The 16th Annual McGill International Entrepreneurship Conference: Researching New Frontiers

Mlozi, Kock - International Entrepreneurship in Tourism Industry: Women Perspective in Tanzania

Shogo Mlozi & Sören Kock

Hanken School of Economics, Kauppapuistikko 2, P. O. Box 287, FI-65101, Vaasa, Finland.

Email: [e-mail], [e-mail]; [e-mail]

Introduction

This article aims at exploring women entrepreneurs’ perceptions and interpretations of different aspects of doing business and expanding them in foreign markets. Specifically, the following objective is addressed to achieve the purpose of this article: To identify the push and pull motivation for expanding business to international markets; to study different marketing strategies implemented; to learn different ways of accessing capital/finances for business ventures; to learn business, and social networks formed during operating in foreign markets; and to identify challenges in doing business. The issues covered in this article address internationalization process of service businesses in which theoretical concepts of inward international activities are incorporated. This study focuses only on women entrepreneurs in Tourism industry in Tanzania. This is because tourism is one of the important industries for the country however, its people especially women have not recognized its full potential.

Design/methodology/approach

The paper capitalizes on open-ended interviews with nine women entrepreneurs in tourism industry. A purposeful sample was used for this research. Since the sample for this study was small, a qualitative method with focus on open-ended questions was appropriate. The questions were first sent through email to participants a day prior to interviews. All interviews were conducted by telephone. English was a major language of communication and each interview lasted on average 20-30 minutes. The analysis focused on identifying patterns of agreement in the statements provided, but areas of disagreement were equally noted. Measurements were considered most important when interviewees in the context of the discussions held repeatedly emphasized them. This is consistent with a grounded theory analytical approach as espoused by Glaser and Strauss (1967) with points that participants tended to repeat serving to augment or support particular theoretical insights.

Findings

With regard to participant profile, the women entrepreneurs were drawn from different age groups (e.g., 31 years old to 55 years old). The participants were from different tourism line of businesses (e.g., tour operator, travel agency, exporting traditional attire, arts and crafts, consulting) thus bringing a variety of vantage points and perspectives. Three women were married and had children, other three women were single parents in which both of these categories had caretaker responsibilities and the other three women were not married and had no children. Most of the women entrepreneurs in the sample also had relevant academic qualifications up to degree level and relevant prior work experience.

The analysis and discussion are based on motivations, access to capital/financing, networks, marketing, and challenges. All nine interviewees admitted to have started their business by internationalizing. However that did not stop them to operate in local market.

With regard to motives, the following push motives were stated; issue related to gender discrimination, follow customers (tourists), entrepreneurship flexibility, and poor domestic market. On the other hand, the pull motives mentioned included to become financial stable, to take in different challenges, become innovative and creative

Several women admitted that they used bootstrap financing or internal funding for their business. Bootstrap financing is using your own money to start and get the business going without the help of others. When asked why they preferred bootstrapping, several women argued that it is the most inexpensive method that an entrepreneur can consider when raising capital because it exploits untapped opportunities within your own business by managing the finances better. They also added that bootstrap technique helped them to become more creative in finding ways to increase profit for their businesses. Also helped them to be more confident as they did not have to worry about interest on the borrowed money as other business people do. Although there are few individuals who took loan from the bank for their businesses and these were considered as more risk takers than those who did not consider bank loan for their businesses.

With regarding to marketing, several women entrepreneurs market their business through websites, brochures, direct marketing by opening offices, blogs, and word of mouth. Few women entrepreneurs carry out their marketing by attending different tourism related trade fairs, and conferences. Also use different media such as radio, newspapers, magazines and TV. The later category applies more in domestic market while the former applies more in international markets.

Networking was a new phenomenon to interviewees although benefits of it were well known. Several women entrepreneurs mentioned the following benefits for networking: to become more familiar with other businesses, increase the ability to expand business in new markets, easy to obtain financing, increase profit through selling more, gain and share information and technology, and share risks on specific ventures. On the other hand, the study presents findings of the women entrepreneurs who their businesses were related to other companies. With regard to internationalization, women entrepreneurs argued that they needed both business and social networks for them to be able to go for international markets. More frequent communications with partners were made during tourists’ high season.

Challenges that were mentioned include long hours of work to ensure the business flourishes, marketing and access of information, lack of access to appropriate social/business networks, long government procedure (registration), gender issues, access of capital, business competition, and training.

Implication, Conclusion and Recommendation

The objective of this article was to; identify the push and pull motivation for expanding business to international markets; study different marketing strategies implemented; learn different ways of accessing capital/finances for business ventures; learn business and social networks formed during operating in foreign markets; and identify challenges in doing business. The data from interviews supports the born global theory of business venture. The findings provide some perceptions and interpretations of women entrepreneurs in service industry.

Policy makers and business developer to better understand the challenges facing women entrepreneurs when expanding and operating in foreign market could utilize this research. Likewise, the study would help practitioners to come up with better strategies and policies to support women in achieving their full potential of doing business. This in turn would encourage more women to be self-employed not only in tourism industry but in other industries in the country and elsewhere.

Overall, the paper consists of a compilation of different aspects of doing business in international markets with the aim of further contributing to the body of knowledge in Tanzania about women entrepreneurs. The paper has a specific focus on women entrepreneurs’ in tourism industry located in Dar es Salam, Arusha, and Kilimanjaro regions. These are only few regions in Tanzania however, the findings and lessons of the research are relevant to other regions and industries.

Reference

Glaser, B., and Strauss, A. (1967). Discovery of Grounded Theory: Strategies for Qualitative Research, Aldine, Chicago, I