The Performance of Subsistence Entrepreneurs in Tanzania’s Informal Economy

Abstract

Many scholars have found difficulties with the applicability of Western entrepreneurship typologies in non-Western contexts. Hence, this paper takes a step back by revealing what does apply as opposed to what does not apply. First, this paper investigates what the performance of entrepreneurs in Tanzania's informal economy consists of. Second, it examines which demographic and social factors predict that performance. Based on a literature review and a pre-study, a main study with questionnaires was completed by 152 informal food vendors —that is, subsistence entrepreneurs, in southern Tanzania. Next, correlation, factor, reliability and regression analyses were performed to test the hypotheses. Based on a factor analysis, a distinction is made between basic performance and advanced performance. The results show that advanced performance is positively influenced by experience and age; but other factors, such as the entrepreneur's gender, education and support from family, have no effect.