Survival, Growth Strategies and Performance of Women Owned Micro and Small Businesses in Tanzania

Abstract

This study examines the impact of survival and growth strategies adopted by the women micro and small business on performance of their enterprises. The data used in this study were obtained through a survey of 221 microcredit borrowers from PRIDE Microfinance program in Tanzania. The study uses logistic regression analysis to analyse the data. Study results have shown that among the growth strategies adopted by the owners, non-separation of business resources from household resources and ownership of multiple enterprises have a positive effect on enterprise profitability, while the use of unpaid family labour has a negative effect on enterprise profitability. Of the studied household and individual level variables, only household income; and business skills had a positive effect on enterprise performance. Taken together, these results suggest that intermingling of household and business resources; and household incomes were more important in the performance of women enterprises that are supported by microcredit.