Barriers to Business Start-up among Tanzanian University Graduates: Evidence from the University of Dar-es-salaam

Abstract

This article assesses barriers to business start-ups among university graduates by drawing evidence from the University of Dar-es-salaam. A cross-sectional research design was used with a sample comprising 308 graduates and 10 key informants. Data was collected using a structured questionnaire and key informant interview checklist and were analysed using the Structural Equation Modeling (SEM) whereby confirmatory factor analysis was performed using Analysis of Moment Structures (AMOS) and the Statistical Package for Social Sciences (SPSS) software. Pearson’s chi-square was used to test whether graduates who had not studied entrepreneurship and those who had studied entrepreneurship reported different start-up barriers. It was found that inappropriate teaching methods, lack of business experience, deficiencies in the university programmes, commitments on extended families and bureaucratic tendencies had greater contribution to hindering business start-ups. It was concluded that entrepreneurship study influenced the way graduates perceived the barriers; it was observed that graduates who studied entrepreneurship reported different start-up barriers from those reported by their counterparts. The results were statistically significant at p-value < 0.05. Higher learning institutions should adopt competent based curricula in order to impart necessary business skills to students and use the business apprenticeship approach while students are still on studies.

Societal, Culture and Entrepreneurial Opportunities Exploitation of New Venture Activities: Mediating Role of Proactiveness

“…Socialism as a policy failed in 1980 where the country ended up in economic crisis which forced the government to restructure its economic fabric and therefore started implementing privatization policy where market system was adopted resulting in privatisation of majority of the national enterprises. Forthwith, the policy started promoting foreign investment and local entrepreneurship (Katundu & Gabagambi, 2014). Nevertheless, the history of how Tanzania citizens adopted entrepreneurship was not the focus of this study and therefore, the subject was highlighted in passing.…”

“…The newness of measuring the influence of culture of individualism, uncertainty avoidance and power distance in entrepreneurs' to exploiting opportunities such as new venture activities in the area of interest (Tanzania) has been caused by some facts analysed in the literature. These facts expressed that: during colonialism there was a policy implemented to prevent citizens from participating in business activities especially during the 1960s (Katundu & Gabagambi, 2014). However, after the country gained its independence, it adopted socialist policy which also prevented her citizens from participating in business activities which had a nature of capitalism which was regarded as an economy's enemy (Chiraka, 2012).…”

“…The novelty of this is that the study is assessing this relationship in Tanzania's new venture activities. There is an interesting story about the country of interest that; before market system and during colonialism era, Tanzania adopted socialism policy which banned its citizens to participate in business activities (Katundu & Gabagambi, 2014). This system was embedded in socialism culture of highly collectivism, highly power distance and highly uncertainty avoidance (Garcia et al, 2014).…”

An Analysis of Collective Entrepreneurship of Smallholder Farmers In Zimbabwe In Realizing Market Opportunities: A Case of Chipinge District

“…The GET test is recommended as an effective instrument of assessing the entrepreneurial behavior of the respondents (Cromie and O'Donaghue, 1992;Cromie, 2000;Kirby, 2002;Katundu and Gabagambi, 2014;Nyello, Kalufya, Rengua, Nsolezi and Ngirwa, 2015).…”

Factors Influencing Organisation Efficiency of Water Supply and Sanitation Authorities in Tanzania: The Analysis of Mbeya Urban Water Supply Authority

“…The study employed cross-sectional research design in which data were collected at a single point in time. The design was chosen because it supports a variety of analytical techniques and allows comparisons of many variables at the same time (Katundu and Gabagambi, 2014). Data were collected between February and March, 2015 using self-administered questionnaires, key informant interviews and documentary review.…”