Entrepreneurial motivation in a developing country context: incidents antecedents and consequences of growth-seeking behaviour among Tanzanian owner-managers.
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Date
2001
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Publisher
University of Dar es Salaam
Abstract
This study sought to explore the incidence of growth motivation and analyse its antecedents and firm size consequences in a developing country setting. A conceptual model was tested through a survey of 289 owner-managers in the food processing industry in Tanzania. Results suggest that Tanzanian owner-managers have very low growth motivation. As in some previous studies, level of education and managerial experience were found to be positively related to growth motivation. Also, growth motivation was positively related to actual firm growth. It was observed that those who are in business because of economic necessity have very passive future orientations and that they rarely evolve into serious entrepreneurs desiring substantial growth and pro-actively seeking for it. Subsequently, in-depth case study of five owner-managers were carried out to explore the process through which the rare transition occurs. Results suggest that one who starts business because of economic necessity is neither committed to the business nor the entrepreneurial career. Before he/she can become a pro-active growth seeker, he/she must first stabilise his/her personal life, acquire commitment to the business, stabilise the business and acquire commitment to the career. At the beginning, a favourable external environment is critical for the evolution as it ensures that the owner is able to earn income from the business to stabilise his personal life despite his/her loose commitment. Also, resources that are useful only in the context of the firm and interest in the activity enhances commitment to the business as well as investing in its stabilisation. After stabilising the business and acquiring commitment to the career, it takes a challenge from the external environment to push an owner-manager who started because of economic necessity to start seeking growth. The results point to the need for enhancing growth motivation and in particular the process of evolution from economic necessity to entrepreneurship. The stage reached in the process of evolution can be a useful basis for credit rating. The knowledge can be used for sensitising owner-managers in the process through which they are evolving, thereby accelerating it. Future research should try to explain evolution and determinants of other entrepreneurial qualities.
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Keywords
Entrepreneurship, Business enterprises, Technological innovations, Economic aspects, Tanzania
Citation
Olomi, D. R. (2001). Entrepreneurial motivation in a developing country context: incidents antecedents and consequences of growth-seeking behaviour among Tanzanian owner-managers. Doctoral dissertation, University of Dar es Salaam. Available at (http://41.86.178.3/internetserver3.1.2/search.aspx?formtype=advanced)