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THE PERFORMANCE OF SUBSISTENCE ENTREPRENEURS IN TANZANIA’S INFORMAL ECONOMY

Institute of Marketing and Management, Department of Management, esp. Corporate Sustainability, University of Hohenheim, Schloss Osthof-Ost 570 G, Schwerzstraße 42, 70599 Stuttgart, Germany

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KATHRIN BORNER

Institute of Marketing and Management, Department of Management, esp. Corporate Sustainability, University of Hohenheim, Schloss Osthof-Ost 570 G, Schwerzstraße 42, 70599 Stuttgart, Germany

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https://doi.org/10.1142/S1084946717500078Cited by:14 (Source: Crossref)

Abstract

Many scholars have found difficulties with the applicability of Western entrepreneurship typologies in non-Western contexts. Hence, this paper “takes a step back” by revealing what does apply as opposed to what does not apply. First, this paper investigates what the performance of subsistence entrepreneurs in Tanzania’s informal economy consists of. Second, it examines which demographic and social factors predict that performance. Based on a literature review and a pre-study, a main study with questionnaires was completed by 152 informal food vendors — that is, “subsistence entrepreneurs”, in southern Tanzania. Next, correlation, factor, reliability and regression analyses were performed to test the hypotheses. Based on a factor analysis, a distinction is made between basic performance and advanced performance. The results show that advanced performance is positively influenced by experience and age; but other factors, such as the subsistence entrepreneur’s gender, education and support from family, have no effect.

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