Analysis of socio-cultural factors that affect women owned small scale businesses in Tanzania

The study analyzed socio-cultural factors that affect women owned Small Scale businesses in Tanzania, using a case study of Small Scale Medium Enterprises (SMES) sampled from Dar es Salaam. In order to achieve this goal, three specific objectives were formulated, namely; to find out how small scale business ownership is affected by gender; to identify social cultural factors affecting business ownership by women and lastly to investigate how social cultural factors negatively affecting ownership of business by women could be minimized optimally. A field study was done in three business areas purposively sampled from Dar es Salaam. These were Mwenge, Buguruni and Kariakoo. A total of 60 respondents (most of them business women) participated in the study. The instruments of data collection were mainly structured questionnaires and interview. Qualitative data were analyzed using content analysis while quantitative information were organized and summarized manually and through the help of Statistical Package for Social Sciences (SPSS) computer software. The study found out that one of the factors constraining women from owning small scale businesses is that the society still does not regard them as capable business leaders. Moreover, the study has disclosed that most women do not have business networks. Similarly, women remain constrained by a lack of collateral. Worse still, despite the fact that a woman may be married, this does not guarantee that she will be relatively better positioned to be credit worth. The study concludes that in order to surmount these social cultural hurdles, women need to be more risk takers. Based on the findings of the study, it is also recommended that the business and telecommunication firms found in Tanzania such as the mobile phone companies have to increase efforts in promoting business networks which cater exclusively for women. Besides that, women have to strive to change negative stereotype social cultural beliefs. Apart from that, financial institutions have to minimize barriers and restrictions surrounding entitlements which are imposed on women when applying for loans. Continued educational campaigns to society are also required in order to address unfounded social cultural beliefs which question the ability of women to be regarded as the business leaders.