was also used to establish the necessary
contacts formally and informally. This helped in laying the foundation for a better working
rapport and developing relationships that would help avoid mistrust and suspicion. Lastly,
the situation analysis was carried out to get an indication of the patterns and themes which
are likely to emerge from the research. Figure 5.1illustrates the sampling strategy.

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 Figure 5.1 Sampling procedure

Source: Author

5.4.5 Gaining access

Gaining access and gaining trust are two different things. In my case, gaining access was not
a problem. As soon as I presented an introductory letter from the Ministry of Education that I
was doing research, the village local government officials took me on board. They
introduced me to all the relevant people as far as the village market was concerned. As said
earlier, these officers were not always popular. I needed a dual entry strategy to gain access
to the respondents and their activities. That took time, with the exception of Kongowe, where
I met an old colleague who was a teacher like myself and he introduced me to some of the
respondents and made access easier. For Ruvu Darajani and Patandi, it started like going on
a blind date, not knowing what to expect.

Most respondents were suspicious of people they know nothing about. People were talking
and word got around that a researcher was involved in a study, but there were different
versions of “the study” the researcher was involved with. But when they encountered the

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researcher in most days, some of them started speaking to her, and those people became the
researcher’s gate keepers. There were more than three in each village because the researcher
did not want to be in conflict with any socio-circles they belonged to. When the researcher
became one of them, they showed trust and confidence in her. Sometimes they shared with
the researcher the most intimate information about themselves or others. They came to know
that the researcher did not mean any harm and they wished her well in her study.

5.4.6 Interpersonal observation

The first weeks of field work were used for field acclimatization and exploration of the
locations to be studied. In order to gain a perspective of events the researcher endeavoured to
establish contact with people she knew previously to assist her in developing a rapport with
respondents and to develop relationship which might promote trust.

5.5 Ethical issues

The research was carried out according to the Research Ethics Policy of The Robert Gordon
University, and the Data Protection Legislation Act in Tanzania. For this research, ethical
approval was obtained from the University prior to the field work. This guaranteed that all
participants were fully briefed and protected throughout the research process, that is, during
data collection, analysis and evaluation of findings, presentation and reporting of findings.
Respondents were asked for their consent in the whole process of collecting, analyzing and
writing research report. Furthermore, respondents were requested to give consent if the
research is presented and published. In undertaking this study ethical considerations were
considered right from the initial stages of the research process, that is, the proposal. This was
observed in identifying the research problem, which was how the socio cultural factors
influence the performance of rural female entrepreneurs. This problem was identified as
being important to the respondents and the entire population of women entrepreneurs in the
studied setting.

As explained earlier before beginning field work the researcher requested permission from
the Ministry of Education to conduct research. The researcher then proceeded to seek
permission from the three villages to be studied. The village authority was also notified of
the time scale, the impacts and the outcome of the research. The researcher also developed
an informed consent in form of a letter which was read or explained to the respondents,
rather than providing the letter for respondents to read, as some of the respondents did not

80
know how to read and write. It also maintained consistency for all respondents. The letter,
which is in the appendix, acknowledged the respondents’ rights to voluntarily participate in
the study and to withdraw at any time so that the respondents were not forced or coerced to
participate in the study. The purpose and procedures of the study were communicated in the
letter or explanation. Respondents were also notified of their right to ask questions, get
feedback from the findings and have their privacy respected and to be informed of any
benefit arising from the study (Creswell, 2003:64 - 65).

Respondents agreed to have their real names printed on the report, and were happy for their
names to appear in any work which may be presented or published. Those who allowed the
researcher to take their photos they gave consent for the photos to be published. The
researcher made sure that accurate information was provided to respondents and officials. As
Creswell (2003:67) notes, this research is committed to the avoidance of words, phrases or
language that are biased against a person because of gender, ethnic group, age, religion, or
disability. This avoids untrue, deceptive and doctored results (Kombo and Tromp,
2006:132).

5.6 Conclusions

In this chapter the researcher presented the research methodology and the procedures that
were used. The study was conducted in three villages in Tanzania. The main respondents of
the study were the poor rural female entrepreneurs. The study was designed using an
ethnographic case study approach. Data was collected using field observation, in-depth
interviews and life stories were collected. The researcher presented the field work
experiences and the role played during the data collection phase. The data will be analysed
using a sustainable livelihood framework and using ethnographic content analysis whereby
descriptive accounts will be presented, then data will be analysed and an interpretation on
how the social cultural factors may have impacted on how women in developing countries
will be presented.

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 CHAPTER SIX

RESEARCH CONTEXT

6.0 Introduction

This chapter is preceded by five chapters which have introduced the study, looked into the
national context of the study area and the pertinent literature. The methodology and methods
for undertaking the study have been discussed. The theoretical framework for the study has
also been presented. This chapter is intended to present the descriptive accounts in a
chronological order; the way the settings were studied, the order the respondents were
interviewed and the way the researcher ordered the description as far as the research events
were concerned (Wolcott 1994:17-23). It starts with the description of the setting, followed
by the descriptive accounts of the respondents and events and lastly it highlights the facts as
illustrated in the analytical framework.

6.1 The settings: Description of the village markets

This section presents the descriptive accounts of the village markets studied. It highlights the
location of the markets; the infrastructure present and the type of businesses operated by the
respondents. The description is presented in the order the village markets were studied i.e.
Kongowe, Ruvu Darajani and Tengeru that caters for Patandi village. These are typical
examples of the rural village markets in most developing countries. These markets portray
the commercial side of social life and the social side of commercial life. Most of these
markets are quite informal in their operations. However, a few formal markets can be found
where the operations are more organised. There also exist some differences amongst village
markets depending on the climate, agricultural potential, socio cultural factors influencing
residents of the village in question and abundance of produce.

6.1.1 Location of the village markets

This subsection describes the individual markets. It describes the location of the markets, in
relation to accessibility from trunk roads.

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i) The Kongowe market is situated within 100 metres from the main trunk road popularly
known as "Morogoro Highway”. The road is the main route from Dar es Salaam to
mainland Tanzania and the neighbouring countries of Malawi, Zambia, Kenya,
Uganda, Rwanda and Burundi. The market is situated on the left hand side of the road
when you come from Dar es Salaam.

ii) The Ruvu Darajani market is located at a very popular bus stop such that it is not clear
whether Ruvu Darajani is a popular bus stop or a popular market along the Morogoro
road. The market stretches about 200 metres and is less than fifty metres from the
Ruvu river bridge, hence the name Ruvu Darajani which simply means “at the Ruvu
bridge”.

iii) The Tengeru market is located along the Moshi to Arusha road, the main route to
neighbouring Kenya and Uganda. It is a transformation of the old market which was
on the left hand side when you come from Arusha. The new market is on the right
hand side. It is less than 100 metres from the trunk road.

6.1.2 Market Infrastructure

This subsection describes the market infrastructure. It presents the type of structures that are
used by rural female entrepreneurs in the village markets, the services provided and the fees
charges for the use of the market infrastructure.

i) The Kongowe market operates on land which is owned privately by a landlord who
leases the spaces to individuals, who in turn construct stalls which are used for their
enterprise or rented to other users. The market occupies an area of approximately thirty
metres long and fifteen metres wide, the main market area is not fenced or enclosed by
a wall but it is clear where it starts and where it ends. Before you enter the market, the
area is surrounded by a number of small shops, cafes, hair dressing salons and other
trading outlets, some sort of symbiotic trading.

The market consists of small stalls made from mud and tree poles that are locally available
building materials. Large poles are used as beams and smaller poles are laid horizontally to
create box-like structures with poles running vertically and horizontally. The structures are

83
secured with ropes and the spaces are filled with wet clay and allowed to dry before use.
Occasionally mud or cement plaster is applied to smoothen the walls.

The stalls are arranged on both sides of the market area and are divided by a narrow foot
passage. There is no form of flooring in these stalls except the natural compacted soil
through human activities over time. It looks and feels like cement flooring. The individual
stalls, which are commonly known as genge, are roofed using palm tree thatched grass and
occasionally pieces of corrugated iron sheets. There are door frames and locally made doors
for some individual stalls, but most stalls have no doors except an opening usually created by
either placing display tables or arranging goods deliberately leaving space as an entrance and
exit door. Individual stalls vary in size. Some are about four metres long and three metres
wide and others are approximately three metres long and two metres wide. There are a total
of nineteen stalls, nine on one side and ten on the other side. The stalls are the main premises
where different trading activities are carried out. There is an open space which surrounds the
main market and this is the place where most female micro-entrepreneurs operate.

The main furniture in the stalls is locally made of large tables used to display the
commodities. These tables are made from locally available poles and local trees which act as
the frames, topped mainly with soft wood or wood planks, or old wooden boxes. Just before
placing the commodities on the table for display, a polythene sheet or sack is laid on top of
the table. This acts as a protector to avoid scratching of commodities and a safe place where
money is kept underneath. The tables have small partitions, like horizontal shelves for
different commodities, or left flat and different commodities are used as partitions. The
traders sit on stools made of tree trunks, others on logs, sacks full of grains, or on old broken
plastic or wooden chairs. The stalls where cooked food is sold are simple enclosures made
from a mixture of mud walls and plastic sheets. There are small benches and tables made
mainly from old softwood boxes joined together. The food is cooked outside these
enclosures and brought in to be served.

The front entrance of the market is observed from the bus stand and extended to the small
shops and other trading outlets. The back entrance is observed from the village area past the
old Morogoro road to the market.

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There is one toilet for market users and other traders, pub customers and passersby.
Sometimes market traders use toilet facilities in the local bar or the nearest pubs. In some
cases traders ask to use residential toilets. There is no reliable source of water and electricity.

Storage of commodities in individual stalls is the responsibility of the traders. As noted

earlier, bulky commodities in sacks are stored at the back of the stall and they also act as
walls or boundaries for individual stalls. At the end of the day the commodities are covered,
usually by plastic sheets, and stones or pieces of broken cement bricks are placed at the
corners of the plastic sheet to avoid the sheets from being carried away easily.

The overall security of the market is observed by two militia men who are paid from
contributions made by the traders. If theft occurs in undefined circumstances within the
market, the guards are held responsible and are required to compensate for the stolen
commodities.

All the waste products from the market are disposed off in a big pit approximately four
metres in diameter and two metres deep. Once full, it is covered by earth and another one is
dug. This work is done by local people who are paid by the traders.

ii) Ruvu Darajani market has no specific layout, but businesses are almost in a straight
line.Most traders would place their business anywhere provided it is on one side of the
road. The traders rent space from the houses which overlook the main road and
construct their own stalls or use the roadside or house pavements to do their business.

The structures which are used for different types of businesses and the furniture are similar
to those found at Kongowe. These stalls are used for genge business, cooked food, small
shops and various businesses, depending on the season, availability and opportunity.
Photograph 6.1 shows the typical stall at the Ruvu Darajani market.

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Photograph 6.1 Typical stall at Ruvu Darajani market

Source: Researcher’s photographs

Other businesses are conducted in open spaces with tables for display, or even just pieces of
sacks on the ground. Some businesses, like the local bar, are located behind the main area
facing the main road. These are operated in more or less permanent structures made from
local building materials or concrete blocks with corrugated iron sheets or thatched roofs. The
vegetables and fruits business is carried out by packing the equivalent of one kilogram of
vegetables or fruits in thin carrier bags, and then arranged on top of the table and the traders
wait for customers. Whenever buses, personal cars and trucks stop, the traders would grab a
few bags and run to the vehicle to try their luck. Also the vegetables or fruits are placed in
plastic or tin containers of twenty, ten or five litre capacity. The bulk of the produce is stored
in the nearby houses.

However, there is a building which is supposed to be the local market just a few meters from
the market area; it was built by a donation from JICA for the vegetable grower’s association
project. This building is currently not used for the intended purpose because the project
failed. Instead, that building is used as the village local government office and for village
meetings.

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There are no basic facilities at this market but traders find ways of getting around this. There
is no public toilet facility for the market traders, whenever in need they usually go to the pub
or ask people from nearby houses, otherwise they go to the bushes around. There is no
reliable source of tap water. Market waste is accumulated in a pit at the back of the main area
and when it is filled up, the traders dig a new pit.

ii) The Tengeru market is popularly known as the women’s market because the majority
of operators are women. It was built by donations from local and international rotary
clubs. The market has an education facility for women to improve their skills in
horticulture, in addition to receiving education on how to improve their health. It was
officially opened on 12th February 2005 by the then President of Tanzania, His
Excellence Benjamin William Mkapa. On its opening day, the market recorded 2,553
women traders and about 20,000 people visited the market. Photograph 6.2 shows the
layout of the Tengeru market.

Photograph 6.2 The Tengeru market

Source: travel.webshots.com

The market extends to an area of about three acres and is fenced by a four metre high
security wall. It consists of two main shelters, which provide working spaces for traders.
Ninety nine percent of all traders in this market are women. The general layout of the market

87
facilities in the market is more organised. It includes basic facilities, unlike the other markets
where they are very limited or completely absent. The stalls in this market are well
constructed using stronger building materials. There are two main divisions that are further
divided into sections, based on the type of produce being sold. There are seven main
sections, which are; dry maize, small grains, bananas, tubers, vegetables and fruits; legumes
and cooked food. On the vegetables and fruits section, the partitions are made of aluminium
pipes and wire mesh to form shelves suitable for selling vegetables and fruits, while the other
sections comprised of a strong, concrete floor.

The market is roofed by corrugated iron sheets and has security gates. There are well
constructed spaces for the display of products. However, traders use locally available seats
which range from sacks of their products, chairs, empty soft drink crates and any other
means that will make them feel comfortable. There are different sized plastic or aluminium
containers which are used for storing produce. The only section which had more furniture is
the cooked food section, where about forty women operate. It comprises of simple tables and
benches made from wood and some traders use chairs. At the time of research construction
was going on for this part of the market to include facilities such as running tap water. Other
sections, for example the dry grains, have large sieves which are used to sieve up to fifty
kilograms of grains at once. These are made of large wooden frames with wire mesh forming
a sieve. Despite having clear boundaries for individual stalls, traders store their commodities
in heaps, which also serve as a wall between one trader and another.

The market has modern toilet facilities. There are separate toilets for men and women and
there is also one for the disabled. Cleaning of the market is done by local contractors; for
example at the time of research there was a group of women who had a contract to clean the
whole market four days a week. Waste was collected after every market day and transferred
to a dumping area twice a week.

There is a reliable source of water and electricity. The market has a parking area for trucks,
Lorries, pickups and carts which come from the entrance. Whenever a vehicle or cart enters
the market there is a fee charged depending on the size of the vehicle and there is a flat rate
for carts. Revenue is collected every market day by an agent who had won a tender for
collection of revenue. The revenue depended on the type and size of the business. There are
security guards at the gates who oversee the safety and security of the market and ensure that

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all traders pay revenue when they operate in the market. They also collect revenue and place
a stamp for identification of produce that have been paid for. The security guards are the
employees of the revenue collection agency.

6.1.3 Types of businesses

This section describes types of enterprises and activities that were found taking place in the
studied village markets.
i) At Kongowe market different types of businesses are found to be carried out by the
female entrepreneurs. These include different types of fresh and cooked food, items of
clothing, genges, buns, vegetables, cooked finger millet porridge, hair dressing salons,
fresh or roasted tubers and roast fish. The common business is cooked food business.

ii) At Ruvu Darajani market, different types of businesses are found on both sides of the
main trunk road and surrounding areas. The businesses found here include fresh and
locally processed fish, vegetables, potatoes and fruits. The market also has a line of
stalls and small shops including food stalls, a small shop, a barbecued goat meat stall
and a tailoring business. The cooked food business is the most common business
mainly carried out by women. The type of food cooked and the size differs across the
market. Some traders cook from big pans while others cook small amounts of food.
Photographs 6.4 and 6.5 compare the cooked food business in terms of pan sizes used.

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Photograph 6.3 Food trading entrepreneur

Source: Researcher’s photographs

Photograph 6.4 Sofia with her big pans of food

Source: Researcher’s photographs

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 iii) At the Tengeru market, the businesses are grouped into different categories.
Businesses that are related are carried out on the same area, termed as a section.
As noted earlier, about seven sections are found. These include the dry maize
section; small grains section (soya beans, wheat and finger millet); banana and
tubers section (bananas, yams, cassava and sweet potatoes); vegetables section
(tomatoes, spinach, carrot, cabbage, and cauliflower); fruits section (oranges,
mangoes, avocados); legumes sections (beans, peas and nuts) and cooked food
section (local foods and bites). Photograph 6.5 shows the banana section at the
Tengeru market.

Source: travel.webshots.com

This section has described the three markets which were studied. The location of the
markets, infrastructure and the types of businesses which were operating at the time of
research have been presented. There is a need now to look at the activities in the three
markets.

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6.2 Marketing activities

This section describes the activities that were observed taking place at the village markets.
The organisation of the markets is also presented. The researcher also describes a typical day
in these markets.

i) The activities at Kongowe market are coordinated by the market committee, which is
led by a chairperson and a market secretary. The market secretary is the active leader
of the market to oversee the daily activities and is responsible for resolving market
conflicts before they are referred to the local government office. The market secretary
is also responsible for the collection of rent from the traders on behalf of the stall
owners or the landlord. This is so because there are people who have rented spaces in
this market, and have built stalls but don’t operate any business. In this market it is not
uncommon to find a stall with a chain of ownership up to five people.

The day starts very early at Kongowe village market. There are a lot of activities in the
market area particularly in the cooked food section. The female entrepreneurs arrive at the
market as early as 5 o’clock in the morning and start cleaning their premises, sweeping with
standing brooms and arranging kitchen utensils before starting the fire. Firewood and
charcoal are the main sources of fuel. They start to prepare breakfast, which involves
cooking the popular dried red kidney beans; these take some time to cook. The female micro-
entrepreneurs are observed running to the nearby shops to get some commodities to use for
breakfast. The most popular breakfast in this market is black tea taken with a variety of buns
like maandazi or doughnuts, rice buns and chapati. Sometimes bread is bought from shops
and sold to customers. Cooked red beans with coconut milk are the most popular
accompaniment of breakfast. Meanwhile, preparation for bites to go with the tea is done
simultaneously with other preparations and it is an ongoing activity throughout breakfast
time. Breakfast is taken by customers as early as 6 o’clock in the morning. The popularity of
the stall depends on taste of buns and beans. Once breakfast is served, preparation for lunch
starts. The most popular food stuffs are rice and ugali or stiff porridge which is eaten with
beans or meat or fish and vegetables. Sometime pilau or spiced rice is prepared. In most
stalls food is served until 5 or 6 o’clock in the evening. Very few stalls will continue to
operate until 10 o’clock at night.

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There is another type of cooked food whereby finger millet porridge is prepared at home and
put in flasks and then sold to people at different places including the market area. Aikaeli is
the only respondent doing this kind of business. Other activities here include businesses like
genge, selling of vegetables, fish, tomatoes and onions. There are also non food businesses
which operate around the market such as ladies hair dressing salon and a pub.

ii) At Ruvu Darajani there is no established market leadership. People who have occupied
the market longer seem to have more say on market issues. There was no revenue
collection at the time of research because the villagers agreed to abolish it as many
people could not afford to pay daily. Whenever there is a problem within the market
the village local government leadership intervenes. Information for traders is also
passed through the same channel.

Like in Kongowe market, at Ruvu Darajani activities also start as early as 5 o’clock in the
morning. Respondents start their businesses at different times in the morning, depending on
the type of business and family commitment. Cooked food business is mainly operated by
women except roast goat meat which can be operated by men. Those with babies and
children need more preparation at home before they set off to the market, although some
respondents take their children with them. Cleaning and food preparation for breakfast is less
vigorous than Kongowe. Instead lunch preparation is the main activity in cooked food
business. Preparation for lunch starts late morning. The types of food stuffs prepared at Ruvu
Darajani are not different from those being prepared at Kongowe.

Other activities at Ruvu Darajani are genges, selling of fresh and roasted tubers, selling
roasted fish, and small shops. There is also a tailor who operates her business from the
pavements of the family house. Local brew is another business activity at Ruvu Darajani.

iii) At Tengeru market, the activities are more organised. Activities in this market do not
start very early as in Kongowe or Ruvu Darajani. The markets operate fully only two
days a week, on Wednesdays and on Saturdays with the exception of a few traders
who operate Monday to Saturday. As noted in the previous section the main activities
in this market is selling of grains. The first traders to arrive at the market around 6.00
or 6.30 in the morning are those in the cooked food sections. Some come with
breakfast already made from home whilst some cook at the market. The other traders

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 start coming to the market from 7.30 in the morning onwards. Some come as late as 11
o’clock in the morning depending on the commitments they had to attend before
coming to the market and distance they travel or walk to the market. Once in the
market, the grain traders start preparations for the day. They start with cleaning using
trays and big sieves mentioned earlier. Some sell only one type of grains and others
more than one type. The common combinations are dry maize and dry beans or
different types of smaller grains like millets, sorghum, wheat and sorghum. Customers
start coming to the market around 8 in the morning. The number of customers at the
market varies every day, but there are more than 3,000 customers every market day.

This section has described the activities carried out in the village markets. It presented the
organization or leadership of the market and how activities are carried out. Emphasis was
placed for description of main activities in each village market i.e. for Kongowe and Ruvu
Darajani the focus was on cooked food businesses and for Tengeru market the focus was on
dry grains section. The following section looks at the individual rural female entrepreneurs
who operate in these markets.

6.3 Female micro-entrepreneurs

In this section, the researcher presents a description of the poor rural female entrepreneurs
studied from the three rural markets. It includes their profile and activities they undertake in
order to earn a living. For the purpose of enhancing the understanding how these poor rural
female entrepreneurs undertake their activities; the researcher has presented a table
summarizing the personal profiles of the respondents which is followed by the accounts of
some of the respondents. Table 6.1 presents the personal profiles of the female micro
entrepreneurs.

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Table 6.1 Personal Profiles of Operating Women Entrepreneurs

MARITAL
NAME AGE TRIBE RELIGION STATUS
KONGOWE
Mwajuma
Ramadhani 60 Kwere Muslim Widow
Rukia Mohamed 49 Zaramo Muslim Widow
Neema Said 48 Kwere Muslim Married
Tina Emmanuel 30 haya Christian Single
Mwajuma Ally 22 Zaramo Muslim Divorced
Asha Kimange 20 Zaramo Muslim Single
Mary Kamanda 45 Nyakyusa Christian Widow
Aikaeli Macha 25 Chagga Christian Married
Grace Mshana 30 Pare Christian Married
Mwanahamisi Iddi 49 Zaramo Muslim Widow
RUVU DARAJANI
Eva Timothoe 53 Ngoni Christian Divorced
Rehema Said 24 Zaramo Muslim Married
Sofia Thomas 40 Kwere Christian Divorced
Sofia Sefu 32 Kwere Muslim Married
Ibula Abdallah
Kihuja 64 Ndendeule Muslim Widow
Mariam Ramadhani 34 Zaramo Muslim Married
Zamda Shamte 19 Kwere Muslim Single
Asinate Daudi 27 Sambaa Christian Single
Zawadi Ally 24 Zaramo Muslim Single
Asha Hassani 49 Zaramo Muslim Married
PATANDI
Asinati Pallangyo 49 Meru Christian Single
Raheli Somi 54 Meru Christian Married
Fausta Emmanuel 37 Chagga Christian Widow
Apaikunda Max
Akyoo 45 Meru Christian Married
Lillian Mushi 40 Meru Christian Divorced
Zairati Yusufu 37 Rangi Muslim Married
Luyana Elia sikawa 37 Meru Christian Widow
Aishi Kitomari 21 Meru Christian Single
Asanjo Kaaya 30 Meru Christian Married
Elinuru Gadi 47 Meru Christian Married

Source: Author

The following are the accounts of the some of the operating female entrepreneurs from the
three villages.

6.3.1 Mwajuma of Kongowe market

There are two respondents at Kongowe market who went by the name of Mwajuma. The
younger Mwajuma operates a cooked food stall. She was 22 years old at the time of research.

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She was divorced and had one child aged two. Her father is a teacher, and her mother a
farmer. She completed primary education. She comes from a family of six siblings. Some of
her brothers are employed, some sisters married and the younger ones were still at school.
She explains that she did not continue after primary education because she was not good at
school. She stayed home helping her mother until maturity, and then according to Zaramo
tradition she was kept indoors and got married in Dar es Salaam. Mwajuma had a pleasant
childhood. She says her parents used to cater for all her needs. Mwajuma said
“...life as a family was good and we had a close family relationship, but this did not warrant
me asking for money from members of my family all the time”.
She got divorced and came back to Kongowe where she needed to do something to take care
of her daughter and herself. She says that’s why she started her business.

Mwajuma worked three or five days a week depending on how her child was. She came to
the market with her daughter and sometimes worked with her on her back. Later, during the
day, one of her friends would come to the stall to help her and sometimes would take the
daughter away and bring her back later on. Mwajuma usually worked until 5 or 6 o’clock in
the evening. Then she would go home after collecting her utensils and storing them in a
nearby house. On her way home, she would pass by a shop to pay for anything she had
taken on credit for her business and get something for her family. Occasionally she would
stop and chat to other women who operate similar businesses opposite her business.

6.3.2 Mary the cooked food chairperson

Mary also operates a cooked food business. Mary’s age was forty-five at the time of the
research. She is a widow and had moved from Dar es Salaam where she had also operated a
cooked food business. She moved after the place where she was operating was demolished
by the government. She comes from a family of farmers in Mbeya region. Mary describes
life back home as being tough. She and her brothers had to work very hard. Her brothers are
now in business in the cities of Arusha and Dar es Salaam. Mary relates her story that, she
was very brilliant at school but did not get the opportunity to go to secondary school
because by then, there were very few secondary schools. When she was growing up she
moved from Mbeya to Dar es Salaam and came to live with her aunt who was dealing with
Batik cloth making. She helped her aunt, learnt the business but decided to start a cooked
food business instead. When she started this business, she got trained and qualified with
certificates from VETA (Vocational Education Training Authority). Mary got married and

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had four children. Her husband died and his relatives took her children and everything else
and left her with nothing.

When Mary moved to Kongowe she had no where to live. She slept in her stall and she was
usually up very early, as soon as the muezzin, the Islamic religious practitioner, proclaimed
the call for people to go to the mosque for prayers. The muezzin acts as an alarm clock for
most people. Mary would get up and start her day. She collects her bedding and put them in
a box, and then she would go to a neighbouring house to ask for permission to use the
outside toilet cum bathroom facility. She freshens herself up, sweeps the stall and starts the
fire. If young Mwajuma or others had started a fire, she goes and asks for a piece of lit
firewood and uses that to start her fire. Mary starts preparing breakfast and puts dry beans to
cook. Sometimes she would go to a shop and a butcher to buy or take on credit commodities
for breakfast and lunch. These would include dry beans, rice, wheat flour, cooking oil and
meat. Mary also sells small bunches of charcoal and uses the smallest pieces for her own
cooking. She also uses firewood especially for cooking beans. Then she would go to the
market and buy vegetables such as African spinach, onions, tomatoes, chillies, lemon or
lime, which are the common ingredients for her cooking. Mary is quite multi-tasking, such
that she does different activities at the same time, like cooking chapati, making soup and
serving customers. A lot of people were seen going to Mary’s stall, but the reason could not
be established. Her main customers included the travellers, passers by and workers from
nearby places, such as the police post. Mary continues making chapati and selling other
food commodities until 11 o’clock in the morning when the customers for breakfast are
almost finished.

Lunch had a different menu, mainly rice and ugali, African spinach or Chinese cabbage was
always available. On occasions, Mary makes the popular salad kachumbari, which consists
of tomatoes and onions with salt; chillies and lemon juice. Food is served from 11 o’clock
in the morning to 8 o’clock in the evening; a few customers come for an evening meal.
Throughout the day Mary sells cold drinks on her stall. She would buy a block of ice, puts
the bottles of soft drinks in a bucket and then would break the ice and put it on top of the
bottles.

Once Mary finishes, she collects her utensils and puts them in one corner to create a space
for her bedding for the night. Mary refreshed herself before she went out to see her friends.

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 She was usually back by 10 o’clock at night to sleep. Mary’s stall had neither door nor
windows. There were large pieces of cloth which she used as curtains, for security and
privacy. She usually joins two benches and makes a sleeping bed. Photograph 6.6 shows
Mary’s stall cum home.

Photograph 6.6 Mary with the researcher in her stall

Source: Local photographer

6.3.3. Aikaeli who sells millet porridge

Aikaeli, who was twenty five years of age at the time of research, originally came from
Kilimanjaro region. She moved to Kongowe with her husband, who works as a milling
machine operator. Her parents are both peasant farmers. She comes from a big family of ten
siblings where she is the youngest. Most of her siblings are involved in farming and petty
trading. Aikaeli completed primary school but she did not get an opportunity to go to
government secondary school. Her parents could not afford to take her to a private school.
After school, she stayed at home helping her parents until she got married. She moved to
Kongowe two years ago. Aikaeli recounts that life back home was hard. Her brothers and
sisters had their own lives so they did not help much. She got bored of just staying at home
and she decided to start the business of selling finger millet porridge, which was a new thing
to Kongowe people.

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Aikaeli sells finger millet porridge from a pair of flasks which she carries in a plastic basket.
She passes across the market area as part of her rounds. She sells porridge in small plastic
cups, very much a hand to hand business. She is around the market place sometimes as early
as 7 o’clock in the morning. When she collects the cups she also collects the money. Because
she follows the customers, sometimes she makes up to three rounds a day across the market.
When she finishes, she goes to the market and nearby shops to buy stuff for her business and
her family before going home. She does not operate on Sunday because she goes to church.

6.3.4 Tina operates the smallest business

Tina did not go to school. She came from Kigoma region where she lived with her brothers.
She is thirty years old. All her brothers had died of AIDS related diseases. She decided to
move to another place to start a new life. She was originally accompanied by a friend from
home, but who later abandoned her at Kongowe to look after herself. She met a middle-aged
friend and told him her situation. The man helped her to get a room and gave her TZS
1,500/= (70 pence). She used the money to start her business, selling tomatoes and onions
which she bought wholesale at the market or sometimes she went as far as Ruvu. She slept
on cardboard boxes for months before getting enough money to buy a mattress. She
recounts that life back home was very hard; they depended on peasant farming and selling
home-grown beans.

Tina operates outside the main market; she comes around 7 o’clock in the morning, carrying
an 18 litre capacity plastic bucket containing onions and tomatoes. She arranges the
commodities on a small table and sits on a stool and starts selling her commodities. She
arranges her commodities according to size, or in bunches. As the sun rises she protects
herself on the pavement of a shop overlooking her tomatoes. Her custom is slow but she is
always happy. She closes her daily business around 4 or 5 o’clock in the evening and goes
home. Tina is the female micro-entrepreneur who owns and operates the smallest business in
terms of size and volume of sales. She says, “…on the average I sell products of
approximately 2,000/= per day. I keep 500/= as profit and use the rest for capital”.

6.3.5 The elder Mwajuma who owns a genge

Mwajuma is the eldest respondent from Kongowe. She was sixty years old at the time of
research. Her parents were both peasant farmers. She has five siblings who were all farmers.
She did not go through formal education, nor did her female siblings. She explains that the

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girls were left home to look after the younger children and to cook for everybody who went
to the fields. She explains her occupation after reaching puberty, as getting married and
continuing to farm like her parents.

Mwajuma recalls life at home as being very difficult. Her parents did not earn enough to
sustain a basic living. Despite that, she describes the relationship as good back home.
Mwajuma explains that she had an unexplained disease which made her very weak. She
decided to go to her brother to get assistance. She was taken to hospital where she was
diagnosed to be suffering from malaria and typhoid. She received treatment and when she
felt better, she moved to Kongowe to join her younger son. While in Kongowe, she saw
other women doing business and she decided to try and see how it would work out.

Mwajuma used to have a stall, and when she could not afford the rent, she moved to the
pavement and when she had enough money, she rented back the stall. She comes to the
market at 7 o’clock in the morning. As soon as she is at her stall she puts ragged clothes on
top of her own clothes, which comprised a dress, and she also tied on a piece of cloth, a
khanga. A khanga is a traditional piece of fabric worn by many East African women. The
kitenge, the big sister to the khanga, is an African garment which is similar to a sarong and is
worn around the chest or waist, or both. It may even be worn over the head as a headscarf.
Mwajuma is always busy buying farm produce, charcoal, dried fish and rearranging the
commodities in smaller bundles. She uses the edge of her wrap to keep the money she gets
from her sales.

6.3.6 Neema moved from owning a pub to owning a guest house

Neema from Kongowe was forty-eight years old at the time of the research. Originally she
came from Chalinze, in a neighbouring district of Bagamoyo. Her father was a truck driver
while her mother sold local brew. She came from a family of seven siblings and she is the
oldest. She details the occupation of her siblings as doing nothing serious; they are involved
in odd jobs now and then. Her younger siblings are still at school. Neema finished primary
school but she did not do well and she claims that at that time girls were not encouraged to
study. She says another reason was that her parents were busy with other life occupations
than her schooling. As soon as she finished school she was kept inside for six months,
according to customs and traditions before she was married. She describes the economic
situation back home as very difficult and that, once she started earning some income, her

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relatives depended on her for money to buy personal things, or to start businesses, which did
not last long. She depicts her family relationship as very loving, helping each other and co-
operating during hard and happy times. She says her business grew from strength to strength
and had more than one business and she was doing well. She later moved to Kongowe to join
her husband.

Neema owns a café and a small pub; she is also involved in selling charcoal wholesale and
keeps a dairy cow. Neema starts to prepare items for the café at home. Usually she comes to
the market area around 10 o’clock in the morning, already well dressed. Her first stop is in
the café to see if everything is going well. Her café is relatively better than the rest in terms
of general appearance. Then she goes to the pub to see the barmaid and, if it is a loan
repayment day, she goes to the offices where the MFIs operate. She spends some time before
heading off to the bus stand. She usually boards a minibus, which either goes to Dar es
Salaam or to Chalinze in the other direction. She goes to Dar es Salaam to see how her
charcoal business is doing. When going the other direction, she goes to Chalinze to supervise
the pub she owns there and interacts with other business people and also looks for new
opportunities. Neema comes back in the evening, sometimes during the day depending on
where she went. Once back home, she goes again to the café and the pub and spends some
time. She claims to be well respected and other people come to her when they need advice or
when they need to borrow some money.

6.3.7 Sofia with the big pans at Ruvu Darajani

There are also two Sofias at Ruvu Darajani. One is a tailor and the other is involved in
cooked food business. Sofia was 32 years old at the time of research. She operates the largest
cooked food business at Ruvu Darajani market. Sofia did not attend any formal schooling.
Her mother died when she was eight years old, so she was brought up by her sister. There
were sixteen siblings from two mother and the same father. She gets along with those from
the same mother. When she reached puberty, she was secluded until she got married and got
one child. She says her husband could not give her everything because he was lazy and did
not want to work. She divorced him and got married again and moved to Ruvu Darajani to
live with the current husband.

Sofia lives on the right hand side of Morogoro Road from Dar es Salaam and she operates
her business on the same side of the road. She arrives very early in the morning carrying a

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heavy load on her head. Once at her stall, she leaves the load there and goes to a nearby
house where she comes out with another load of cooking pans and other utensils. She starts
the fire first before cleaning the cooking and eating areas. She goes to a small shop, (if it is
open), or continues with other duties if it is still closed. She grates the coconuts and prepares
onions for the beans. She makes chapati and tea on the premises. She regularly checks the
pan with the beans. Her customers start coming to her stall from 7 o’clock in the morning,
and they have tea and chapati. Once the beans are cooked, Sofia squeezes the grated coconut
to get the milk, which she adds to the beans, leaving them to simmer for some minutes. She
starts selling them with buns and chapati. Sofia continues selling breakfast while preparing
ingredients for lunch. She occasionally goes to the shop to get something, or to the genge for
vegetables and sometimes fish. Once in a while she cooks local chicken but always cooks
African spinach and makes a salad to go with the meals. She breaks for lunch and sometimes
her children come and have some food at the stall. She continues to serve customers with
breakfast till 12 noon when she starts to serve lunch.

Sofia finishes at around 3 or 4 o’clock in the afternoon when she starts to wash the
aluminium plates, bowls, spoons, pans and other utensils that she had used. She seldom has
any food left, if there is any leftover she takes it home for family consumption. After storing
bigger utensils to a nearby house, she goes to the shops to pay for whatever she had taken on
credit. She stops to talk to a few people or have a long chat with her friends before going
home. Some days, especially during weekends and religious holidays she appears well-
dressed and boards a minibus to Mlandizi. She is usually very talkative and very happy with
her achievements as she narrates “I am the only mama lishe (food vendor) who sells big pans
of food and finish everything before the evening”.

6.3.8 Rehema operates a genge with her husband

Rehema is twenty three years old. Rehema finished primary education in her home village of
Vigwaza. Rehema is married and has two children. She looks very smart as she always wears
lipstick and smart clothes. Most days she wears a t-shirt and a skirt and wraps a piece of
khanga around her waist. She also covers her head with colourful scarves. She used to work
in a local cafe, and then went on to live with her sister in Dar es Salaam. She says things did
not work out the way she expected so she came back to her village. She got married; got
divorced and married again. Rehema now operates a genge where she sells a range of small
items such as tomatoes, onions, packets of salt, dry black pepper, spices, dried small fish, tea

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bags, baking powder, soap, match boxes, cigarettes, cooking oil and seasonal vegetables. She
buys vegetables from nearby farmers and resells them for profit. Most of the vegetables are
grown locally, but when not in season, traders buy them from wholesalers from upcountry
who bring vegetables and fruits in trucks. Non food items for the genge are purchased
wholesale from Mlandizi, Chalinze or even Dar es Salaam.

Rehema comes to the market at 7 o’clock in the morning, carrying her baby on her back. She
also carries a plastic basket with some stuff for her baby and other things. Sometimes her
husband arrives before her. If she is on her own she opens the genge and starts to sort the
commodities; and checks if there are any spoiled vegetables, and throw them away.
Sometimes she increases the size of the vegetable bunches in order to sell them quickly
before they go bad. She often makes new packets of spices by using polythene bags.

She moved to Ruvu Darajani to join her husband. Her husband decided she would be better
off working alongside him to get the experience. Rehema also says:
“He is very jealous; at least here he can see me…”
The arrangement gives her husband time to go wholesale shopping and to look for other
business opportunities. Rehema points out that her husband cannot trust other people with
the business as they always steal.

Rehema attends to her child when the stall is not busy. She prepares breakfast for her and her
husband, if he is at the stall. She starts lunch preparation while selling the commodities.
Sometimes when she is needed to attend to the baby, she does this under the table where she
arranges beddings for the baby. This is where the baby sleeps while Rehema is working. She
stays at the stall until mid-afternoon then she packs her basket and goes home. Sometimes
she stays longer if her husband is not around the Ruvu area, as she has nobody to attend to at
home.

Rehema remembers that there were few opportunities for business back home. She
comments that people’s economic ability is very low, that is why most businesses fail.
People take items on credit because they need them, but they do not have the money to pay it
back. Her brothers left home to look for opportunities elsewhere.

6.3.9 Eva who sells local brew and is also a leader in the village

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Eva was fifty three years old at the time of research. She was one of the local village leaders.
She moved to Ruvu when she was still young, got married and had children. She says life at
home, where her father was a sisal cutter, was very difficult. Her mother used to trade in
different things to make ends meet. Eva describes her relationship with her sisters when
growing up, as very good and that they helped each other a lot. They also helped their
mother with farming, gardening and doing small businesses, when they were still at home.
Eva did not finish school because of family responsibilities. Her mother was ill and she had
to take care of her. She started selling local brew and farming, and is still doing the same job.
She comes from a big family of fourteen siblings from the same mother and father. Male
siblings are involved in farming and the female siblings are involved in the fish-mongering
business. She is now selling local brew in her own bar with her daughters and other relatives.
Eva is a local success story.

In the morning Eva is seen going to the fields, or sometimes she is observed going to attend a
village meeting. She stops now and then to speak to people. She starts very early by going
further into the village to order and buy local brew for the day, then she leaves the girls to
manage the business. She is also a leader of the women in her lending group. She is very
busy when it is a repayment day, going to different places to collect the money from her
members. Sometimes she is seen going to the fields in the afternoon and she stays there until
6 in the evening. She says she is much respected around the village.

6.3.10 Sophia is a tailor working from home

The other Sophia was thirty three years old at the time of research. She operates a tailoring
business with one sewing machine, outside her family home. Sofia Thomas describes life
after her parent’s death as very difficult. She says after primary school she managed to get a
job at TANITA, a cashew nut processing factory. Her brothers left home to look for
opportunities in Dar es Salaam. She got married, but unfortunately did not have any children
and because of that she was divorced. She had always wanted to train in tailoring but her
husband would not let her. She was made redundant from the cashew factory and she says
that was a big opportunity for her. She used her redundancy money to do a course in
tailoring, bought a sewing machine and started her business in the family house. Sofia is
considered to be a loner with very few friends.

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Sofia comes out of the house at 8 or 9 o’clock in the morning. She takes the sewing machine
outside and starts arranging the pieces of fabric to be cut. She puts pieces of clothing and
other accessories on the floor. She is very slow in her movements, seeming to be in no hurry
while doing things. People pass outside her premises and chat to her. Sometimes they bring
pieces of khanga to be hemmed, or they bring clothes for her to repair. Occasionally, women
bring pieces of fabric to make dresses. She does not make male clothing, except for children.
Sofia goes inside when she is having her meals, which she has either prepared herself or
bought from nearby mama lishe. Sometimes Rehema, her neighbour, comes with her child
and sits on the cement floor chatting to Sofia. Photograph 6.7 shows Sofia in front of her
house where she operates her business.

Photograph 6.7: Sofia, Rehema and the researcher chatting

Source: Researcher’s photograph

6.3.11 Ibula sells cassava and sweet potatoes from her own farm

Ibula is the oldest respondent. She is sixty-four years old and is involved in selling roots and
tubers from her farm. She did not go to school and blames the lack of education as a cause
for her poverty and lack of confidence. She moved to Mlandizi, a nearby village, when she
was little. Her parents had emigrated from southern Tanzania. Ibula had lived all her life in
Mlandizi. She had three siblings but her husband and some of her children died and she is

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now the only bread-winner in the family. She likes doing her business at Ruvu Darajani
because there is less competition.

Ibula comes from Mlandizi using the shuttle minibus. Once she arrives at Ruvu Darajani she
greets people around the market area. She arranges bundles of cassava and sweet potatoes.
She usually gives a bonus of a small piece of cassava or sweet potatoes to her customers. She
is a jolly woman and she walks barefoot when she is around the market. When asked if she
prefers her photo taken, she happily agreed and then asked for a copy. When assured that she
will get a copy of the photo, she asked to go and get her sandals and another photo was
taken. Ibula sells all her commodities and stays for a while, having her lunch at the food
stalls. If anything is unsold, she keeps it in the nearby houses and sells it the following day.
Photograph 6.8 shows Ibula with the researcher while her produce is displayed on the
ground.

Photograph 6.8 Ibula with the researcher

Source: Researcher’s photograph

6.3.12 Mariam owns a shop with her husband

Mariam was thirty-nine years old at the time of research. She was the only respondent who
operated a small shop, in partnership with her husband, on the left side of the road. She sells
everyday household items. She explains that when she started the shop four years ago, it only
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had a few items, compared to her current stock, such that her customers don’t need to go to
other shops to get their everyday requirements. Her husband does all the shopping for the
shop.

Mariam’s father was a fisherman and her mother a paddy farmer. She has two siblings who
are married and doing well. Mariam describes life back home as normal; they are not very
rich or very poor. Her family sometimes helps her financially, especially when she is not
feeling well. She does not come to the market area everyday as sometimes she is not well.
Whenever she comes to the market to attend to the shop she is accompanied by her five years
old son. She attends to her customers and when the shop is not busy she cooks breakfast and
lunch at the back of the shop. Sometimes she even starts evening meal preparations when
still at the shop. Her older children come to the shop for their afternoon meal, which they eat
at the back of the shop.

Mariam always had herself covered except for her face hands and feet. This is a typical
practice for a Muslim woman. Although Mariam is sometimes unwell, she is cheerful and
very polite, a characteristic that is claimed to attract customers to her shop. Photograph 6.9
shows Mariam in front of her shop.

Photograph 6.9 Mariam in front of her shop

Source: Researcher’s photograph

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6.3.13 Elinuru who was a cashier and now a maize whole seller

Elinuru who was forty seven years old at the time of research, is the only respondent who
went through primary school, finished secondary school and trained as an assistant
accountant. She was employed by the then RTC, the regional trading company, as a cashier.
Elinuru is married with one child. She describes her background as having a good life and a
happy childhood. She gets along well with her brothers, who are both farmers. When she
was made redundant, she decided to start a business. She tried a number of businesses but
they did not go well. She then tried selling dried maize wholesale and she thinks it is doing
well.

Elinuru is the leader of the dried maize section. She arrives a little bit later after a few other
traders are already at the market. She wears a dress, a wrap, a piece of kitenge around the
waist, a heavy jumper, trainers and a head scarf. Elinuru speaks to other traders in her Meru
vernacular. She also speaks Swahili fluently. Whenever a foreign customer, that is, a person
who is not a Meru in that sense, she switches to fluent Swahili. Most traders can
communicate well in both languages, but with a Meru accent. Elinuru also serves as a
member of the local government committee. She is consulted on a number of issues and
sometimes she leaves her business and goes to the ward offices for a consultation or a
meeting, or when there are visitors. Elinuru operates six days a week.

6.3.14 Fausta a widow who sells small grains

Fausta was thirty seven years old, a widow with two children from Patandi village. She
completed primary school, and, like many women, stayed at home until she got married. She
moved to the study area when she got married. She recalls life as being hard at home so she
had to start a business when she was very young. She used to sell buns at home when she
was still in primary school. When she got married she continued doing the same business.
She explains how she took loans to support her husband and continue with business. Fausta
explains when her husband fell ill, she went through a hard time looking after her children
and repaying the loan and when her husband died she went through an even more difficult
period. She then decided to change business; she started selling small grains such as millet
and sorghum and she is the leader of that section. Fausta says she has already repaid her first
loan and took another loan to expand her business, and she thinks this was a good
opportunity.

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Fausta operates only on market days and uses the other days to prepare finger millet and
attend to other family responsibilities. The preparation process of millet involves taking the
grains to the river to be washed and dried. The millet is then re-packed in sacks and
transported to the market ready for selling. Fausta sells the millet in different measures
ranging from a quarter a kilogram to twenty kilogram capacity containers. Fausta
communicates with the customers and others in both Meru and Swahili languages.

6.3.15 Apaikunda the entrepreneur who sells breakfast at Tengeru market

Apaikunda: a disabled female entrepreneur was forty-five years old at the time of research.
She is married with children and grandchildren. She used to be a full-time housewife, and a
farmer. Then she had an accident which left her unable to carry out farming activities. She
describes her childhood as very hard because her parents were poor and brothers and sisters
did not help each other, as they were all in the same situation. She used to work at the family
farm. After the accident she decided to look for something which would sustain her life and
that of her family. She decided to start a cooked food stall at the market.

Apaikunda is the first trader to arrive at the market. At this time, only security guards, lorry
drivers and their assistants are around the market. Apaikunda operates a business of selling
tea and buns in the cooked food section. She usually has a heavy basket on her head, while
other things are carried in a hired cart. Once she is at her premises, she empties her basket
and contents in the cart. She then arranges her utensils, which include tea cups and plates.
She prepares the tea and buns at home. She starts a small fire to keep herself warm. After a
while, customers start to appear for a cup of tea and a bun.

6.3.16 Aishi the youngest respondents at Tengeru market

Aishi is the youngest respondent at Patandi village market and was twenty-one years at the
time of research. She used to live at home with her parents and says life was not bad then.
She qualified to go to secondary school but got pregnant before joining the school and that’s
when things changed. She was chased away from home and went to live with her aunt. She
did not get any help from her brothers and sisters because she was a disgrace to the family by
getting pregnant out of wedlock. She later got a boyfriend who gave her starting capital for
her business. She started selling dried fish outside the market, but later changed to selling
green bananas.

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She usually comes in a hired pickup full of different local varieties of green bananas. These
are grouped in different categories, namely; those for making local brew, mbege; for cooking
(plantain) and those to be used as fruits (ripe bananas). Aishi sells her bananas wholesale to
the buyers, who later transport them to other parts of the country, such as Dar es Salaam.
Aishi usually wears a dress with a wrap around the waist, and she sometimes wears a jacket,
jumper or cardigan, and a head scarf. Aishi normally leaves the market around lunch time.

6.3.17 Luyana a widow who sells vegetables

Luyana was a thirty-seven years old widow at the time of research. She sells vegetables. She
says her childhood was not easy and she did not get an opportunity to go to secondary
school, so she stayed at home doing farm work until she got married. She explains that some
of her brothers and sisters were able to get more education or married to well-off husbands.
She thinks their lives are better than hers. She says occasionally she asks for financial
assistance because her husband was from a very poor family, so life is not easy for her. Her
husband died and left her with three children to take care of. She also farms and has a
contract for cleaning the market, which gives her additional income.

Luyana sells different types of vegetables such as tomatoes, onions, spinach, Chinese
cabbage or cowpeas leaves depending on the season. Sometimes she sells carrots, peppers,
peas and cucumbers. She gets vegetables from farmers and from the main market in Arusha.
She is seen to be very polite and that attracts a lot of customers. Due to her other
commitments, she operates only twice a week and uses the rest of the week to do her
cleaning job, to attend her family and her farm where she grows bananas for family food and
coffee as a cash crop.

Based on the within case description it is possible to consider the summary of the key
similarities and differences in the three settings. This section described the poor rural female
entrepreneurs and their typical days. Table 6.1 illustrates the comparison of the three settings
in terms of markets, customers, type of business and time spent on each setting.

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Table 6.2: Comparative case summary

Kongowe Ruvu Darajani Tengeru

Location 20 meters from the along the main trunk just off the main
main trunk road road trunk road

Market structures small locally made small locally made Modern secure
stalls stalls constructed stalls

Primary customers mainly locals mainly locals across whole district

Secondary customers travellers travellers customers from

Arusha and other
parts of the country
Businesses studied cooked food fish mongering, cooked food
vendors, vegetables, cooked food vendors, dried maize,
charcoal and items of vendors, vegetables, small grains, green
clothing sellers tailoring, barbecue bananas and
stalls, small shop and vegetables sellers
local brew sellers

Number of 10 female micro- 10 female micro- 10 female micro-

respondents entrepreneurs entrepreneurs entrepreneurs

External respondents Local government Local government Local government

officials officials officials

Time spent at 3 days a week for 24 3 days a week for 24 3 days a week for 24
location weeks weeks weeks

Observation Prolonged and Prolonged and Prolonged and

repetitive repetitive repetitive

Secondary data Village records and Village records and Village records and
reports reports reports

Source: Author

The following table presented the summary of the profiles of rural female entrepreneurs,
their background, what made them choose to start a business, how much money they used as
start up capital and whether the premise they used were their own or rented.

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Table 6.3 Business Start up and Motivation

HOW
NAME BUSINESS STARTING MOTIVATION IDEAS WHY THIS BUSINESS CAPITAL PREMISE
MUCH
KONGOWE
5,000
Mwajuma Ramadhani Genge 2005 Survival Own Less movement 2,000 Rented

Rukia Mohamed Rice buns 2000 Children Neighbor Easy to learn 5,000 Free
None
Neema Saidi Multiple 1987 Poverty Grandmother Meet daily needs Ingredients Own
None
Tomatoes
Tina Emmanuel 2006 Better life Relative The easiest 1,500 Free None
/onions
Cooked
Mwajuma Ally 2006 Life problem Friend Flexibility 10,000 Rented 3,000
food
Asha Kimange Vegetables 2005 Help mother Own Part time 2,000 Rented
2,000
Cooked
Mary Kamanda 2000 Survival Own Survival 50,000 Rented 7,000
food
Aikaeli Macha Porridge 2005 Change Own Experienced 10,000 Streets
None
Grace Mshana Salon 2004 Family Support Own Experienced 300,000 Rented
5,000
Fish None
Mwanahamisi Iddi 2003 Survival Own Survival 50,000 Road side
mongering
RUVU DARAJANI
Eva Timothoe Local brew 1986 Better life Friend Flexibility 1,000 Own

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 HOW
NAME BUSINESS STARTING MOTIVATION IDEAS WHY THIS BUSINESS CAPITAL PREMISE
MUCH
None
Rehema Said Genge 2006 Family Support Husband Flexibility N/A Family
None
Sofia Thomas Tailoring 2001 Life ambition Own Meet daily needs 60,000 Family
None
Cooked
Sofia Sefu 1998 Family Support Own Experienced 3,000 Rented 4,000
food
Fresh
Ibula Abdallah Kihuja 1985 Survival Own Own farm None Road side None
tubers
None
Mariam Ramadhani Small shop 2003 Family Support Husband Flexibility 100,000 Own
Fish
Zamda Shamte 2006 Survival Sister's Less competition 20,000 Rented 2,000
mongering
Asinate Daudi Goat meat 2004 Family Support Boyfriend New business 100,000 Road side
None
Fried
Zawadi Ally 2006 Self sufficiency Own Low capital invest 20,000 Pavements 200/d
cassava
Fish Fish
Asha Hassani 2000 Bare Survival Own Sympathy 10,000 None
mongering market
PATANDI
Agr.
Asinati Pallangyo Dry maize 1993 Family Support Mother More profit 35,000 800/d
Market
Agr.
Raheli Somi Dry beans 1974 Family Support Own More profit 20,000 800/d
Market
Fausta Emmanuel Millets 1996 Family Support Own More profit 5,000 Agr. 800/d

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 HOW
NAME BUSINESS STARTING MOTIVATION IDEAS WHY THIS BUSINESS CAPITAL PREMISE
MUCH
Market
Tea and Agr.
Apaikunda Max Akyoo 2003 Family Support Own Physical ability 20,000 300/d
burns Market
Agr.
Lillian Mushi Dry beans 1981 Life needs Own Friend support 50,000 800/d
Market
Cooked Agr.
Zairati Yusufu 1995 Family Support Own Experienced Revolving 300/d
food Market
Agr.
Luyana Elia sikawa Vegetables 1990 Family Support Own Low capital invest 10,000 300/d
Market
Green Agr.
Aishi Kitomari 2005 Child support Own More profit 50,000 300/d
banana Market
Agric
Asanjo Kaaya Fruits 1999 Family Support Own Low capital invest 20,000 300/d
Market
Agric
Elinuru Gadi Dry maize 1991 Self sufficiency Own More profit 300,000 300/d
Market

Source: Research Data

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The following section will describe the entrepreneurial process for rural poor women basing
on the sustainable livelihood framework.

6.4 The Sustainable livelihood framework

This section describes the entrepreneurship process in relation to the livelihood framework
as a broad overview of their circumstances. The respondents described the impact of the
entrepreneurial environment, availability and access to assets and the level of vulnerability
on their livelihood.

Lack of government support is said to affect the lives of poor women living in rural areas.
The respondents explain that if they have better support services, in terms of business
training for the less-educated majority, it would have impacted on the way they undertake
their entrepreneurial activities. Also they point out that the MFI’s disbursing loans to be
closely scrutinized before and after to establish people’s needs and the business
development.

Respondents from Pwani show concern for the slow rate of economic development in their
area, and think the government can campaign and implement policies to improve the
situation. They mention the lack of banks which give loans to poor rural female
entrepreneurs, lack of business support, lack of commitment from politicians, inadequate
premises, conflicts and lack of support from MFI staff. They feel that they have been let
down and left on their own without support.

Most respondents show concern about culture and traditions. Respondents from Arusha
region are faced with the excessive drinking of their spouses. They also explain how they can
not do anything about it, like divorcing their irresponsible husbands, because in their
religious faith, marriage was for life. Also restrictive customs and traditions on land and
property ownership are pointed out. They explain that a female child in the family is entitled
to no, or very small, land portions and, even when married, the land belongs to the head of
the family, who is the husband.

In Pwani, women are also prohibited from fishing in deep water as this is believed to bring
bad luck and fish will disappear from the river. Respondents from Kongowe and Ruvu
Darajani markets express a belief in witchcraft which affects their lives. They believe that if

115
anybody is doing good business, will be bewitched and lose all the money without knowing
through chuma ulete, which simply means “earn and bring it”. Others believe that once you
are successful you will be bewitched and die.

Most respondents state that lack of business experience and training has hindered their
performance. For example, Neema, who is doing relatively well in her business, relates that
entrepreneurs in rural areas have been left without any guidance. They conduct their business
by trial and error and she compares the situation to orphans who have been left to look after
themselves.

Also respondents explain the in access to finance as one of the main barriers in starting and
running a business in rural areas. They also mention lack of financing as one of the main
constraints. Respondents also show concern about the MFI’s operating in their areas saying
that they are only interested in the repayments and profit. They don’t have permanent offices
which can be used to provide support services to loan recipients.

Respondents, who had taken loans from MFIs, explain how difficult it is for them to keep up
with the weekly or fortnightly repayment schedule. Three respondents say they have no
knowledge of where they can get loans or have never heard anything about loans.

In terms of operating conditions, poor rural female entrepreneurs who are able to pay daily
rent operate their businesses in stalls inside the markets and those who cannot afford to pay
the rent of a stall, use a pavement space which is rented for half the price of a stall. They
place items on the ground or on an old sack or mat. Photograph 6.10 shows a female
entrepreneur trading on the pavement of another stall.

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Photograph 6.10 A female entrepreneur trading on the pavement

Source: Researcher’s photograph

Lack of self-discipline in business is also mentioned as a constraint to good entrepreneurial

performance. They say there are periods when they used all their savings and capital, and
that they needed to start looking for another source of capital when they resumed operating
their enterprises. Other respondents just believe that they are not born to be successful
entrepreneurs, no matter what they do. Also some respondents feel the burden as too much
when their husbands are drinking a lot, or not making any effort towards lifting family life.

When the respondents are asked what to do to improve their livelihoods, they say any
circumstance presenting the opportunity to start a business is the only means of earning
money to make a living. Most of the respondents interviewed express the need to support
families through income-generating activities as the main motivation. Some say motivation
is survival, improving their standard of living, a few respondents say their motivation is
fulfilling a life-long ambition to be an entrepreneur and be independent. When asked about
their accomplishments, all respondents reply positively that they have accomplished a lot in
life as a result of being engaged in entrepreneurial activities.

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6.5 Conclusion

This chapter presented descriptive findings of the study as a result of field observation, face-
to-face interviews and conversations which took place in the three village markets. It
explained the setting, activities, type of businesses, the main respondents and events. The
description aimed at trying to portray a holistic picture of what was going on in the study
sites. The chapter also described the frame work on which the analysis and interpretation of
the research data will base.

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 CHAPTER SEVEN

ANALYSIS AND DISCUSSION

7.0 Introduction

At this stage, it is appropriate to re introduce the research question: How socio cultural
factors have impacted on the way poor rural female entrepreneurs undertake their
entrepreneurial activities in rural village markets. As stated earlier, this study was undertaken
using qualitative methodology, which has enabled the researcher to develop a framework for
identifying social and cultural factors in a contemporary social setting. The study used
inductive methods in a socio cultural context.

In undertaking this study, multiple approaches and data sources were used to triangulate the
findings and deepen understanding of social and cultural parameters in three settings. In the
following sections, the findings from this study are analysed and discussed in relation to the
guiding research questions. This chapter is divided into three main sections which explain
how sustainable rural livelihood framework was used in analysing the data. The sections
present the analysis of data by using the five sustainable livelihood components which were
discussed in 4.3.

The sustainable rural livelihood framework analyses the data obtained by looking at different
components of the framework and how they relate to each other. The framework has placed
the rural female entrepreneurs at the centre of the livelihood assets component in order to
show how different asset capital impacts on how these female entrepreneurs undertake their
activities. The analysis also looks at how the other components have contributed or resulted
into how the female entrepreneurs from different socio cultural backgrounds undertake their
activities. The decision to use this framework is also influenced by its greater explanatory
power as opposed to western models. It provides a better way of managing complex issues
which arose during the analysis. The framework is modified to suit the context under which
the study was undertaken as well as the circumstances and priorities of the respondents.
From the five components of the sustainable livelihood model, the researcher has developed

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a sequential description of how these livelihood components impact female entrepreneurship
process in rural context.

7.1 Enabling environment for rural female entrepreneurs

In a classical sustainable livelihood theory the researcher would have been expected to start
analysing the vulnerability context first. However, in this study, the findings suggest that the
enabling environment which constitutes the transforming structures and processes play a role
in the way rural female entrepreneurs undertake their activities. The enabling environment
determines how the poor rural women access important livelihood assets for their well being
and these include human capital; social capital; physical capital; financial capital; and natural
capital and the relationship between the two components.

According to DFID the enabling structures as far as the theory of sustainable livelihood is
concerned are referred to as the “hardware” of the livelihood framework where as the
processes as “software” of the framework. The structures in the livelihood theory are
classified into public and private sectors. In a classical model, structures that are identified in
the public sector include political or legislative bodies at various levels, executive agencies,
judicial bodies and parastatal or quasi- government agencies. On the other side structures in
private sector include commercial enterprises and corporations, civil societies and NGOs at
different levels (DFID, 2000).

In the study areas the available public enabling structures were the local government
authority at village/street and ward levels. Government agencies operating in the area were
TANROADS, TRA, police and primary courts. In case of private enabling structures there
were a few commercial enterprises operating in the areas. For example at Kongowe there
was a milling plant and a Fuel filling station, at Ruvu Darajani there was a Chinese
construction Company and in Patandi there was a tourist hotel and fuel filling station. There
were a number of civil society and nongovernmental organisations operating in the area with
varying degrees of formality. The number of these societies and organisations was higher in
Patandi. As a result the number of poor rural female entrepreneurs in these organisations was
also higher in Patandi.

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According to DFIDs Sustainable Livelihoods Guidance Sheets the transforming processes
found in traditional sustainable livelihood theory include macro and sectoral policies
relevant to that particular social group; legislation such as international and national
agreements and contracts; institutions such as markets and financial institutions which
regulate access to livelihood assets; culture of the social group in terms of societal norms;
traditions and beliefs and power relations in terms of gender, age, class and caste (DFID,
2000).

In the study areas it was found that although Tanzania has sound policies for female
entrepreneurship development, respondents were not aware of them. The respondents were
also not aware of the national and international agreements concerning them as women,
entrepreneurs and members of their society. In case of institutions supporting the
transforming processes such as markets and financial institutions, they were found to operate
in all the three areas. The markets were different in terms of the organisation, permanency,
type of customers they serve, and the type of business they operate.

In case of financial institutions like banks; it was found that in Kongowe and Ruvu Darajani,
respondents had to go longer distances in search of bank services. In Patandi there is an
Automated Teller Machine (ATM). Culturally, it was found that there was a significant
difference in terms of societal norms and beliefs between Pwani and Arusha. Findings on the
power relations among different social groups showed that one’s position in the society was
dictated by the number and size of possessions and entrepreneurial achievements.

It can be argued that, when poor women have no access to organisations of the state, they
often have little knowledge of their rights. This is a particular problem in the remote rural
areas where the number of government and non government organisations operating in those
areas is limited. For example, in all cases of the study, respondents had little or no
knowledge of the existence of the national women entrepreneurship organization in Tanzania
or the Small and Medium Enterprises development policy. These findings suggest that the
government organisation is a top down kind of a structure, whereby information and policies
implementation starts from top downwards. Thus if at all there is a gap or a delay along the
way, rural population, especially women become the last group to be reached.
In most rural areas the government involvement is recognised at the local government level
where its operations are based on predefined interests. For example, someone can be allowed

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to carry out a business on a restricted premise provided she is paying to the local
government, but will stand alone when required to face the law.

The basic interest of the few institutions that operate in the rural areas is not entirely to
improve the lives of poor rural women but also to fulfil their predefined interests. Taking an
example from a credit giving MFI, one of the conditions is whoever is applying for a loan
needs to be in a group of not less than five members. Many people believe that the motive
behind this condition is not to encourage these women to work together as a team, but to
ensure the easiness of getting the members to pay the loans.

Cultural implications across the cases were very clear in terms of the level of education
attained by research participants. In Pwani region, most respondent’s education level ranged
from no education to secondary education, while in the highlands it ranged from primary to
secondary level. This may be explained by the fact that in Pwani region formal education
comes second to traditional or religious knowledge. For example, it not uncommon to see a
girl being pulled from school, to be secluded inside for months in order to undergo
traditional rites. To them, these practices are part and parcel of the socio cultural belonging.
However, the practices may do more harm than good for the society in terms of deprivation
and marginalization of the women in terms of lack of education and life experience. The
figure below shows the enabling environment components surrounding rural women
entrepreneurs.

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Figure 7.1 Components of Enabling Environment

Source: Research data

The enabling environment may have an impact on how and how much of the livelihood
assets can be accessed by rural women.

7.2 Livelihood assets

In this section an analysis of the livelihood assets is presented. Referring to the classical
livelihood framework, these assets are presented in a pentagon shape with the rural female
entrepreneurs at the centre. In order to be successful in entrepreneurship one has to posses all
of these assets in varying degrees. This sub sections analyses the five livelihood assets:

7.2.1 Human capital

In analysing the human capital of rural female entrepreneurs, one has to look for the
available entrepreneurship and business management skills, reliable and accessible source of
information for entrepreneurs, knowledge, and the ability to work, maintaining good health
that together enables entrepreneurs to undertake a number of livelihood strategies in order to
achieve sustainable livelihood objectives. In the study it was found that most respondents,
eighty percent have gone through primary education which equips them with the basic ability
to make use of any of the four types of assets to some extent. Respondents who have gone
through primary school were able to do many things including applying for loans because

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they could read and write. However, going through primary education did not warrant the
ability to do “many things”, entrepreneurship being one of them. Those who did not go
through primary school had limitations on how many things they could do for example
obtaining loans; although two respondents managed to get loans through friends. All
respondents thought that achieving a certain level of education would have made their lives
better. Sometimes they blamed their limited success in their entrepreneurship endeavors to
lack of education, although having a basic education on its own is not sufficient for the
achievements of positive livelihood outcome. Lack of education is a cultural outcome, but it
tends to marginalize the entrepreneurs. They feel poorly equipped to take advantage of
opportunities.

Very few respondents have formally acquired enterprise related skills and knowledge. Only
three respondents have been trained. This does not mean that all other respondents did not
know what they were doing. Most respondents had acquired knowledge and skills of
whatever they were doing by experience. They learned the skills from their parents or
guardians through doing and observing other entrepreneurs. The overall performance of the
entrepreneurs was not based on whether one has been formally trained or not. For example
Elinuru from Patandi had trained in accounts and she is doing well in her business of selling
dried maize wholesale. On the other hand Sophia Thomas trained in tailoring but she is
performing below village average ceteris paribus.

Although it can be argued that MFIs provide business training to women before granting the
loans, the fact is that many, who apply for loans, do so for non business purposes, such as
paying for school fees, building, and buying household assets. Thus, the significance of
training provided by the MFIs to poor rural women entrepreneurs becomes questionable, as
they explain themselves “we don’t concentrate on what they teach us, what we need is
money”. But for a few respondents who followed these trainings, they seemed to appreciate
their impacts on their businesses. For example Aikaeli from Kongowe explained how the
training she got from MFI has helped her to run her business and even to open a bank
account. Having a bank account was observed to be rare in all settings. From the researcher’s
point of view, these situations seemed to be influenced by prevailing enabling environments
in which these women entrepreneurs operate and live, such as information on markets,
products and policies.

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The most common sources of information were similar with minor variations. Most
respondents said their sources of information were word of mouth which was commonly
used to transfer knowledge from one entrepreneur to another. Information from the operating
MFIs was another source of information as far as loans were concerned through local
government offices. The local government was also used as guarantors of loans as well as
dealing with conflict resolutions. Market leadership in case of Kongowe and Patandi was
also an important source of information. In Patandi there were NGOs dealing with women in
general but some of the respondents were also members and they could get information on a
wide range of issues. There were networks which also provided information to its members.
The use of mobile phones was also explained as one way of obtaining information from
farmers and other traders.

The type of networks in the Kongowe market were upatu, trade organizations such as those
operated by the women who run cooked food business had their local organization, and
market committee. Other forms of networking existed, but these were the ones with which
the respondents most identified because are commonly used by all respondents. At Ruvu
Darajani the respondents had a network of lending groups which were also used for other
activities like obtaining other loans, women helping each other, political activities and
traditional celebrations. However, this process of networking was not uniform, for example
the women who operated one side of the road had a strong informal network and they would
communicate more than those from the other side of the road. In Patandi the respondents had
a network which was related to the category of their business. Those selling dried maize had
their own organization and those doing cooked food business had their organization. They
helped each other in case of sickness or death, and they also acquire loans in the same
groups.

Respondents who were not involved in taking loans or those who did not network with
others seemed likely to miss the opportunities to acquire important information on their
businesses or any other important information. Also those who do not spend much time in
the market are likely to be left out in acquiring information like availability of loans, creating
lending groups, prices and changes in produce seasonality. This sharing of information does
not say, for example, whether if one individual or a group gets information on lower buying
prices or better products will share the information with the rest of the group.

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Another issue to be analysed as far as human capital is concerned is the presence of local
technologies which are found locally or have been imported from nearby regions. In
Kongowe, Aikaeli runs a cooked porridge business which is customarily found only in the
highlands. The people of Kongowe have adapted to taking finger millet porridge and it is
making good business. Asnati at Ruvu Darajani started a roast goat (barbeque) business
which is popular in Maasai land and the highlands. Customers at Ruvu Darajani have
become used to roasted goat meat. At Patandi the respondents who are involved in selling
small grains have a local technology of cleaning the millets at the riverside and drying it
there. This shows that there are local innovations which help respondents in their business
undertakings.

Lastly the study wanted to know if respondents were aware of the policies, regulations and
legislation supporting them. Most respondents did not understand what were rights were and
what functions and roles of the government and the private sector were as far as female
entrepreneurs are concerned. Respondents such as Mary, Mwajuma, Eva and Asnati said that
female entrepreneurs are like orphans. Nobody is interested in their wellbeing.

7.2.2 Natural Capital

In terms of natural capital, all three settings had natural resources. The resources found in
these villages were very useful for people’s livelihoods. Female entrepreneurs who were
examined are part and parcel of the natural stock found in their societies. In this study we
look into how these natural resources have impacted on the respondent’s livelihoods.

In terms of natural resources found in Kongowe there is ample land which is used for crop
and livestock farming. In this village women have informal access to land for the purpose of
production. When it comes to land rights these women have no formal right guaranteed by
any local or civil rights and in particular when they are widows. Rukia is a widow, she had
land with her husband but when he died his relatives sold the land without consulting Rukia
and gave her 300,000/= which was equivalent to £150 in 2007. She was left with her
children with no land. Most peasants, in particular women, practice seasonal farming. They
depend on rainfall which comes twice a year. There is no irrigation and sometimes the
climate is not very conducive. The land is a main source of respondent’s food: during the
farming season the respondent’s activities are divided between the farm and the market.

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Usually they farm in the morning or in the evening. Others hire labourers to cultivate the
land and involve themselves with sowing and leave weeding to the labourers. Usually
fertilizers, pesticides or other chemicals are not used.

At Ruvu Darajani, there is ample land with a river which is a source of drinking water and
for irrigation for Kibaha and Dar es Salaam. Most of Ruvu Darajani area is swampy, such
that it can support crop growth during dry and wet seasons. The river is also used for fishing
activities. According to customs and traditions women are not allowed to fish in the river.
They can only be allowed to remain just on the banks of the river to catch wandering fish for
home consumption, a practice that denies women the right to utilize fully this resource.

At Patandi there is limited arable land in general terms. The available land is fertile and
supports both food and cash crops. Women can work on the farm but there are not legally
owners of the land. Female members of the family do not inherit land from their fathers.
Patandi is endowed with water sources as there is a river and a number of streams that are
used for irrigation and household uses.

The argument here is that even if these areas are endowed with a lot of natural resources,
their accessibility and utilization by women is very limited. These women are being
marginalized by their own societies in such a way that they do not have any power when it
comes to deciding on how these resources should be utilized. Hence these poor women
become vulnerable to all sorts of discrimination, abuses and the like when they attempt to
seek a fair share from these natural resources.

Productivity of the natural resources is declining because of many reasons that include
climate change and deforestation. Overfishing is also practiced, with frequent use of small
sized fishing nets. There are natural problems like floods, drought and strong winds which
destroy some natural resources in these areas. When these catastrophes strike, it is the rural
poor women who suffer the most.

7.2.3 Physical Capital

Physical capital in this study encompasses all infrastructures which are used for marketing
activities in the village markets. These influence the way in which these women carry out

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their business activities. This study tries to find out whether the available infrastructures
meet the basic requirements to promote entrepreneurial activities in the rural areas and how
they sustain livelihoods.

Accessibility of the three markets can be said to be good as the market areas are only a few
meters from the main trunk road, although ability to access market facility differs across
cases. The access to stalls at Kongowe market is mainly for clients who are able to pay, those
with less money are allowed to rent the pavement or otherwise operate outside the market all
together. A good example, as discussed earlier, is Mwajuma who used to rent a stall and
when things did not go well, she had to rent a pavement of the same stall at half the price.
Later on when her business got better Mwajuma had an opportunity to rent another stall once
more. The poorest entrepreneurs have less access to the infrastructure and the access of the
market is quite informal. At Ruvu Darajani the access to the market structure is totally non
formal as anyone can easily enter and exit freely. With poor market infrastructures, I can
argue that women, especially who operated outside of what is called the market, are
vulnerable to all sorts of hardships such as bad weather, sun, dust, noises and generally
difficult working conditions. At Patandi a more formal market exists where as noted earlier
the female entrepreneurs have access to a number of services.

7.2.4 Financial capital

The financial capital considered in this study is the availability of financial resources that
rural female entrepreneurs use to achieve their livelihood objectives. The financial capital for
these poor women comes from savings, regular inflows or from family and friends and loans
from Micro finance institutions.

In Kongowe and Ruvu Darajani villages the respondents had no formal source of finance
like banks. Most of the respondents acquired their startup capital from family and friends,
from upatu and some had savings from previous businesses. For example Neema started her
current business from savings from another business and Grace got her capital from her
husband who borrowed the same from a Savings and Credit Cooperative Society at his work.
Almost all respondents were involved in upatu, as a common way of raising capital. It
appears that the absence of formal financial sources may have a negative impact on the way
these poor rural women entrepreneurs operate. Most consider that a secure source of
financial capital would improve their entrepreneurial activities.

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At Patandi there is no formal banks; except an ATM as said earlier. There are about six MFIs
operating in the areas and private individuals who give loans but at an interest rate higher
than that of the MFIs. Two respondents from Patandi had bank accounts and they also had
loans from MFIs. For example, Fausta is hoping to grow her business so that she will be able
to take a bank loan. Elinuru has a bank account and is also taking a loan from the bank.
However, the presence of the formal banks and MFIs in Patandi does not discount the
importance of upatu and family and /or friends as the source of the startup capital, but seems
to broaden the capital source base, so increasing the chances for rural women entrepreneurs
in the highland of getting reasonable financial capital to run and develop their
entrepreneurial activities.

Other things being constant, any woman who is a member of the social group and who is
involved in entrepreneurial activities, can access financial capital from different sources so
long as she is also trustworthy. However, some women may be denied access to financial
capital; this may be due to lack of information, lack of good public relations and lack of any
collateral. These women may not be deemed trustworthy.

The absence of the formal financial institutions, affects the way in which the respondents
save their profits. Most of them indicated to save in terms of cash hiding under the bed or
somewhere else and by building domestic assets. Across all cases, only four respondents
indicated that they saved in the bank. All of the respondents had at least some idea on the
benefits and risks of the way in which they serve their capital. For example those who kept
their money at home were aware that it could be stolen, destroyed by fire or vermin. Those
who bought livestock were aware that animals might die or stolen or some assets may not be
easily liquidated to their real values. If at all this happens, it is obvious that the intended
outcomes for those particular poor rural female entrepreneurs would not be realized.

7.2.5 Social capital

The survival and performance of rural female entrepreneurs is mainly based on trust. This
trust is only among the businesses but not among individuals. This means that it is common
to see a female entrepreneur taking commodities from another entrepreneur on credit
promising only verbally to pay later, but very uncommon to see poor rural female
entrepreneur trusting a relative or someone else to run her business without some form of a

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binding document. A good example is Rehema from Ruvu Darajani who says she does not
trust anybody to look after her business.

The lack of personal trust has a negative impact on business development and employment
opportunities, as most poor rural female entrepreneurs are very reluctant to employ others in
their business for fear of being stolen from. For those who had to employ workers, it was
revealed that a constant supervision was needed to ensure the survival of the business. To
my view this acts as the barrier to business growth. The shape of the pentagon depends on
how much of the assets are accessed by the poor rural female entrepreneurs. In this study it
was found that among the livelihood assets, access to physical, financial and natural assets
was most limiting, resulting into a skewed pentagon. Table 7.2 shows the access to
livelihood assets by the poor rural female entrepreneurs as illustrated by the shape of the
pentagon.

Figure 7.2 The asset pentagon as affected by the enabling environment

Key:
H = Human capital
S = Social capital
P = Physical capital
F = Financial capital
N = Natural capital

Source: Author

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7.3 Vulnerability context

In analysing vulnerability context it is important to look at the type of businesses the poor
rural female entrepreneurs own and manage depending on their settings and the livelihood
assets they posses. These seem to dictate the level of vulnerability, the strategy adopted and
the outcomes anticipated. The female entrepreneurs in all three settings were mainly
involved in food related businesses. Twenty-eight respondents were found to operate food
related businesses, where thirteen operated cooked food business; of those, eleven
respondents were from coastal area. The other food related businesses include selling of raw
vegetables, grains and tubers. Two respondents were found to operate non food businesses of
a hairdressing salon and tailoring. This suggests that the respondent’s prior domestic
experience in preparing food influenced their choice of business. For example, because all
respondents were female, most of them mothers, it is expected that they are well placed to
operate food related businesses. They may lack entrepreneurship skills but they are well
versed as far as food is concerned. As poor families are likely to be vulnerable to hunger, the
cooked food business may seem to be the most appropriate choice as it is one way of
assuring families gets their daily meal from the income or the food from the stalls. It was
revealed that for those involved in cooked food business their immediate families benefit
from the food either by eating the food on premise or when some food is left it is usually
consumed by members of the family.

As the women carry almost all household responsibilities, the revenue from the businesses
owned by the respondents was controlled by the female entrepreneurs themselves. This
allowed them choices: their choice not that of their husbands, fathers or brothers. Given that
the women are ultimately responsible for family welfare this possibility of choosing for
themselves must have welfare effects.

For the few respondents who were involved in farming they used large output for home
consumption and business. A good example is Ibula from Ruvu Darajani who sells cassava
and sweet potatoes from her own farm. She did not have to sell the produce to a middleman
but was able to derive the full retail price of the produce for herself. Therefore, it can be
argued that as women posses fewer assets, they become more vulnerable, so when
production, selling and consumption are integrated they have more control of their lives and
a beneficial effect on the welfare of the family for whom they are responsible.

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It could even be argued that being more in control of their destiny, as an enabler, is a critical
element of combining livelihood and entrepreneurial theory. It makes entrepreneurship a
much better fit for the developing world. Thus, a combination of livelihood theory and
entrepreneurship theory develops strong explanatory power to explain the life and practices
for this marginalized group of very poor women.

Prices for different commodities were almost the same in the same market as respondents
like other traders were afraid of losing customers if they charged a higher price. The prices
were determined by the availability of crop produce. Whenever crops were in abundance the
prices were usually low and vice versa. Other factors which affect the price are; the source of
produce; the more distant the source of produce, the higher the price. A good example is for
Tina who sells tomatoes. When tomatoes are brought from Ruvu Darajani they are less
expensive compared to those brought from Iringa region. For respondents who have little or
no competition have an advantage on the price, but other things are to be considered. For
example Sophia Thomas is the only tailor at Ruvu Darajani but the prices she is charging are
very reasonable and depend on the purchasing power of her customers. So although the
respondent’s prices are influenced by conventional factors such as competition, they also
have considerable discretion in what they offer and what they charge.

As most businesses are food related it is not easy to predict seasonal fluctuations as
agricultural output is not predictable in areas without irrigation. Agriculture seasonality has a
direct impact on the ability of respondents to buy more or less crop produce. A good
example is the Patandi market where most respondents deal with selling grains. Therefore, as
said earlier that production, selling and consumption are integrated, poor production will
directly affect selling and consumption.

The prices for farm produce like banana, vegetables, grains, fruits and tubers depend on the
availability and seasonality. Respondents selling the mentioned crop products are faced with
decisions on how much to buy depending on the available capital. On the other hand the
price of cooked foodstuffs remains unchanged with the exception of fish which is sold
depending on availability. What changes in foods like rice is the portion. Sophia Sefu from
Ruvu Darajani would offer bigger portion of rice when the price of uncooked rice is low. So,
clearly Sophia recognizes that her customers have a relatively fixed budget for food. So she

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accommodates fluctuating cost prices by adapting portion sizes. Again this is control and an
outcome or at least part of their entrepreneurial skills.

For respondents who were also engaged in some sort of farming, they use the output from
farming for home consumption. For female entrepreneurs from Patandi where they grow
banana, this crop contributes to the household food needs and also for selling in the market.
For Kongowe and Ruvu Darajani the food grown is used for home consumption and for
selling. In all cases selling of food does not mean that one is self sufficient but food is sold to
cater for other needs, including buying food later. In other words respondents from Patandi
buy less food compared to those from Kongowe and Ruvu Darajani. Therefore, it can be
argued that being in business has allowed them to overcome a typical but perennial problem
of hunger.

The studied female entrepreneurs mentioned the cash income to be the most limiting asset
throughout the year. It is critical when children go to school or college. This will be in
January and July for primary school pupils and ordinary level secondary school; April and
August for advanced level secondary school and September/October for Colleges.

With the prevalence of HIV and AIDS and other health problems cash money is needed
almost all the time. Respondents are faced with the task of taking care of their ailing relatives
and family and most of the time they spend all the profit, the capital and also are sometimes
left in debts. However, from the respondents’ point of view, spending all of the profit and
capital to fulfill the family responsibility is seen as an achievement. In this context, it can be
argued that fulfilling a family responsibility is more important to the entrepreneur regardless
of the damage caused to the business. Importantly, when the poor rural female entrepreneur,
the main earner, becomes sick, the survival of the business and the family welfare are on the
verge of collapse.

Illness, which is all too prevalent (AIDS, TB and Malaria) debilitates the respondents and
hence reduces their ability to work their business. But even when it is a family member who
is ill, because of responsibilities the ability to run the business suffers. Thus both daily
income and even capital is used to address the problem. This is a good example of
vulnerability as Amarataya Sen discusses. There is no buffer, the effect is immediate.

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There are other obligatory uses of cash money. For example in Kongowe where the tradition
of celebrations for girls and boys can only be during holidays that is usually a crucial time
for parents. A good example is Eva from Ruvu Darajani who says by having her business it
has enabled her to be able to fulfill the traditional obligations such as initiation rites and
traditional dances. In highlands where most respondents are Christians, Christmas and
religious rites such as baptism, Holy Communion and Confirmation are celebrations which
were identified to put a lot of pressure on parents.

Poor rural female entrepreneurs as part of the social groups in their communities have
limited access to appropriate financial services. At Kongowe and Ruvu Darajani there are no
formal financial institutions like banks, a different case in Patandi. However, as we say in
the descriptive analysis, for many, the problem is not the access to loans but rather the ability
to repay the loan. Most respondents (even those taking loans) are worried about repayment
and the consequences of not paying the loans. The bureaucracy and collateral requirement of
bank loans also is believed to limit respondent’s ability to access finance. There are some
respondents who cannot read or write and are almost excluded in the financial assistance.
About twenty seven respondents have no bank accounts so they do save in different ways
such as under the bed, upatu.

With starting of business most respondents have found themselves able to sustain their lives.
A good example is Tina who did not have anything but started her small business. Although
she had, quite literally nothing, her micro business has been able to sustain her. Indeed she is
very proud in how she has been able to replace her cardboard bed for a proper mattress.
Nonetheless those respondents who have less education and no training have fewer
opportunities in life and even in their businesses as far as their livelihoods are concerned.
Ibula who cannot read or write is limited to other opportunities. She could not even
contemplate asking for a loan because she cannot read or write. The economic wellbeing of
the society had an impact on the opportunities. In Patandi where the weather is good and
many crops can be grown more frequently as there are more opportunities. Also the presence
of role models may have an effect on the respondents in Patandi and it is more likely that
many women are involved in entrepreneurship activities where the village market
accommodates around 3500 entrepreneurs every market day. The figure below shows some
of the components in the vulnerability context that mostly affect rural poor women
entrepreneurs as dictated by the enabling environment and livelihood assets. Figure 7.2

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shows the relationship between the enabling environment, the poor rural female
entrepreneur’s assets and the level of vulnerability.

Figure 7.3: The relationship between the enabling environment, assets and level

of vulnerability

Source: Researcher data

7.4 Livelihood strategies and outcomes

When analyzing what poor people do to improve on their livelihoods, one should not have
any preconceived ideas of what they do and what their expectations are. Many of the
assumptions made about the poor have never been properly tested. For example, there are
assumptions that poor people live in rural areas and their main occupation is agriculture.
Therefore, supporting agriculture may seem most appropriate in the rural areas without
considering that agriculture is not the only occupation in the rural areas. From this study, it
was revealed that due to the gradual decline in agricultural production in the rural areas;

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agriculture is now carried out to supplement income from other sources in order to sustain
people’s livelihood. In line with this argument, rural poor women adopted petty trading as
the strategy to improve on their livelihood and get out of abject poverty.

However, in undertaking this study it was not very clear to know the contribution of
household income from agriculture and from business. Even the respondents themselves did
not know because they put income from all sources together. There were no proper records
of household consumption as respondents were interested in making sure their family got
meals and other needs. Importantly, what seems to matter for the rural poor women is to get
on with living and working as it is not easy to distinguish between work and life time.

Moreover, in the coast, the poor rural female entrepreneurs needed to spend more time at the
market place, while in the highlands they needed less time. The reason for this may be
explained by the fact that in the coast the market place is considered to be one of the
socialising places so women will prefer to stay there even if they are making no
money/profit. The opposite is true in the highlands where women prefer to spend as less as
possible time at the market place so that they can utilise the rest of the available time in
doing other economic activities. Therefore, one can conclude that in terms of productivity,
time is more usefully spent in the highlands than in the coast.

There have been changes also in the roles played by different social groups in the society.
For example, it has been shown that girls, who helped their mothers in business and other
household chores, have themselves become female entrepreneurs. This may serve as a role
model and instrumental example for the future entrepreneurs.

Most of the respondents, if not all, showed investing in their children’s education as the
strategy for improving family’s future livelihood. The motive behind this is that when the
children get better education and they will have a good job and will do better business that in
turn will help their parents. Other respondents showed their happiness for their immediate
investment in terms of fixed assets such as plots, houses and farms, household assets such as
television sets, mobile phones, kitchen utensils, bed and mattresses and working assets such
as a pub, livestock and guest houses. Therefore, having their own business has improved the
choices available to the respondents. Moreover, there is some social and economic
accomplishment to some female entrepreneurs for such things like freedom to pay rent,

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supporting families, and starting a new business. In many ways they have become liberated,
but paradoxically at the cost of being constrained to work in the business.

The study showed that women entrepreneurs move from one place to another to take
advantage of income earning opportunities on their own initiatives or decisions. Those who
do that are either unmarried or divorced. That is where the customs and traditions come in,
as husbands have to make final decisions for women even if the move is beneficial to the
family; a woman cannot make final decisions. Also family pressures, like looking after
children, restrict most entrepreneurs to take advantages of income earning opportunities
away from homes. The freedom, the emancipation described above, is also constrained by
their social circumstances. Only those without family are able to move around. Indeed the
loss of family may even force them to move in search of a living.

When analysing livelihood strategies for poor rural female entrepreneurs it may be necessary
to acknowledge people, in particular poor people who compete for scarce opportunities for
employment, productivity, markets and better produce prices, thus making possible for
everyone to simultaneously achieve the same level of livelihood objectives or outcomes as
the poor people are not homogenous and are less competitive.

In this study, some entrepreneurs revealed that they have attained some of their livelihood
objectives, even though their sustainability cannot be guaranteed. For example, they
mentioned increased levels of self confidence, self-esteem, political representation and social
inclusion, or increased income, all as a result of being entrepreneur. Others managed to take
their children to school, provide food for their families, support relatives and secured
appropriate shelter.

Generally, it can be deduced that for rural poor women, being an entrepreneur has resulted
into increased income, improved family wellbeing, reduced vulnerability and improved food
security. However, as the poor people are not homogenous their livelihood objectives are
also different. This implies that the researcher cannot identify or recommend any one
livelihood strategy as a preferred option to take people out of poverty. But only those
entrepreneurial strategies have made some things possible.

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Even though some good things have happened to poor rural female entrepreneurs because of
being enterprising, still there is a lot to do. Many women in the rural areas have little
knowledge about their rights, and underrepresented in decision making bodies. Some still
have traditional mind that women were born to be poor and serve the man’s empire. This
calls for deliberate efforts in addressing these issues. It should be borne in mind however,
that there are some trade-offs in addressing these issues and livelihood objectives. While
others may be benefiting from one course of action, others may suffer as a result of such
actions. Thus, a balance needs to be sought in order to achieve sustainable livelihood
outcomes. The figure below presents the modified livelihood model for the studied rural
women entrepreneurs.

Figure 7.4: The livelihood framework for rural poor female entrepreneurs

Source: Research Data

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7.5 Conclusion

Therefore, generally speaking, the researcher can conclude that rural female micro
entrepreneurs undertake entrepreneurial activities in order to survive and not because they
want to be entrepreneurs. This chapter has looked into the five components within the
livelihood framework and their influence on the way rural female entrepreneurs go about
bringing sustainability in their livelihoods.

It was revealed that the enabling environment dictates the type, amount and quality of assets
possessed by the rural women entrepreneurs. It was also shown that poor women with few
or no assets are more vulnerable to much of the social and economic harassments. It is within
this vulnerability context where poor rural female entrepreneurs, choose the strategies in
order to achieve their livelihood outcomes.

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 CHAPTER EIGHT

CONCLUSIONS AND CONTRIBUTIONS OF THE STUDY

The meaning attached to business and therefore growth motivation of some women business operators
will change after a degree of success.

Rosa et al, 2006

8.0 Introduction

This final chapter presents the summary and conclusion of the research findings, the general
framework of the study, the practical and theoretical contributions of the study and
recomendations for future reserach. It brings together the researcher, the research sites and
the respondents. This chapter will propose a way of understanding the nature and processes
of the poor rural female entrepreneurs. Considering the nature of the research setting and
respondents the researcher used a combination of entreprenurship and livelihood theory in
enhancing understanding of the phenomenon under study.

8.1 Summary of the thesis

This section gives the summary of the chapters in the thesis. In Chapter One the reader was
introduced to the background of the study. It demonstrated the importance of undertaking
this study in a specific context. This was justified because it was shown that there are
differences in entrepreneurial performance between poor rural female entrepreneurs of the
same region or locations in the same country. These differences may be explained, in part, by
the different socio cultural background of the respondents and how it has shaped the way
they underatake entrepreneurial activities in that country or locational context. The context
for this study, the background information about the research settings was described in
Chapter Two. It described the historical, economical and political environment before and
after Tanzania’s independence. It also described the background of entrepreneurship and the
role played by poor female entrepreneurs in rural areas.The relevant literature was reviewed
in Chapter Three whereby the genesis of entrepreneurship and female entrepreneurship were
explored. Chapter Four presented the theoretical framework of the study. It introduced the
social construction of knowledge as the high level theory and later the sustainable livelihood
perspective was used as a middle range theory and a framework for analysing data.It
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presented the theories and concepts relevant to the phenomenon. A critique of adopting
western models of entrepreneurship and their application in developing countries was
developed. Chapter Five presented the methodology of the study. This study was conducted
using a qualitative methodology using an ethnographic appproach with the aim of studying
the activities of poor rural female entrepreneurs,the aim was to try and understand how they
strived to improve their livelihoods in that rural context. The study also looked on how socio
cultural factors impact on how the rural female entrepreneurs undertake their activities.

Chapter Six presented a descriptive account of the study, that is, how the data were
contextualized in the rural setting. The nature of rural female entrepreneurship and the
processes involved were described and presented. Chapter Seven analysed the data by using
the sustainable livelihood framework. Within case and cross case analysis was done by
looking at the five components of sustainable livelihood framework for the purpose of
enhancing understanding of the phenomenon under study. It aimed at establishing if there
were similarities or differences depending on the socio cultural attributes of the respondents.
Also the discussions on how the socio cultural factors have contributed to the way women
undertake their activities in improving their livelihoods were conducted. The Final Chapter
was devoted to summarizing the study, presenting the contributions of the study and the
conclusions of the five livelihood components. It also presented the implication for theory,
policy and practice and lastly it suggested areas for further research.

8.2 Research Contribution for theory

The main theoretical implication for this study is the suggestion of a new theory emerging
about the notion of “survivalist” entrepreneurship with a view to the future. From within the
perspective of a developing economy, western theories do not take sufficient account of the
context of poor Tanzania. Hence their explanatory power is limited. The survivalist theory of
entrepreneurship focuses, like Sarasvathy’s effectuation, on using the resources that they
have at hand. They are not primarily interested in growth, but simply on getting enough to
get by. They use what they have, time, effort, things they have grown or can buy or borrow
to add a little value by selling them. The added value is modest, but real, and importantly
provides a way out of the poverty trap. For example when a respondent buys a kilo of maize
flour and cooks stiff porridge and sells to customers. It can be seen that this opportunity
"effectuation" is determined not only by the limited resources ready to hand, but by the
context and by the sorts of values that can be realistically added. It is not simply necessity

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entrepreneurship, but a survivalist strategy that can also change life. This notion will
differentiate entrepreneurship as a mere activity of making ends meet but as a way of
improving one’s life. This implication may be used to analyse entrepreneurship in broader
categories depending on the context of the studied phenomenon.

Understanding entrepreneurship using this view has been presented throughout the study.
The society under study will shape on how people carry out entrepreneurial activities. The
socio cultural background of a particular society has a role to play on how people are
motivated to start and run their own businesses. It is not easy to separate people and their
socio cultural belonging. Studying a phenomenon without considering how the society
operates within their socio cultural contexts may result in missing important aspects of how
the lives of people are embedded into their social and cultural worlds and how they place
meanings to life worlds.

Survivalist entrepreneurship constitutes understanding on how poor rural female

entrepreneurs undertake their activities. Most female entrepreneurs in developing countries
are perceived to be a disadvantaged group in society. They overcome this belief by becoming
entrepreneurs, particularly in rural areas where gender equality is still an issue. These poor
rural female entrepreneurs own and manage micro and small businesses and most of these
businesses are service oriented and very informal. Apart from the reality explained here,
poor rural female entrepreneurs still have unequal resource ownership when it comes to fixed
assets like land. This deprivation limits their efforts and resources to undertake meaningful
entrepreneurship and become future successful entrepreneurs.

Female entrepreneurs examined in this study were very clear of their future goals. Most of
them wanted to grow their businesses either by adding another business or growing the
existing business. When they were asked whether they wanted to give up their businesses
and be employed, the majority were not in favour of that. Firstly, because with their
limitation in terms of education and training. They said this business is their own and nobody
can challenge their achievements. Secondly, they felt very proud to be business owners; their
confidence has improved and they get more respect from others in their groups. Perhaps the
businesses will be formalized and the motivation for starting business will shift from the
need for achieving life necessities to owning and managing growing businesses. Their
entrepreneurial activities are woven in their beliefs and contexts and that is how they operate.

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The study has shown how the phenomenon of entrepreneurship is context specific and it
differs across cultures. People may possess all the necessary psychological traits for being
entrepreneurs but their socio cultural circumstances will have an impact on how they
undertake their activities. In other words future research in female entrepreneurship and
especially in African countries should put emphasis on the context of operation both for the
studied group and the phenomenon under study.

8.3 Implications for policy and practice

This section presents the main insights of rural female entrepreneurship in Tanzania. The
practical and policy implications on the size, role, importance and future of female
entrepreneurship in Tanzania are also synthesized.

8.3.1 The future orientation of female entrepreneurship

It is believed that women in Tanzania decide to start business not as career but rather as a life
survival strategy (Nchimbi, 2000). Women see their entrepreneurship activities as a means
for making their lives better (Olomi, 2001; Rose et al, 2006). This view has been strongly
confirmed in this study. The study has seen respondents moving from first having nothing to
become capable providers for their families. In some cases, the entrepreneurs have been able
to shift towards becoming growth oriented entrepreneurs. Neema from Kongowe is a good
example. She has moved from owning a kiosk and selling charcoal to owning a guest house.

If given opportunities, it is evident that poor female entrepreneurs, especially in the rural
areas can shift from merely making life better to realizing more entrepreneurial potential.
They have found opportunities, some very modest, but ones that have enabled them to shift
from extreme poverty to a much stronger position. They may now be able to make choices
when operating their businesses.

Female entrepreneurs in Tanzania choose their activities based on their family obligations
and other factors. Some of the factors identified to affect their choice of business are their
abilities in business management skills, availability of capital and innovation (Olomi, 2009).
Many female entrepreneurs seem to conform to this prevailing argument presented in the
literature on why they choose their entrepreneurial activities (Rutashobya, 1995; ILO, 2003).
As Anderson (2000) puts it, entrepreneurship is a melding of self and circumstances. Most of

143
the businesses done by women are those which allow them to attend to their families before
going to the market or doing both activities at the same time. For example, in the coastal
areas some rural female entrepreneurs take their children to the market or prepare food for
their families at the market. In this way they fulfil their obligations to the family and also
manage to generate income. If these women were relieved of some of the family obligations
by other family members or social services like day care centres for children, they would
have more time to concentrate on their businesses or even expand and grow their businesses.

Apart from the evidence that there are signs of future growth orientation, most entrepreneurs,
women mainly operate tiny, minute micro businesses. Most of them grow at a very slow rate
or sometimes there is no growth at all. Yet despite the lack of obvious growth these
businesses are resilient; resilience in terms of both the process and the outcomes and it
directs what they do. Although many entrepreneurs aspire to better their businesses, their
dreams will take time to come into reality. Many are faced with barriers and constraints
which retard or kill their businesses and they may need to adopt survival strategies to pick up
and start up again. As discussed in the previous sections, these rural entrepreneurs would
clearly benefit from more support and guidance in terms of business management skills, the
importance of acquiring capital,loan management skills and developing appropriate attitudes
towards business growth and entrepreneurial performance. It can be argued that these
interventions may contribute to stimulate positive changes beyond mere survival and
eventually lead to the desired entrepreneurial development with the view to improved
national economy.

If these women improve their businesses, the community where they live will also benefit
and improve their life in return. The importance of entrepreneurship in Tanzania is displayed
in the way the business is part of everyday life and the way life is dependent on everyday
business. Female entrepreneurs carry the burden of taking care of their families and they are
obliged to provide for them. Given their huge family responsibility, these are the ones who
are more involved in trying to use the available resources in production of goods and
provision of services. Participation of women in the well being and the economy of their
country cannot be separated. The more they participate in income generating activities the
higher the national income and hence desired economical development. It can be argued that
the activities performed by female entrepreneurs have a direct influence on the economy and
therefore the better the entrepreneurial performance, the better the economy of the country.

144
So both at the micro level of family well being and at the broader macro economic level,
there seems a strong case to be made for supporting these micro business women.

Women have been on the forefront of many activities, like social, political and non political
campaigns. If female entrepreneurs are facilitated to learn skills, acquire loans, receive
business support services, the move may aid in overall improvement of entrepreneurship
activities particularly in rural areas. Better products may be produced and better services will
be rendered and more people, and in this case, more women may be motivated to undertake
entrepreneurial activities. In order to accomplish this it can be argued that the education
system of Tanzania should include entrepreneurship concepts at different levels of education
and equip female entrepreneurs with knowledge and skills to undertake entrepreneurial
activities in a manner which will encourage growth and profitability. Moreover, all women
should receive a basic education, so that a minimum level of literacy is achieved.

8.3.2 Government Participation in the improvement of entrepreneurship

By understanding how women think or what concerns them, the government will be able to
develop policies or programmes which will aim to improve the lives of female entrepreneurs
and their families. The different issues have been discussed in the previous chapters, but it
can be argued that the government has an important role to play in the development of
entrepreneurship in the country.

In Tanzania the administrative structure starts from village or street level to the national
level. In this study it was evident that the street or village local government plays an
important role in day to day activities of the female entrepreneurs. All loan applications must
be approved by the secretary of the local government. This structure has supposedly
improved the implementation of different policies and programmes in the area. It can be
argued that apart from having the administrative structure from the grassroots, most poor
rural female entrepreneurs are unaware of existing policies and programmes which are
intended for them. Thus there is a rural gap in the dissemination of this information. In order
for the rural people to improve their lives through entrepreneurship, more efforts should be
directed to the majority of the population who live in the rural areas. It can be argued that if
the existing policies and programmes were fully implemented across all areas of the country,
the overall operating environment for the rural entrepreneurs may be more conducive to
operate their businesses. With the upcoming dialogue of Public Private Partnership it can be

145
argued that if all stakeholders will participate seriously, the well being of individual
entrepreneurs, groups and the nation at large will benefit. For example local vegetable
growers are given opportunities to supply nearby public institutions.

8.3.3 Impact of socio cultural factors on rural entrepreneurship

As discussed in the previous chapters, Tanzania is a country with a large number of ethnic
groups with different socio cultural orientations, traditions and practices. It was noted how
some of these cultural beliefs have negative impacts upon entrepreneurship and hence
economic development of the country. As mentioned in chapter six and seven, witchcraft and
ignorance towards education have influenced the way people start and run their businesses.
Other difficulties are associated with religious and customary laws which discriminate
against women and hinder their efforts in undertaking entrepreneurial activities. These
impacts call for joint efforts to educate people on the negative effects of some customs and
beliefs. It can be argued that if female entrepreneurs are educated on the consequences of
their customs and beliefs, and how to overcome them, how to use the good customs and
traditions like communality and goodwill as assets in their business endeavours, their
entrepreneurship potential may be better realised. This intervention will also call for more
studies to be undertaken on issues regarding social and cultural beliefs.

8.4 Final comments and suggestions for further research

Understanding the socio cultural background and how it impacts on the daily entrepreneurial
activities of female entrepreneurs calls for joint awareness and effort from stakeholders from
community to national levels. It is of great importance that female entrepreneurs and the
activities they undertake be fully understood as a contextualised phenomenon. This
understanding may aid in motivating and supporting them. The state, local and international
organisations may also assist in improving the environment where these entrepreneurs
operate. For example the operating environment is better in Patandi compared to Kongowe
and Ruvu Darajani, simply because there is a large number of NGOs operating in the area.
Improvement of infrastructure such as better markets in Kongowe and Ruvu Darajani may
assist entrepreneurs to improve their performance. Technological and business training
programmes and facilities may be improved, for example Micro Finance Institutions
disbursing loans in Kongowe, Ruvu Darajani and Patandi could also add an element of
business support service to loan recipients.

146
There are positive directions on government policies which aim at improving the livelihoods
of women in general and in particular poor female entrepreneurs in rural areas. As one of the
officials of the Ministry of Trade who preferred to be anonymous said,”... if only a third of
policies on Women Development in Tanzania were implemented we would be somewhere
else speaking about something else...” The responses from research participants give a
picture of improvement in the general performance of female entrepreneurs and more women
have started micro enterprises as a way of improving their livelihoods. It is still a long way
for full scale performance to be achieved.

The importance of female entrepreneur’s contribution to developing economies cannot be

over emphasized, bearing in mind the economic contribution they make to their families,
community and (sometimes without being aware) to their nation’s economy. There are
constraints which may hamper the entrepreneur’s ability to perform well. These constraints
impact on the whole process of entrepreneurship at all stages. For the poor rural female
entrepreneurs in a poor country like Tanzania, the improvement of existing macro and micro
entrepreneurship operating environment is vital. Strategic short and long term interventions
to address problems facing female entrepreneurs may be one way of improving the enabling
environment.

Poor rural female entrepreneurs may be assisted to improve their performance by designing
specific programmes for female entrepreneurs. This point is evident in the comments of
some respondents; they say they have been left like orphans with no one to turn to. In turn
this has important ramifications for the national aim of promoting women enterprise.

Tanzanian communities have a role to play in improving the performance of

entrepreneurship which in turn improves the livelihood of people in their areas. Times have
changed and change of attitudes towards better life and more hard work might assist
entrepreneurs to reach their goals. In the long run this change of attitude and support may
encourage communities to support government initiatives and vice versa. Most respondents
showed concern for their children to have better education. Female entrepreneurs might
participate in government initiatives like universal primary education for all. There is scope
to promote community schools which have increased the number of pupils who get

147
opportunity to go to secondary school at affordable school fees. Respondents wished their
girl children be given opportunities to study.

Recognition of the role played by women in Tanzania may bring about changes which will
facilitate poor rural female entrepreneurs and assist in improving policy and practice.
Understanding what women need may be a good starting point, and then appropriate
interventions may be put in place and may bring changes which in turn will benefit the
economy and improve the lives of people. Support services should, nonetheless be based on
understanding the process of entrepreneurship from the women’s point of view.

This study has paved a way for further studies in the area of female entrepreneurship. This
study, like many others, has established the importance of conducting context specific
studies which aim at improving the way people do things and eventually better their
livelihood. It did not address all issues which affect how poor rural female entrepreneurs
undertake their activities, but it has covered to a greater extent the major socio cultural issues
in understanding the process of entrepreneurship in rural areas. The depths of issues affecting
female entrepreneurship in rural Tanzania may be better understood by conducting further
research.

This study enhanced understanding of female entrepreneurship in developing countries in a

way which has never been addressed before. It has created more questions than answers and
hence provoked more research in the area of female entrepreneurship. More studies could be
conducted in other cultural groups to examine how female entrepreneurs from these groups
undertake their activities. More specific research may be conducted to give a more distinct
understanding and depth to the influence of socio cultural background on rural female
entrepreneurship in African countries. The researcher suggests areas of research to be
investigated may include; the influence of education on entrepreneurship, the prospects of
entrepreneurship to all marginalised groups in the community. This study therefore can act
as a framework for a researcher to design and implement specific studies.

148
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APPENDICES

Appendix I: letter of informed consent to participate in the study

Dear Participant,
This letter intends to ask for your participation in the study about female entrepreneurship in
your village. The information provided is meant to ask you to participate in the study as an
informant. You should be aware that you are free to decide if you want to participate or not
and you are free to withdraw anytime without affecting your relationship with the researcher
during field work.

This study aims at understanding the process of entrepreneurship in your village market. The
procedure of this study will be a single episode with intervals in between. Data will be
collected from female entrepreneurs who are currently operating in the village markets and
those who have stopped for any reason. Also data will be collected from the ward/village
local government officers and micro finance institutions staff. Data collection will involve
also taking photographs with your consent.

You can ask any questions during or after participating in the study would be happy to share
with you the initial findings after field work and the findings after the study is completed.
There are no known risks or discomforts in undertaking this study. The main benefit for you
is to be able to participate in a study in your village.

Thank you for your time.

Lucy B. SSendi
Researcher
Source: This letter is influenced by the letter by John Creswell, 2009

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Appendix II: Research Guide

1. Present Circumstances
 Age
 Marital status
 Religion
 Tribe
 Number of children/dependants

2. Historical Background
 Family background
 Education
 Business motivation

3. Business environment
 Type of business
 Importance of the type of business
 Business income
 Market and prices
 Seasonality
 Household needs
 Importance of cash income and remittance

4. Operating Environment
 Sources of market information
 Inclusion and exclusion
 Knowledge management
 Innovation
 Policies and regulations

5. Availability of Livelihood assets

(i) Social capital
 Levels of social capital

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  Trends
 Nature of civic relations
 Membership

(ii) Natural capital

 Types and use of resources available
 Quality and quantity of resources
 Productivity of resources

(iii) Physical capital

 Physical infrastructures
 Availability of business premises

(iv) Financial capital

 Availability of Capital
 Availability of financial services
 Savings

(v) Human capital

 Availability
 Productivity

6. Livelihood structures
 Authority and jurisdiction
 Ownership and belonging
 Community /business leadership and management

7. Livelihood processes
 Analysis of policies and legislation
 Practice

8. Livelihood Strategies
 Portfolio of social groups
 Lifetime changes

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  Choices
 Combination of strategies and
 Achievability of objectives

9. Livelihood outcomes
 Political, social and economic rights awareness
 Financial Security
 Sources and quality of information
 Representation
 Access to business services

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