The Effects of Socio-Cultural Factors on the Performance of Women Small and Medium Enterprises in Tanzania

Abstract

Globally, Small and Medium Enterprises (SMEs) play a great role in employment creation, income generation and economic growth. However, in Tanzania women SMEs are faced with a number of factors including socio-cultural factors (SCFs) which hinder their entrepreneurial development. This paper assesses the effects of SCFs on the performance of women SMEs. The study was conducted in Dodoma urban and Chamwino districts in Dodoma region employing cross-sectional and case study research designs in which 80 women SMEs were surveyed using questionnaires. Data were analyzed using descriptive statistics and binary logistic model. Findings show that women immobility, poor support from society members and ethnicity affect negatively the performance of women SMEs. Conversely, family roles, level of education and role models were important factors in nurturing the performance of women SMEs. The study generally concludes that SCFs have negative effect on the performance of women SMEs. This implies that, women SMEs stressed under such SCFs cannot perform outstandingly. We recommend that the government should formulate policies that encourage women participation in entrepreneurial activities.

Key Words: Women SMEs, Socio-Cultural Factors, Performance, Tanzania