A Study on Individual Factors Influencing Youth Entrepreneurship in Zanzibar, Tanzania

by Said Mohamed Khamis

November 2021

Abstract

Youth entrepreneurship is not only an emerging research area but also an important agenda of development to national governments and international organizations. This study intends to understand individual factors influencing youth entrepreneurship in Zanzibar Tanzania. Youth entrepreneurship is conceptualized through opportunity recognition, resource competence and growth vision. The individual factors are entrepreneurial learning, entrepreneurial networking, entrepreneurial motivation, entrepreneurial self-efficacy, and entrepreneurial mindset.

This study is guided by three major questions; 1) What is the influence of the individual factors on youth entrepreneurship in Zanzibar, Tanzania?2) Which are the most significant factors associated with youth entrepreneurship in Zanzibar, Tanzania? And 3) Does entrepreneurial mindset play a mediating role in the relationship between entrepreneurial learning, self-efficacy, networking, and motivation with youth entrepreneurship? This study goes beyond the understanding of youth’s intention towards entrepreneurship, but exclusively understanding the behaviour of youth in entrepreneurship.

The study therefore is guided by entrepreneurial cognitive theory complemented by human capital theory. This is a quantitative study used questionnaire for data collection from youth who engage in entrepreneurship in Zanzibar, Tanzania. The unity of analysis was individual youth entrepreneurs sampled through stratified sampling technique. The study used a structuring equation modelling (AMOS SEM) whereas a total of 450 respondents were basis of the analysis.

The results revealed that entrepreneurial networking was the first significant factors, followed by entrepreneurial learning, entrepreneurial mindset, and self-efficacy. The study tested mediation role of entrepreneurial mindset and found its mediation effect on relationship of entrepreneurial learning, self-efficacy, and motivation with youth entrepreneurship. In other words, there was no mediation effect of entrepreneurial mindset on the relationship between entrepreneurial networking and youth entrepreneurship. From a practical point of view, this research provides empirical evidence for youth to embrace entrepreneurial learning, extend networks, promote self-efficacy, and have the entrepreneurial mindset necessary for entrepreneurship.

This study also provides a reference for the policy makers to take active measures to encourage the growth and development of entrepreneurial traits among the young generations by instituting entrepreneurship policy and programmes. A timely review into the education system is called to incorporate and inculcate entrepreneurial skills and mindsets for the younger generation.

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