Socio-Cultural Determinants of Entrepreneurial Capabilities among the Chagga and Sukuma Small and Medium Enterprises in Tanzania

Abstract

This paper examines socio-cultural determinants (SCDs) linked to entrepreneurial capabilities (EC) among the Chagga and Sukuma Small and Medium Enterprises (SMEs) in Tanzania. A survey of 254 owner-managers was conducted in Kilimanjaro and Mwanza regions in order to collect quantitative data and case studies for qualitative data. Descriptive statistics and Binary Logistic Regression Model analysis were employed in estimating the effect of SCDs on EC. Results show that values, social factors, beliefs, norms and perceptions demonstrate positive effects while attitudes show a negative effect on EC among the Chagga and Sukuma. However, results show variation on the effect of SCD on EC between the Chagga and Sukuma in which the effect is stronger among the Chagga than Sukuma. This study concludes that SCDs have effect on EC and its implication is that individuals exposed to such SCDs are likely to have a sounding EC. The study recommends that policy makers should consider the role of SCDs in entrepreneurial undertaking.

Keywords: Socio-cultural Determinants, Entrepreneurial Capabilities, Chagga, Sukuma, SMEs, Tanzania