Determinants of Entrepreneurial Tendencies among Tanzanian University Graduates

Abstract

Entrepreneurship is an essential contributor to innovation and job-creation; it also plays a key role in economic growth. Cognizant of its importance, most governments in the world are encouraging graduates to consider entrepreneurship as an alternative career. Graduates should have reasonably higher entrepreneurial tendencies if they are to benefit from various government initiatives towards entrepreneurship. Prior research has not addressed fully entrepreneurial tendencies of graduates, especially in developing economies like Tanzania where poverty and graduate unemployment are high. This paper presents factors influencing Tanzanian graduates’ entrepreneurial tendencies using the University of Dar-es salaam as a case in point. A cross-sectional design was employed; graduates were sampled using systematic random sampling. A semi structured questionnaire which included the General Enterprising Tendencies Test was applied in gathering information. Data were analyzed using descriptive statistics and the binary logistic regression. Entrepreneurship education, parents’ education and number of children in a family determine entrepreneurial tendencies of Tanzanian graduates. Graduates with training in entrepreneurship and those coming from educated families had greater overall entrepreneurial characteristics, higher achievement motivation, more personal control, risk-taking propensity and greater self-esteem than a comparable cohort. Courses focusing on preparing the future entrepreneur are highly recommended. Higher learning institutions countrywide are urged to establish business incubator programmes in order to tap and develop the entrepreneurial talents at an early stage.