An assessment of entrepreneurial activities done around mererani tanzanite mines, determinants and challenges

Abstract

An establishment of Tanzanite mining activity in Mererani has made the area significant for entrepreneurial activities as a result of migration of people from different parts of Tanzania and East Africa who came to work in the mining or to offer services to miners surround the area. Entrepreneurial activities around mines sites has number of advantages such as providing necessary requirements to the people who works in mining pits like, food, clothes, communications equipment, medications and other important services. These activities also are sources of local government revenue as it collects revenue and tariffs from products and services rendered. A study was conducted purposely to understand the nature of entrepreneurial activities done by community surroundings mines, determinants factors influencing the choices of doing entrepreneurial activities around mines and the challenges facing entrepreneurial activities in Mrererani Tanzanite mining sites. A sample of 128 respondents (surrounding communities) were sampled for the study from the sampling frame of 693 community members in Mererani township authority area. Both quantitative and qualitative information were gathered by using interview, observations and review of available documents related to the subject matter. Data were analyzed using descriptive statistics. Findings show that major entrepreneurial activities in the study area is gemstones brokering, followed by restaurants operations. The study also noted that the major challenge was unavailability of minerals which leads to inadequate purchasing power among customers. Other challenges are frequent increase of house rent, and payment of tax. Therefore, the study concludes that entrepreneurial activities in the study area depend on availability of minerals, when there are minerals even the other economic activities increase. This study recommends that the government have to reduce tax from Mererani mines surrounding communities who conduct entrepreneurial activities such as bars and restaurants operations. Also, the government has to give a transitional time for example 3 years for business owners before starting collecting tax.