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This study examined entrepreneurial inclinations among vocational training centres (VTCs) using a sample of 508 trainees from 12 VTCs in Iringa region, central
Tanzania. A majority of VTC trainees have interest in starting own businesses,
motivated primarily by the need to have control over their own lives. While gender
and having taken entrepreneurship courses have no significant effects on start-up
inclinations, perceived chances of getting a job and background of entrepreneurial
family are positively associated with interest in entrepreneurial intention. Results
suggest a need to re-examine entrepreneurship training in VET and for policy
makers to be careful in promoting entrepreneurship as an alternative career for
those unable to secure paid jobs.
Keywords: Entrepreneurship; vocational education; entrepreneurial aspirations.
INTRODUCTION
Background
Many African countries, including Tanzania envisage to create a strong,
diversified, resilient and competitive economy that can cope with the
challenges of the regional and global economy. Many countries are also
committed to the Millennium Development Goals (MDGs) for reducing poverty, hunger, diseases, illiteracy, environmental degradation and
Director
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do it as a career. The fact that they have been pushed into business affects the
MSE sector participants self-perception, future intentions and behaviours.
In relation to SME operators in Tanzania, Toroka and Wenga (1997) have
observed that:
Many believe that they are in the MSE sector by failure,
if not of their own, then that of the state, or worse that of fate.
Few attach value to what they are doing. If asked for their
preferences, a majority would rather be employed in some
formal establishment. This is most clearly expressed by what
they wish for their children. Many owner-managers in the
MSE sector in Tanzania are anxious that their children attain
higher levels of education so that they may be spared life in
the sector. They do not regard their business as an estate to
be hatched for the day their children could take over (p. 25).
In relation to their entrepreneurial behaviour, Oyhus (1999) has noted that
they are neither risk-taking nor opportunity seekers. Regarding innovation,
they are almost uniformly copyists and when they do something new (such
as starting a business) it is because they are forced to do so. Only a very small
minority develop positive motivation and adopt growth-seeking behaviours
(Olomi, 2001). This may explain why even most of those who go through the
extensive vocational education system are unable to demonstrate competitive
capacity even in the local market.
Problem Statement
For small enterprises to become an engine of widely shared growth, it is necessary that learning institutions develop competencies that enable their graduates to start and develop meaningful enterprises. Different colleges have
taken measures in this direction, including introduction of entrepreneurship
courses. The notion of using the mainstream education and training system to
develop entrepreneurial competencies is a relatively recent phenomenon and
there is little knowledge of what the objective should be and what approaches
may work best, how and why. Success in this endeavour demands a good
understanding of entrepreneurial inclinations of trainees as well as the effect
of interventions already underway. In particular, it is important to know the
degree to which VTC trainees are attracted to self-employment and factors, which contribute to the inclination. As well, where entrepreneurship
courses have been introduced, it is useful to assess the impact these have on
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independence, internal locus of control and a moderate risk-taking propensity are more likely to start their own businesses compared to others. These
attributes naturally drive them to starting and developing their own independent businesses. This is because the entrepreneurial career offers greater
possibilities for them to realize their potentials and is more consistent with
their need for freedom compared to salaried employment. However, most
individuals in Tanzania as in many other developing countries are driven to
start businesses out of economic necessity they dont have salaried jobs
and must start some income generating activity to meet basic needs. It has
however been reported that those who start because of economic necessity
have a passive disposition towards the future (Olomi, 2001) and are neither
risk takers nor innovative (Oyhus, 2001).
Sociological theories suggest that entrepreneurial attitudes, intentions and
behaviours are socially generated and sustained. For example, those who
grow up around a society or family that runs business or where business
entrepreneurship is highly valued are likely to learn and model this tendency, perceiving it to be feasible, more socially desirable and rewarding
than employment (Hisrich and Peters, 2002). Also, marginalized individuals may be driven to seek freedom and success independently through business activity. The desire to develop (or not to develop) a growing enterprise
may also be influenced by the meaning that one attaches to business, which
in turn is socially generated and sustained. For example, people who start
businesses because they enjoy performing the operational role in the business (carpentry, tailoring, hair dressing, etc.) may not be motivated to grow
beyond the owner-managed phase because they will be forced to take on a
supervisory role in the business, which is not their primary motivation for
starting the business (Stanworth and Curran, 1976; Olomi, 2001).
In Tanzania, as in many other societies, women are socialized to prefer
activities which are related to their reproductive role and to be less ambitious
compared to men. Indeed, research shows that women entrepreneurs tend to
put less importance on traditional measures of performance, such as growth
and profits and more importance on relationships and ability to effectively
combine business and family roles (Nchimbi, 2002). Mushipe (2002) found
female University students to prefer gendered type of activities and have
lower growth aspirations compare to their male counterparts.
The VETA Labour Market Report of 2002 revealed that very few graduate
of vocational training institutions were interested to become self-employed.
In the selection interview for joining vocational training centres, most
trainees reported that they wanted to join VTCs because their parents did
not have money to pay for their secondary education. Most of those whose
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parents were engaged in some technical jobs (e.g. garages) wanted to join
them. Very few intend to study and then use their skills to employ themselves
(VET-Iringa, 2003). It would therefore be expected that few trainees have
positive motivation (interest) in self-employment.
One of the key roles of training institutions is to socialize people in specific socially desired directions. It is therefore reasonable to expect students
who take courses intended to develop their entrepreneurial interest and capabilities to have a greater propensity of starting their own businesses.
Environmental differences may determine the opportunities and possibilities open to different sets of individuals. This explains the spatial variation
in the rate of formation and growth of small businesses in various parts
of world as well as within different countries. Environmental factors may
include socio-economic structure, the economy, and culture. The economic
factors that are considered responsible in small firm formation include rate
of unemployment, information, access to finance, availability of premises,
and demand among others. Hence people who have greater access to other
opportunities, including salaried jobs may have less interest in starting their
own businesses compared to those with ready access.
The review of the literature above leads to the following hypotheses which
are tested in this study:
H1: Few VET trainees have interest in starting their own businesses, and
where this interest exist, the main motivation is economic necessity.
H2: Entrepreneurial inclinations vary by gender; female trainees have less
interest in business and are fewer ambitions in terms of future growth.
H3: Training in entrepreneurship enhances interest in doing business as well
as growth aspirations.
H4: The higher ones perceived chances of securing a paid job, the less ones
interest in starting a business.
H5: VET trainees with parents who are self-employed have more interest
in self-employment compared to those whose parents are employed in
salaried jobs.
Methodology
The study was carried out in Iringa region in central Tanzania. It is a relatively remote region with no major urban centres. The region was chosen
because it has many developed VET Centres. It was deliberately decided to
research a region outside the main commercial centres of Tanzania, where
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Meaning
Start-up inclinations
Growth intentions
most research activities take place. This was both a descriptive and analytical study employing primary data, which were obtained from structured
questionnaires administered to final year students of 12 vocational centres
in Iringa making a total of 508. In each of the 12 colleges, all students in
one trade were included in the sample, the objective being to come up with
a heterogeneous sample. Table 2 shows the distribution of respondents by
centre.
A standard semi-structured questionnaire was administered with the
assistance of class instructors during class time with the permission of
Table 2. Distribution of Respondents by Training Institution.
Name of VET Centre
Frequency
Percent
37
55
52
54
19
22
36
6
76
12
134
5
7.3
10.8
10.2
10.6
3.7
4.3
7.1
1.2
15.0
2.4
26.4
1.0
Total
508
100.0
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RESULTS
Profile of the Respondents
Distribution of respondents by gender and area of specialization is shown in
Table 3.
The analysis shows that, male trainees are over-represented in carpentry, electrical, mechanics, masonry, and welding courses all of which are
traditionally male dominated activities. On the other hand, female trainees
are over-represented in tailoring and printing courses. Four fifths (81%) of
the female trainees are in tailoring compared to only 1.7% of male trainees.
Chi-square test of significance confirms that these differences are statistically significant at the 5% level. The explanation could be that women and
men have been socialized to prefer certain activities to others.
Figure 1 shows the distribution of the respondents by age.
Table 3. Gender of Respondents Against their Specialization.
Specialization
Male
Female
Total
Count
Count
Count
70
55
5
118
20
32
2
23.2
18.2
1.7
39.1
6.6
10.6
0.7
7
13
166
8
2
2
8
3.4
6.3
80.6
3.9
1.0
1.0
3.9
77
68
171
126
22
34
10
Total
302
Pearson Chi-Square
Value
364.787
100
df
6
206
100
Sig.
0.000
508
%
15.2
13.4
33.7
24.8
4.3
6.7
2.0
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80
60
40
Count
20
0
15
16
17
18
19
20
21
22
23
24
25
26
28
29
30
32
38
40
Age of respondent
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Male
Female
Count
Count
Total
Count
Business planning
Small business management
Enterprising tendencies
Management
None
56
13
73
31
129
18.5
4.3
24.2
10.3
42.7
30
1
72
30
73
14.6
0.5
35.0
14.6
35.4
86
14
145
61
202
16.9
2.8
28.5
12.0
39.8
Total
302
100.0
206
100.0
508
100.0
Pearson Chi-Square
Value
16.128
df
4
Sig.
0.003
Male
Female
Total
Count
Count
Count
Very Interested
Interested
Not sure
Not interested
Not at all interested
185
53
50
10
4
61.3
17.5
16.6
3.3
1.3
131
37
35
3
63.6
18.0
17.0
1.5
0.0
316
90
85
13
4
62.2
17.7
16.7
2.6
0.8
Total
302
206
100.0
508
100.0
Pearson Chi-Square
Value
4.508
100
df
4
Sig.
0.342
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Male
Female
Count
Yes
Probably
No
178
104
20
Pearson Chi-Square
Total
Count
Count
58.9
34.4
6.6
138
63
5
67.0
30.6
2.4
316
167
25
62.2
32.9
4.9
Value
6.209
df
2
Sig.
0.045
Probably
No
Total
Count
Count
Count
59.7
69.1
69.0
57.1
40.9
67.6
10.0
24
17
49
48
10
10
9
31.2
25.0
28.7
38.1
45.5
29.4
90.0
7
4
4
6
3
1
0
9.1
5.9
2.3
4.8
13.6
2.9
0
77
68
171
126
22
34
10
100.0
100.0
100.0
100.0
100.0
100.0
100.0
Total
316
62.2
167
32.9
25
4.9
508
100.0
Pearson Chi-Square
Value
32.29
df
12
Sig.
0.001
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Male
Female
Total
Count
Count
Count
48
15.9
27.7
0.28
105
20.7
99
32.8
27.7
0.28
156
30.7
10
122
3.3
40.4
7.3
33.5
0.07
0.33
25
191
4.9
37.6
23
7.6
3.9
0.04
31
6.1
100.0
1.00
508
100.0
302
Value
17.528
100
df
4
Sig.
0.002
the trainees who chose some trades did so after deciding that they would later
employ themselves. Clearly, more research is needed to unravel the reasons
behind these differences in preferences by type of training.
How the Business Will be Established
Trainees who reported that they intend to start businesses were asked to
indicate how they would start them. As shown in Table 8, only about a fifth
plan to start immediately after graduation and focus only on business. Most
of the rest prefer to either start on part-time basis (while employed) and quit
their jobs later.
There is a statistically significant difference between female and male
trainees in terms of how the business will be started ( p < 0.05), with female
trainees expressing more readiness to start immediately and focus on business from the time they graduate. This may reflect the fewer entry barriers
in the kinds of businesses that they express interest in.
Entrepreneurship Training and the Intention to Start Own
Businesses
In order to ascertain whether entrepreneurship training in VTCs motivates
trainees to start own businesses, respondents were asked whether they had
taken entrepreneurship courses and if so how these had helped them. The
responses are shown below.
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Yes
No
Total
Count
Count
Count
243
189
308
99.6
99.5
100
1
1
0
0.4
0.5
0.0
244
190
308
100
100
100
Total
No
%
Count
Count
Yes
Probably
Not thought of it
No
198
115
12
5
60.0
34.8
3.6
1.5
118
52
6
3
66.3
29.2
3.4
1.7
316
167
18
7
62.2
32.9
3.5
1.4
Total
330
100.0
178
100.0
508
100.0
Pearson Chi-Square
Value
2.057
df
4
Sig.
0.725
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Business plan
Small business
management
Enterprising
tendencies
Total
Pearson
Chi-Square
Probably
Count
Count
47
5
32.4
3.4
36
7
93
64.1
145
100.0
No
Total
Count
Count
41.4
8.0
3
2
23.1
15.4
86
14
35.1
5.7
44
50.6
61.5
145
59.2
87
100.0
13
100.0
245
100.0
Value
df
Sig.
10.226
0.250
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Mean
t-value
df
Sig.
0.636
1.839
1.828
1.625
1.766
3.283
0.279
1.165
2.450
3.060
405.828
417.272
443.144
415.595
438.236
372.596
413.202
433.630
404.672
403.592
0.525
0.067
0.068
0.105
0.078
0.001
0.781
0.245
0.015
0.002
Male Female
To have more control over life
Only way to make a living
Continue a family tradition
To do what I like most
To supplement income from salary
To build a large company
To overcome career barriers
To follow the example of a person I admire
To create employment for dependants
To make more money than would otherwise
4.36
4.07
2.88
4.10
4.25
4.01
3.38
3.70
3.97
3.99
4.30
3.86
3.10
3.91
4.08
3.62
3.34
3.55
3.68
3.62
For both sexes, the most important motives are to have control over ones
life and to supplement income from salary!. This is consistent with the observations made earlier that some of the respondents actually planned to start
a business on part-time basis, while maintaining a salaried job. The least
important reasons for both sexes were to overcome career barriers and to
continue a family tradition.
In terms of the gender differences, male respondents were significantly
more motivated by the need to to build a large company, to create
employment for dependants and to make more money than would otherwise make compared to their female counterparts. This is consistent with
the understanding that women have been socialised to be less ambitious
than men. They are therefore less likely to want to develop large entities or
innovative compared to their male counterparts. This has implications for
training institutions and other socialisation agents.
Many institutions are encouraging students to think of self-employment
as an alternative to salaried employment. The study also sought to establish
whether those who perceived they are less likely to find salaried jobs have
greater interest in starting their own businesses. The results are shown below.
The results in Table 13 shows that, contrary to expectations, there is a
statistically significant positive relationship between likelihood of securing
a job and both interest and intention to start a business. This means that those
who feel that they have what it takes to secure a job also believe that they
have the competencies to start and develop a business, whereas those who
do not feel confident about successfully starting and developing businesses
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118
(Constant)
Likelihood of
getting a job
(Constant)
Likelihood of
getting a job
Interest in starting
a business
Intention to start
business
Independent
Variable
Dependent
Variable
1.249
6.809E-02
1.310
0.106
Unstandardized
Coefficients
(B)
0.084
0.027
0.114
0.036
Std.
Error
0.112
0.128
Standardized
Coefficients
(Beta)
14.819
2.528
11.528
2.908
0.000
0.012
0.000
0.004
Sig.
0.012
0.014
Adj R
sq
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Whether Copying
or Innovating
Copy
Innovate
Total
Yes
No
Not applicable
462
N/A
N/A
0
N/A
N/A
462
0
46
90.9
0.0
9.1
Total
462
508
100.0
have deficiencies which are likely to make it harder for them to secure paid
jobs as well. This suggests that the view of self-employment as an alternative
for those who cannot secure salaried employment may be untenable.
Types of Businesses Which Trainees Want to Start
On the types of the businesses respondents were planning to start after graduation, about 91 per cent of them said that they will start businesses that are
related to the areas of their specialization (Table 13).
Unfortunately all of the respondents who would start businesses within
their areas of specialization said that they would only copy what others are
doing (copy-cat). That means they are not innovative.
Family Background and Intention to Start a Business
It was hypothesized that, in line with the literature, trainees whose parents
are engaged in business have been better socialised to the entrepreneurial
career and will therefore be more likely to express intentions to start their
own businesses. Table 15 below demonstrates that this is indeed the case.
There is a statistically significant association ( p < 0.05) between ones
family background and intention to start a business among the trainees.
About three quarters of those whose parents are engaged in business activities state that they intend to start their own businesses compared to only
50% of those whose parents have other backgrounds. These findings corroborate the long established intergenerational inheritance of enterprise culture
theory. It strengthens the argument for deliberately building entrepreneurial
values, interests and intentions on the premise that these are made, rather
than in-born.
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No
Total
Count
Count
Count
Yes
Probably
No
129
32
5
77.7
19.3
3.0
187
135
20
54.7
39.5
5.8
316
167
25
62.2
32.9
4.9
Total
166
100.0
342
100.0
508
100.0
Pearson Chi-Square
Value
df
25.224 2
Sig.
0.000
Firm-Size Aspirations
With regard to firm growth, a majority of the respondents have very low
aspirations; only about 10% aspire to develop businesses that employ over
10 employees in the first five years. As seen in Table 12, almost 60% aspire
to have no more than 4 persons. To analyze gender differences in firm size
aspiration, aspired number of employees was cross tabulated with gender
(Table 16).
The analysis shows that male trainees had higher aspirations for growth
than their female counterparts. However the difference is not statistically
significant as shown by the results of the chi-square test above. Contrary
to expectations, female trainees do not have statistically significant lower
expectations compared to their male counterparts.
Table 16. Desired Size of the Business in Five Years by Gender.
How Large the Business
will be in Five Years
Male
Female
Total
Number
Number
Number
14 employees
510 employees
1120 employees
Over 20 employees
169
90
24
19
302
56.0
29.8
7.9
6.3
100
130
55
11
10
206
63.1
26.7
5.3
4.9
100
299
145
35
29
508
Pearson Chi-Square
Value
3.127
df
3
Sig.
0.372
%
58.9
28.5
6.9
3.9
0.8
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Access to finance
Regulations and
procedures
Premises
Business
management
skills
Attitude, mindset,
discipline
Experience
Mean
Difference
t-test for
Equality
of Means
df
Sig.
(2-tailed)
Male
Female
4.05
3.87
3.98
3.75
0.07
0.12
0.499
0.911
420.793
423.036
0.618
0.363
3.53
3.48
3.35
3.18
0.18
0.30
1.365
2.215
447.893
456.669
0.173
0.027
3.41
3.26
0.15
1.026
444.254
0.306
3.10
3.40
0.31
2.163
465.588
0.031
122
53
36
37
35
27
235
47
Access
to finance
Regulations
Premises
Skills
Attitude
Experience
Total
Count
22.6
15.3
15.7
14.9
11.5
100.0
20
Carpentry &
Joinery
48
35
43
42
34
256
54
Count
18.8
13.7
16.8
16.4
13.3
100.0
21.1
Electrical
119
80
73
84
90
549
103
Count
21.7
14.6
13.3
15.3
16.4
100.0
18.8
Tailoring
93
83
89
85
69
522
103
Count
17.8
15.9
17.0
16.3
13.2
100.0
19.7
Masonry &
Mechanics
10
8
11
11
11
66
15
Count
15.2
12.1
16.7
16.7
16.7
100.0
22.7
Welding &
Bricklaying
24
17
18
19
15
111
18
Count
21.6
15.3
16.2
17.1
13.5
100.0
16.2
Fabrication
10
9
6
7
4
45
Count
22.2
20.0
13.3
15.6
8.9
100.0
20.0
Printing
357
268
277
283
250
508
312
Count
70.3
52.8
54.5
55.7
49.2
100.0
61.4
Total
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123
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125