Factors Influencing Successful Self-Employment amongst Graduates of Higher Learning Institutions in Tanzania

Abstract

Higher learning institutions in Tanzania have been running entrepreneurship courses either as full courses or as subjects. The aim is partly to make the learner develop an entrepreneurial mind-set and think of starting an income generating activity soon after graduating as a solution towards the growing problem of unemployment. But observation has shown that university graduates don’t seek self employment as their first priority after graduating and instead prefer salaried employment. The purpose of this study therefore was to identify and analyse the factors influencing successful self-employment with the view to suggesting how to improve entrepreneurship training in Tanzania Higher Learning Institutions. The study used quantitative approach in data collection. Thereafter, the Delphi technique was employed for the verification process in order to confirm the findings. The number of respondents who filled the questionnaire during the quantitative data collection process was 357. This was in 7 point Likert scale. In the Delphi technique, 15 experts participated in the interview to validate the empirical quantitative findings. The unit of analysis was graduates of higher learning institutions who went for self-employment after studies and experienced people in the field of entrepreneurship and selfemployment for the Delphi interviews. The findings revealed that Entrepreneurship Theory variables; skills and knowledge have significant relationship with successful self-employment while the findings rejected the influence of competence to successful self-employment. In the Psychological Theory, variables; need for achievement, intention and self-efficacy proved to influence successful self-employment and the research findings rejected personality trait as being able to influence successful self-employment. Referring to the Economic Theory, it was established that the variables opportunity and attitude influence successful self-employment. According to the Sociological Theory, the variable experience proved to influence successful self-employment. In the Cultural Theory, the variables social support and business environment influence successful self-employment while social influence does not have significant relationship with successful self-employment. It is suggested that the rejected variables should be considered for further research. The study makes a number of recommendations to the management of training institutions on how to design a curriculum which enforces entrepreneurship, taking into account psychological, economic, sociologic and cultural factors, with special reference to stimulating the intention of students to become self-employed. In terms of practical implications of the study, emphasis should be on ‘learning by doing’. Policy makers should design policies which support self-employment for graduates in order to address the problem of unemployment.