MGMT 225 Lecture 6: Entrepreneurship Development, Networking and Legal Framework

With

Dr. Donatus Peter Massawe

0713 350 601

MGMT 225 Lecture 6: Entrepreneurship Development, Networking
and Legal Framework

Objectives:

 To identify the government initiatives for promoting entrepreneurship

development in Tanzania and broad (Policies, Laws, and Regulations)

 To identify other initiatives for promoting entrepreneurship development

(business incubation)

 Understand the meaning and importance of networking in entrepreneurship

 To explain the meaning and role of SMEs (Meaning and Role of SMEs)
Government Initiatives for Promoting
Entrepreneurship in Tanzania
What is entrepreneurship !!!!!!!

Intrapreneurship refers to the practice where employees, individuals within organizations whether private companies,
government bodies, or NGOs develops new ideas, creating innovative solutions, improving services, or launching new
business lines from within the organization itself (Morais, Santos et al. 2021).

Is intrapreneurship learned !!!!!!!!!!!

According to Farrukh and Ghazzawi (2024) intrapreneurship is learned: While some people naturally have entrepreneurial
traits like creativity, problem-solving, and risk-taking, intrapreneurship is mostly developed through learning and experience.
How !!!!!!!:
 Education and Training: Courses on innovation, leadership, and business management help employees build
the skills needed to think and act like entrepreneurs within organizations (Kikas 2022).

 Workplace Experience: Being given opportunities to lead projects, suggest new ideas, and solve problems at
work helps employees practice intrapreneurship (Awotunde and Aregbeshola 2024).
Government Initiatives for Promoting
Entrepreneurship in Tanzania
Is intrapreneurship learned !!!!!!!!!!!

 Mentorship and Role Models: Learning from experienced leaders or innovative colleagues inspires and teaches others how to
spot opportunities and take action (Awotunde and Aregbeshola 2024).

 Organizational / Individual Culture: Companies that encourage innovation, allow calculated risks, and reward new ideas
create an environment where intrapreneurial skills can grow.

In Tanzania, as businesses modernize and industries become more competitive, learning intrapreneurship is becoming even more
important for employees who want to stand out and for organizations that want to survive and grow

Intrapreneurship Is Not Learned !!!!!!!!!!!

 Intrapreneurship is not always something that can be fully learned, because it also depends heavily on personal traits and
inner motivation that training alone can not create (Hester 2024)

 Mindset over Skills: Intrapreneurship is more about mindset than just technical knowledge. You can teach someone how to
write a business plan or run a project, but you cannot easily teach them to be passionate, visionary, or willing to challenge the
status quo
Government Initiatives for Promoting
Entrepreneurship in Tanzania

Intrapreneurship Is Not Learned !!!!!!!!!!!

 Environmental Dependence: Even with training, if the environment is too rigid or discourages new
ideas (which is often the case in hierarchical workplaces, including some in Tanzania), employees may
never behave entrepreneurially, no matter how much they have "learned (Aparicio, Turro et al.
2020).

 Limited by Fear and Comfort Zones: Some individuals naturally avoid risks or prefer following
instructions rather than leading innovation. No amount of learning will turn everyone into an
intrapreneur because personal comfort zones are hard to break purely through education
(Christerson and Winkelhorst 2023).

Summarily: Intrapreneurship can be encouraged and supported, but it cannot be fully taught like
mathematics or accounting it often relies on inner qualities that education alone cannot instill.
Government Initiatives for Promoting Entrepreneurship
Development in Tanzania…..1

 National Entrepreneurship Development Strategy (NEDS)

The government launched NEDS to create a coordinated framework for developing entrepreneurship. It focuses on
improving access to finance, building entrepreneurial skills, creating enabling policies, and supporting innovation.

 Tanzania Entrepreneurship and Competitiveness Centre (TECC)

TECC was set up to promote entrepreneurial culture and build capacity among Tanzanian entrepreneurs through
training, research, mentorship, and networking opportunities

 Youth Development Fund (YDF)

This fund provides financial support to young entrepreneurs, especially for those starting businesses in agriculture,
technology, and manufacturing sectors. It helps reduce barriers like lack of capital among youth.

 SME Policy 2003

The Small and Medium Enterprises (SME) Policy aims to enhance the growth and competitiveness of small
businesses through better infrastructure, access to information, technology transfer, and skills development
Government Initiatives for Promoting Entrepreneurship Development in Tanzania…..2

 Business Registration and Licensing Agency (BRELA) Reforms

BRELA introduced online business registration systems, making it easier and faster for entrepreneurs to formally register
their businesses, reducing bureaucracy and corruption

 Establishment of SIDO (Small Industries Development Organization)

SIDO helps by supporting small industries with technical training, entrepreneurship education, financial access, and
incubation centers, particularly targeting local industries and manufacturing

 Tanzania Agricultural Development Bank (TADB)

Recognizing agriculture as a backbone of the economy, TADB was created to finance agribusinesses and support rural
entrepreneurs, particularly smallholder farmers and agro-entrepreneurs.

 University Entrepreneurship Programs

Several universities have incorporated entrepreneurship courses and incubation centers to encourage students to develop
entrepreneurial mindsets before they graduate

Each of these initiatives helps create an ecosystem where Tanzanians are motivated, trained, and supported to start and grow
Initiatives for Promoting Entrepreneurship Around the World
 Access to Finance:

• Why: Entrepreneurs need capital to start and grow their businesses / ideas.

 Initiative: Provide startup loans, grants, microfinance schemes, and venture capital funds targeted at new and small
businesses.

 Entrepreneurship Education and Training

• Why: Many potential entrepreneurs lack the skills and knowledge needed to succeed.

 Initiative: Offer entrepreneurship courses, workshops, mentorship programs, and business incubation training in
schools, universities, and community centers

 Supportive Policies and Regulations

• Why: Heavy bureaucracy and unclear regulations discourage new business creation

 Initiative: Simplify business registration, offer tax incentives for startups, and create pro-entrepreneurship laws that
encourage innovation and protect new businesses.
Categories of Entrepreneurial in Tanzania….1

 Categories of Entrepreneurs
 Entrepreneurs can be categorized based on factors such as business size, formality, sector, and motivation.

 Based on Business Size:

• Micro-entrepreneurs: Operate small businesses with fewer than 5 employees (e.g., kiosks, street vendors).

• Small Entrepreneurs: Businesses with 5–49 employees and moderate capital investment (e.g., local shops,
small transport companies).

• Medium Entrepreneurs: Employ 50–99 people with larger investments (e.g., medium-sized manufacturing or
agri-processing firms).

• Large Entrepreneurs: Own businesses with 100+ employees, usually registered companies (e.g., construction
firms, large exporters).
Categories of Entrepreneurial in Tanzania….1

 Based on Formality:

• Formal Entrepreneurs: Registered with government institutions (TRA, BRELA, local authorities); follow legal and tax
regulations

• Informal Entrepreneurs: Operate without formal registration, often avoiding taxes and regulations (common in rural and peri-
urban areas).

 Based on Sector

• Agricultural Entrepreneurs: Involved in farming, livestock, fisheries, or agri-business (e.g., sunflower oil processing, food
processing, meat processing).

• Trade and Retail Entrepreneurs: Engage in buying and selling goods, either wholesale or retail (e.g., duka la rejareja, matching
guys).

• Service Entrepreneurs: Offer services such as salons, hospitality, transport, education, or ICT

• Manufacturing Entrepreneurs: Produce goods on a small or large scale, including tailoring, food processing, and construction
materials.
Categories of Entrepreneurial in Tanzania….1

 Based on Motivation:

• Opportunity-driven Entrepreneurs: Start businesses to pursue market opportunities, often with growth ambitions.

• Necessity-driven Entrepreneurs: Start businesses due to lack of formal employment or income, mainly for
survival.

 Based on Ownership:

• Individual Entrepreneurs: Owned and managed by one person

• Family-owned Entrepreneurs: Businesses run by families, often inherited or passed through generations
(think of father, mother, brother or sisters business

• Group/Cooperative Entrepreneurs: Formed by groups with a shared goal (e.g., youth groups, women
cooperatives, SACCOS). Some one starting a business as influenced by social circle (people who are around you
and their influence towards decision to engage in business.
The Importance of Entrepreneurship: Micro, Small, Medius and Larger businesses….1

 Importance!!!! (Elgarhy and Mohamed 2023)

 Job Creation

Entrepreneurship are the largest source of employment in Tanzania, providing jobs for a significant portion of the
population, especially youth and women.
 Economic Growth

They contribute to GDP by producing goods and services across sectors like trade, agriculture, manufacturing, and services.
 Innovation and Flexibility

Entrepreneurship drive innovation by offering unique products and quickly adapting to market needs and changes.
 Poverty Reduction

By generating income and employment in both urban and rural areas, Entrepreneurship help reduce poverty and improve
livelihoods.
 Support for Industrialization

Entrepreneurship serve as suppliers and service providers to larger industries and help develop local value chains
Networking Entrepreneurship

 Meaning !!!!!! networking refers to the process of building and nurturing relationships with people who can support,
influence, or contribute to the success of a business (Elgarhy and Mohamed 2023).

 Networking helps entrepreneurs gain access to resources, opportunities, information, and markets, while also
enhancing their credibility and visibility within their industry or community.

 Types & Importance of Networking in Entrepreneurship (whom are you networking with)
 Mentors and Advisors (provide guidance)

 Strategic Direction: They help entrepreneurs make informed decisions about the business model, growth strategies, and market
entry.

 Problem Solving: They offer advice on overcoming challenges such as funding gaps, team management, or product development

 Skill Development – Mentors help build leadership, negotiation, and decision-making skills essential for business success.
Networking Entrepreneurship

 Types & Importance of Networking in Entrepreneurship :

 Investors and financial partners (offer funding)

 Startup Capital: They provide the initial funds needed to launch the business, covering product development,
operations, and marketing.

 Growth Financing: They invest in expanding to new markets, increasing production, or hiring talent.

 Bridge Funding: Financial partners help sustain operations during revenue gaps or in-between funding rounds.

 Access to Credit: They may facilitate loans, credit lines, or other financial instruments with favorable terms.

 Strategic Input: Beyond money, they often bring financial discipline, performance monitoring, and business
connections.

 Validation and Credibility: Securing funding from reputable investors or financial institutions
Networking Entrepreneurship
 Types & Importance of Networking in Entrepreneurship :

 Suppliers and customers (provides raw material and customers ie reviews, comments)

 Suppliers:

 Provide Raw Materials or Inventory: They ensure the entrepreneur has the necessary inputs to produce goods or
deliver services.

 Enable Product Quality and Consistency: Reliable suppliers help maintain standards, reduce delays, and support scaling
operations.

 Customers:

 Generate Revenue: They are the end users who buy products or services, fueling business growth.

 Offer Feedback: Through reviews, comments, and suggestions, they help improve product design, quality, and customer
experience.

 Enhance Brand Reputation: Positive customer engagement builds trust and encourages word-of-mouth promotion.
Networking Entrepreneurship
 Types & Importance of Networking in Entrepreneurship :

 Other entrepreneurs and industry peers (knowledge sharing and collaboration)

 Exchange of Ideas: They offer fresh perspectives, innovative strategies, and practical tips that can spark new
business approaches.

 Learning from Experience: Sharing successes and failures helps avoid common pitfalls and accelerates learning
curves.

 Collaborative Opportunities: Entrepreneurs may form partnerships, joint ventures, or co-marketing initiatives
that expand market reach.

 Emotional Support and Motivation: Engaging with like-minded peers provides encouragement, reduces
isolation, and builds resilience.

 Access to Networks: Industry peers often introduce one another to investors, clients, suppliers, and mentors,
broadening business opportunities.
Networking Entrepreneurship

 Types & Importance of Networking in Entrepreneurship:

 Government and regulatory bodies (for compliance and support programs)

 Regulatory Compliance: They establish laws, licenses, and standards that businesses must follow to operate legally
and ethically

 Business Registration and Permits: They facilitate the legal setup of enterprises through business licensing and
formal registration

 Support Programs and Incentives: They offer grants, tax reliefs, training, and development programs to encourage
entrepreneurship and innovation

 Access to Infrastructure: Governments invest in roads, electricity, internet, and other infrastructure that enable
business operations

 Policy and Advocacy – Through pro-business policies and advocacy initiatives, they create a stable environment for
entrepreneurs to grow and invest
 End

OF

MY

Presentation

Very Goodbye
 Possible Questions Lecture 5
• Test / Assignment
• Q1: Out of the three types of businesses you are familiar with, which one would you prefer to start and
why?

• Q2: Reflecting on your own experiences, consider the importance of intellectual property for a business.
What are five types of intellectual properties you are familiar with, and why do you think it is crucial for
a business to have these properties? How might each type contribute to a company's long-term success?

• Q3: When considering voluntary vs. compulsory winding-up, which do you think presents more
challenges for business owners, and why? Additionally, why do you believe it is important for a business
to go through the winding-up process?

• Q4: What do you know about the business life cycle? Discuss various stages of the business life cycle,
by highlighting the key features of each stage
 Possible Questions Lecture 6
• Test / Assignment
• Q1: Reflect on a Tanzanian entrepreneurial success story. What role, if any, did government intervention play
in that journey?

• Q2: How might networking contribute uniquely to the success of your chosen business compared to relying
solely on personal effort?

• Q3: Why might policymakers prioritize entrepreneurship in economic planning, and what are the risks of
overlooking it

• Q4: Using examples like the Tanzania Startup ventures, how do incubation and mentorship programs
contribute differently to idea development, resource access, and market readiness?

• Q5: Reflecting on your experiences with Tanzanian entrepreneurs from different communities and tribes, do
you believe that successful entrepreneurship is driven more by training or natural ability? Why do you think