Determinants of Women-led Small and Medium Enterprises Performance on Textile and Apparel Products in Dar es Salaam
The Role of Regulatory Policy Experience Effect
What is the topic of your research? Why is it important to study the topic?
The study examines determinants of women-led SMEs (WL-SMEs) performance on textile and apparel (T&A) products particularly on tie-dye/batik and vikoi production. The study is an important one intending to enhance women owned SMEs and owner managers of marginalized groups the participation in economic activities thereby fostering resources and capabilities that drive performance and inclusive growth.
The government through the Ministry of Industry, Trade and Investment reviewed the regulatory policy framework to provide a holistic review of the business enabling environment (BEE) in order to improve the business climate in Tanzania. Besides, the government has developed and executed the National Five Year Development Plan from 2016/2017 to 2021 URT (2015) with the aim to ensure that the informal sector has favourable business environment. The attempts to improve informal sector and ensure friendly business environment went hand in hand to undertake different initiatives to catalyze and promote entrepreneurship development.
For instance, it has been acknowledged that Dar es Salaam region had a total of TZS. 52 billion which was issued as financial support to registered women business groups in the year 2018/2019 through community development offices (Lamtey, 2022; Rugeiyam, 2023). In spite of the government support aimed at improving the SMEs sub-sector, WL-SMEs on textile and apparel (T&A) sector has continued to perform inadequately in Dar es salaam region. Majority are still facing a wide range of challenges from a limited to inadequate access of human and financial resources, technology and market information needed for their growth and survival. The study unveils the underlying causes of the problem pertaining to poor performance in the industry among owner-managers, practitioners and thereby suggest the way forward.
What are the key findings or observations of your research?
The research key findings validated important insights based on the managerial capabilities which were not captured in the previous research on tie-dye/batik production in Tanzania. Through data analysis the study findings validated and confirmed the influence of knowledge on WL-SMEs performance on textile and apparel (T&A) products. The study also concluded that Resource-based View (RBV) theory can be moderated by regulatory policy experience effect.
Broadly, the study sought to test Resource-based View (RBV) theory under the context of batik SMEs products in the cloth and garment industry. The study reveals that knowledge is positive significant and related to WL-SMEs performance in the T&A products. Hence, human capital improvement is a crucial determinant for owner-managers’ performance on the industry.
The findings further reveal, knowledge and regulatory policy experience effect have a synergistic influence on ensuring WL-SMEs performance on T&A products. Therefore, RBV plays a major role in strengthening the link between knowledge and WL-SMEs performance.
How can the results of your research be utilized in practice?
The present study has important implications to policy-makers and regulatory bodies which are responsible in drafting the guidelines and designing interventions at the national level to improve women entrepreneurs through entrepreneurship development in order to catalyze and adopt changes in industrial development in Tanzanian context.
The study revealed marketing and managerial skills are significant for WL-SMEs on T&A performance. This implies that owner-managers and other practitioners’ participation in the business exhibitions organized by Government and promoters are more likely to have actual purchase in the future. Therefore, the owner-managers may utilize these opportunities in planning, marketing strategies to promote batik SMEs products in terms of the quality, affordability and accessibility.
Also the study shows complex tax policies and compliance procedures pose a serious challenge to majority of WL-SMEs on T&A products. A review of empirical literature indicate that existing laws and regulations are still a burden to women entrepreneurs; calling for government and regulatory authority bodies to revisit the blueprint through revising tax packages in order to nurture for their growth.
The evidence that knowledge application indicates high impact on the performance in the current study, empowerment programs under the government and NGOs sponsorship should identify competencies which are result oriented to ensure that the content address the specific training needs of owner-managers to enhance WL-SMEs on T&A products.
Entrepreneurial skills and competencies for human capital development calls for the policymakers and educators to raise education quality in such a way competence based should be more emphasized when pursuing formal education. This finding demands the need to adapt the curricula on entrepreneurship to incorporate content that directly addresses the development of entrepreneurial competencies relevant to this context.
These study findings are also important for policymakers to consider a wider scope for WL-SMEs on T&A products into compulsory formalization, for there are wide range of advantages when operating officially such as increased credibility and legitimacy to access government support.
What are the key research methods and materials used in your research?
The study used quantitative methods including review of various empirical literature in order to contextualize the findings. Data were collected using survey and questionnaire. Then analyzed using IBM Statistical Package for Social Scientists (SPSS) version 20 for descriptive and inferential analysis. Covariance-based structural equation modelling (CB-SEM) using SPSS Amos 23 software was used for multivariate analysis as well as confirming the theory and their underlying hypotheses.
The findings are presented in frequency and percentages, measurement models, significant statistics, and descriptive statistics organized from the fourth chapter consisting of main headings and subheadings which test various research hypotheses.
Is there something else about your doctoral dissertation you would like to share in the press release?
Tie-dye/batik products in the T&A industry has emerged among the most lucrative businesses globally. In Tanzania, however, this sector is largely feminized, with the majority of tie-dye/batik SMEs owned by marginalized women. While the business provides vital employment and economic autonomy, many of these women entrepreneurs lack the knowledge, skills, and are aged enough to scale their businesses. Despite the high and growing demand for these products—both locally and internationally—the sector remains underdeveloped. Therefore, there is a pressing need for the government to support WL-SMEs and owner-managers by creating a more enabling environment, offering capacity-building programs, and promoting access to competitive markets to help them expand and sell their products globally.
Contact:
Dr. Veri O. Mganda
Email: veri.mganda@cbe.ac.tz or mgandaveri2@gmail.com