Factors Influencing Business Startups among Senior Entrepreneurs in Mwanza Region, Tanzania

Abstract

Entrepreneurship has become a worldwide phenomenon, and various governments and non-profit organizations continuously develop different programs to encourage business startups by the youth, middle-aged men, and women. However, little emphasis has been put on senior entrepreneurship (senior entrepreneurs) in developing countries where people retire from the formal workforce at the age of 60 years. The study intentionally investigated the elements that affect the initiation of businesses by senior entrepreneurs in Tanzania. The research employed a mixed-method approach, surveyed 224 retirees running their enterprises, and interviewed nine retirees in the Mwanza Region. The study used a self-administered questionnaire and semi-structured interview to collect data from the field. The data from the questionnaire and interview were analyzed using simple descriptive statistics and thematic analysis techniques, respectively. The findings revealed that retirees (senior entrepreneurs) are influenced to start their businesses by five broad factors: financial and human capital, family support, social capital, access to market information, and desire for active social participation. In terms of importance, senior entrepreneurs ranked financial capital as the most influencing factor; next was human capital, followed by family support and social capital, then access information on business opportunities and lastly, desire for active participation in society.

The study recommends that the Tanzanian government, in addition to developing supporting policies on retirees, should run various sensitization campaigns and training programs in entrepreneurship, financial literacy and business management for prospective retirees to encourage them to plan for starting income-generating activities for sustainable livelihood. Further, the study recommends that the government establish support programs as part of a diverse inclusion policy to encourage more seniors to actively participate in the country's social and economic development in retirement age.