Evaluating the contribution of owner manager’s entrepreneurial characteristics to the financial performance and growth of micro and small enterprises in Tanzania: a case of dairy farming in Tanga and Coastal regions in Tanzania.

This study evaluates the contribution of owner managers’ entrepreneurial characteristics to the financial performance and growth of Micro and Small business Enterprises in Tanzania with main focus on dairy farming sub sector. The study sought to evaluate how external business environment, and more specifically the legal and regulatory framework, communication and infrastructure and training can manipulate individual owner characteristics and eventually affect financial performance and growth of Micro and Small Enterprises in dairy farming. In building the initial model, interpretation, and discussion of the findings, the study employed multiple theoretical approaches that included psychological entrepreneurial theories, social entrepreneurial theories and social learning theories to. However, in order to accomplish the research objectives, the study employed descriptive survey research approach. Research findings revealed that entrepreneurial characteristics in totality explain variation on financial performance by 42.40% and business growth by 41% respectively. Moreover, the findings showed that, out of all entrepreneurial characteristics, only motivation and creativity with innovativeness have significantly positive influence on financial performance. On the other hand, locus of control and perseverance with optimism showed significant positive influence on business growth - meaning that other entrepreneurial characteristics have insignificant influence on the financial performance and business growth. In addition, the study findings revealed variation of 48.3% on 45.4 % on financial performance and business growth, which is associated with external business environment related factors together with entrepreneurial characteristics. This finding suggests an insignificant contribution of external business environment which are legal and regulatory framework, communication and infrastructure and training on manipulating individual owner characteristics towards financial performance and business growth. The study recommends that farmers be organized into active producer cooperative societies that will facilitate training and marketing of their product. The Ministry of Agriculture, Livestock and Fisheries should also form an agency that will focus on handling dairy farming issues, especially those related to controlling competition from imported milk and milk products. Future research should focus on qualitative studies to explain why external environment is not supportive to MSEs.