Rural entrepreneurship in Tanzania: why are micro and small enterprises not creating value in furniture manufacturing industry?

Abstract

This study analyses the reasons of value creation inability of wood furniture manufacturing Micro and Small Enterprises (MSEs) which are in rural areas of Tanzania. The lack of financial capital, lack of appropriate technologies, lack of the market, lack of raw materials, lack of skills and lack of commitments restrains ability of rural MSEs to create value. Legal concerns, suppliers, customers, competitors, middlemen and transport concerns limits the abilities of rural MSEs to create value. Study also shows, the core reasons of value creation inability varies between rural MSEs due varied availability of basic amenities in rural areas. Mvomero district is the study area. This qualitative study has used the multiple-cases research design. Through purposive sampling, the study has used thirty cases. Interviews and observations are data collection methods. The cross-case analysis of cases has been conducted. The holistic analysis of identified reasons of value creation inabilities combined with the characteristics of rural MSEs has been conducted thus provides clear understanding of the ‘restraining situations’ which limits the ability of rural MSEs to create value.

Keywords:

• Rural entrepreneurship
• value creation
• micro and small enterprises
• Tanzania

Disclosure statement

The authors report no conflicts of interest. The authors alone are responsible for the content and writing of this article.