FACTORS INFLUENCING PERFORMANCE OF SMALL – SCALE WOMEN ENTREPRENEURS IN TANZANIA

Abstract

The purpose of this study was to assess the factors influencing the performance of small–scale women entrepreneurs in Arusha region. This study focused on three (3) objectives: to analyse the influence of social factors on the performance of small–scale women entrepreneurs, examine the influence of economic factors on the performance of small–scale women entrepreneurs and evaluate the influence of political factors on the performance of small–scale women entrepreneurs. The study adopted a pragmatic research philosophy. Descriptive research design was used. The study employed both quantitative and qualitative research approaches. A sample size of 400 women SMEs was drawn from the study population of 167,563 using simple random sampling method while purposive sampling was used to select one (1) trade officer for interview. Questionnaire was used to collect primary data that were analysed using descriptive statistics and presented in the form of means, standard deviations, frequencies and percentages. The study found that 51.0% of the variation in business profit can be explained by the marital status, family support and gender inequality (Adjusted R2 = .510); 36.0% of the variation in business profit can be explained by the price fluctuation, business capital and financial grants (Adjusted R2 =.360) and 57.1% of the variation in business profit can be explained by the government support, entrepreneurship policy and tax policy (Adjusted R2 =.571). The study concludes that socio factors, economic factors and political factors has positive and significance influence the performance of the women SMEs in Arusha city. The study recommends that government should raise awareness to society regarding gender balance issues that affect women SMEs participation in business. Additionally, stakeholders should give women SMEs a fair playing field when it comes to loan availability, keeping in mind the cultural constraints that prevent women from owning assets that can be pledged as security. Moreover, government should implement a special tax package through TRA to assist women SMEs in effectively enhancing their operations.