Abstract
In recent decades, there has been a shift in entrepreneurship theory and practice from viewing entrepreneurs as ‘interdependent’ and rooted in social networks. This study discusses the resources and benefits for participating in social networks among small scale women entrepreneurs in Mwanza City in Tanzania. The specific objectives of the paper were to (i) identify the categories of social networks and groups of women entrepreneurs (ii) examine the resources needed for participation in social networks and groups and (iii) assess the benefits accrued from social networks and groups by small scale women entrepreneurs in the study area. The paper is based on empirical data collected from 194 small scale women entrepreneurs in Mkuyuni and Kirumba wards in Mwanza City, using a questionnaire survey, semi-structured interviews and documentary review. The study found that small scale women entrepreneurs are embedded in different types of social networks, which they rely on for their entrepreneurial activities. In order to become members and to actively participate in these networks and groups, women contributed different resources, including time, money and labour in expectation of reciprocity from other members. Such social networks and groups are important tools for women’s entrepreneurial activities as they enhance their access to financial, human and social resources. While it is important to encourage and mobilize small scale women entrepreneurs to establish groups, such efforts should also take into consideration the costs and benefits for women’s participation in the groups.
Highlights
Women entrepreneurs are increasingly recognized across the world for their important contributions to their countries' economic well-being
As elsewhere, women’s businesses tend to be smaller, have fewer employees and bleaker growth prospects than those owned and managed by their male counterparts (World Bank, 2007). To address these constraints and gain access to the different resources required for their entrepreneurial activities, most women entrepreneurs tend to use social networks
The paper contributes to entrepreneurship theory from social capital and gender perspectives by providing empirical evidence to explain the resources and benefits of social networks in women’s entrepreneurial activities
Summary
Women entrepreneurs are increasingly recognized across the world for their important contributions to their countries' economic well-being. As elsewhere, women’s businesses tend to be smaller, have fewer employees and bleaker growth prospects than those owned and managed by their male counterparts (World Bank, 2007) To address these constraints and gain access to the different resources required for their entrepreneurial activities, most women entrepreneurs tend to use social networks. The paper contributes to entrepreneurship theory from social capital and gender perspectives by providing empirical evidence to explain the resources and benefits of social networks in women’s entrepreneurial activities. Few studies have focused on the resources and benefits for participating in the social networks especially among small scale women entrepreneurs. Assessment of the benefits accrued from social networks and groups was performed using a 3-point Likert scale questions (1 = not at all, 2 = to a small extent, 3 = to a large extent). Qualitative data were subjected to qualitative content analysis so as to interpret and construct meanings from the text
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