DS 2204 3.0 CHALLENGES AND CONDITIONS FOR ENTREPRENEURSHIP SUCCESS/FAILURE IN TANZANIA

3.0 CHALLENGES AND CONDITIONS FOR ENTREPRENEURSHIP SUCCESS/FAILURE IN TANZANIA

3.1 Challenges for entrepreneurship success/failure in Tanzania

The success/failur of an entrepreneur in starting and managing a profitable business does not lie on his or her sheer determination to succeed alone. The foundation of running a successful business rests on a number of other socio-economic, political, cultural and environmental factors:

a)  Financial base: A variety of financing sources both debt and equity must be available. Banks and government need to be involved in financing new business ventures at reasonable rates.

b) Education and training: Entrepreneurs need to have basic education and sufficient training and or experience in the business fields they undertake. In our country lack of management skills is often identified as one of the major cause of most business failure.

c)  Infrastructure: An entrepreneur stands better chances of success where efficient telecommunication systems, transport facilities and distribution networks are well advanced and reliable.

d) Laws and regulations: Rigid laws and regulations in business may be a cause of encouraging entrepreneurial activities. For example bureaucratic procedures of issuing trade license will definitely discourage business starters.

e)  Taxes: Taxes levels and duties become a nightmare for entrepreneurs. Heavy taxes levied on business establishments reduce profitability.

f)   Trade regulations: Strong trade regulations, quotas and tariffs are normally counterproductive. Elimination of trade barriers makes domestic business competitive and eventually stronger.

g)  Research: Free investigations and experimentations must be made to discover new and better ways of doing things to enable entrepreneurs develop product and service ideas that would meet the new need in the market place.

h) Society encouragement and support: Trend leaders of society should propagate hard work, self employment, self reliance and risk reward. For example politicians, writers, reporters, teachers, should extol the gains of entrepreneurship across salaried employment.   etc………………..

NB: The above conditions can be explained as advantages (opportunities) or challenges (drawbacks) for entrepreneurship success in Tanzania.

4.0 THE ROLE OF GOVERNMENT AND PRIVATE SECTOR IN MAKING ENTREPRENEURSHIP   SUSTAINABLY PROFITABLE IN DEVELOPING COUNTRIES