An Assessment of Reasons; why Graduates Fail to Establish New Entrepreneurial Businesses

Abstract

While we see different higher learning institutions in Tanzania (Mwanza Region) offer a number of entrepreneurship courses, in it the study on how to initiate/establish a new business venture is included. This study focuses on assessing the reasons as to why most graduates fail to establish their own entrepreneurial businesses. A discussion was done with 500 graduates from five different higher learning institutions in Mwanza Region. Among other factors graduates recognized that there are three main factors which hinder them to establish their own businesses, which are lack of capital, poor government support and poor management of fund. Besides that, all respondents agreed the possible remedies towards these challenging factors are deriving business skills from global successful entrepreneurs, partnering with and assistance from other entrepreneurs and the role of government in creating favourable environment for young entrepreneurs to operate. The study also revealed that attending entrepreneurship workshops, seminars and training could be helpful to these graduates since it impart them with potential skills which could enhance success in their established business. This study concluded and recommended that Institutions handling financial aid should pay particular attention to the motives behind setting up a business.