The Effect of Project Management Skills on the Performance of Startups in Tanzania

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.