Abstract:
This study delves into “the effect of project management skills on the performance of startups in
Arusha City Council”, guided by the overarching objective of comprehensively understanding the
dynamics at play within the startup ecosystem. The investigation unfolds through three
interconnected objectives: firstly, assessing the awareness of project management skills among
startups; secondly, evaluating the role of project management skills on startup performance; and
lastly, exploring the challenges faced by startups in applying project management skills. Grounded
in resource-based theory, the study conducted a thorough analysis of a population comprising 100
startups, descriptive analysis and thematic analysis, thematic analysis was applied to key informant
interviews to unravel the nuanced challenges faced by startups,the first objective unearthed a
notable awareness gap among startups regarding project management skills. This deficiency is
rooted in systemic issues within the educational framework, where graduates enter the
entrepreneurial landscape without the requisite skills. However, the subsequent assessment of the
role of project management skills on startup performance presented a contrasting picture. Findings
revealed a positive and statistically significant effect of project management skills on startup
performance. Startups that demonstrated higher awareness and utilization of project management
skills exhibited enhanced efficiency, better resource allocation, and a greater likelihood of business
success. The qualitative exploration of challenges faced by startups in applying project
management skills provided valuable insights. Thematic analysis of key informant interviews
uncovered overarching challenges related to the educational system, founder awareness, and
limited access to specialized training. Startups grapple with a lack of practical project management
skills imparted through formal education, coupled with a general unawareness among founders
about the multifaceted nature of project management. The dearth of affordable and tailored training
programs exacerbates the challenge, hindering startups from cultivating the necessary skills.
