In recent years, Tanzania has embarked upon the economic recovery process and is continuing to build upon and address the needs of MSMEs. Key informants from the MIT-SME Section acknowledged the current and future potential of women entrepreneurs and, although seriously under-resourced for the tasks ahead, the SME Section is enthusiastic and committed to working with the international donor community to support this target group. Coordination of all support efforts is crucial. A mechanism for achieving this is recommended – either an officer fully dedicated to the development of women’s enterprise or the establishment of a more formal Office for Women’s Enterprise Development (OWED).
Tanzanian women entrepreneurs need greater access to affordable technical and entrepreneurship training. In cases where the focus is on technical training along sector lines (e.g., food processing, soap-making), more entrepreneurship and business management skills training need to be provided. Market needs and exposure to broader trading areas must be addressed.
For women engaged in cooperative initiatives in rural areas, exposure to similar activity practices (e.g. the “cottage industry” model) in other countries would help to introduce product development ideas and expose them to good production and marketing practices.
Women in both rural and urban areas need more consistent access to training opportunities and to a wider range of business development services (BDS).
Younger women are reported to have an interest in more innovative economic activities, and this should be encouraged by way of exposure, education, technical training and business support, perhaps supplemented by small business and technology incubators.
For the benefit of women already operating enterprises that have growth potential, the removal of financial constraints by way of a loan guarantee programme is essential.
In addition, the bureaucratic barriers to formalizing an enterprise must be modified and made more user and growth-friendly. Otherwise many MSEs operating in the informal economy will be prevented from making the transition to formalization and achieving growth. Improving the availability of proper business premises and marketing outlets will help women increase production and sales.
Measures are needed to encourage the formation of more WEAs and to engage these associations in membership growth. More value-added BDS and other information services must be made available to members. Working with individual WEAs to form a national alliance would give a stronger voice to the needs and concerns of women-owned MSEs and help raise the profile of women entrepreneurs among governments, lending institutions and community-support organizations.
Finally, the creation of a favourable entrepreneurial environment for women entrepreneurs is extremely important. In addition to stronger promotion of women entrepreneurs, this may require changes in some of the laws and cultural practices that discriminate against women or deny them equal rights and opportunities. In addition, there is a great need for gender mainstreaming initiatives in the public and private sector, as they affect women’s enterprise development.
Few women expand their enterprises – this issue has lacked both attention and support. The recommendations in this country chapter are designed to address some of the major gaps in the support environment for growth-oriented women entrepreneurs in Tanzania.
To learn more about this author, visit International Labour Organization's Website.
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