1. 0
SOKOINE UNIVERSITY OF AGRICULTURE
FACULTY OF FORESTRY AND NATURE CONSERVATION
DEPARTMENT OF WILDLIFE MANAGEMENT:
DEGREE PROGRAMME:BACHELOR OF TOURISM MANAGEMENT
FACTORS THAT HINDER UNIVERSITY GRADUATES FROM BECOMING
ENTREPRENEURS IN THE TOURISM INDUSTRY
A CASE OF MOROGORO MUNICIPALITY.
STUDENTS’ NAME: MSIGWA FENRICK
REGISTRATION NUMBER:BTM/D/11/T/0029
SUPERVISOR; MR. MATHEW LADISLAUS SENGELELA
A SPECIAL PROJECT REPORT SUBMITTED IN PARTIAL FULFILLMENT OF THE
REQUIREMENTS FOR THE DEGREE OF BACHELOR OF TOURISM
MANAGEMENT OF SOKOINE UNIVERSITY OF AGRICULTURE,
MOROGORO- TANZANIA
June, 2014

2. i
Abstract
In Tanzania, despite efforts in teaching entrepreneurship at universities, recent tracer-studies
have reported falling rates of graduate self-employment. Among the factors that contribute to this
decline, the Tanzanian entrepreneurial environment plays an ambivalent role. Based on the
concept of entrepreneurial embeddedness, the personal stories of 30 Tanzanian graduates from
the field of Business and Tourism are explained in this study. The results suggest that
embeddedness in the social environment is not of a singular but of a mixed nature.
The study identified that many graduates wants to become entrepreneurs in the tourism industry
but the environment act as the ambivalent and hindrances towards engaging in the tourism
industry as the entrepreneurs.
On the other hand, however, the lack of start-up capital, Poor government law and policy, Poor
education system, Corruption threat, Taxation system, the issue of trust in business, The issue of
experience and skill, Competition in the business and the issue of licensing and legislation this
discourage graduate to involve in entrepreneurs‟ business ventures based in the tourism industry.
Although current national policies emphasize graduate entrepreneurship, there is a failure to
implement these policies at lower government level. Amidst inflexible higher learning
institutions, educators are challenged to innovative ways in which entrepreneurship courses will
address issues that entrepreneurs face in Tanzania.

3. ii
Declaration of honor
I, Msigwa Fenrick hereby declare to the senate of Sokoine University of Agriculture, Faculty of
Forestry and Nature conservation as well as Department of Wildlife Management that, this
project is my own original work and has not been submitted for a degree in any university of the
same research Furthermore. I declare that I only used those resources that are referenced in the
work. All formulations and concepts taken from printed, verbal or online sources be they word
for word quotations or corresponding in their meaning are quoted according to the rules of good
scientific conduct and are indicated by the text or other forms of detailed references.
I am aware of legal consequences of a false declaration of honor.
1. Student name Msigwa Fenrick
Signature…………………………….Date…………………
2. Supervisor‟s Mr. Mathew Ladislaus Sengelela
Signature…………………………....Date………………..
3. Head of Department Professor Ndibalema N
Signature…………………………….Date………………...
4. Dean‟s of Faculty Professor Ngaga
Signature……………………..Date…………………………….

4. iii
Acknowledgement
First and foremost I thank the Almighty God who was ordering me through all the steps towards
completing this work, it was the tough work but with the help of almighty God I completed this
work and Glory is to him forever.
My sincerely thanks must also go to my supervisory lecture Mr. Mathew Ladislaus Sengelela
from the department of Wildlife Management at Sokoine University of Agriculture, he
encouraged me and give me incisive insights and direction through the entire process. Also much
thanks to the Faculty of Forestry and Nature Conservation who approved my proposal and
allowed me to proceed with the Research.
Also I would like to thanks Dr. Henry Brink from the Frankfurt Zoological society, his attention
to details in research has assisted me in being more disciplined about my work, I don‟t have
many words to say but only I say God bless you.
I strength my thanks to Katharine Ommaney from Delaware State University, I shared the
knowledge in Research and she collected me in a place where there was a mistake especially in
Grammar thus I have to say God bless my sister.
Without forgetting my Brother Dominant Sawe, where he continued to support material and
mentally support towards ensuring that I complete this work.
I heartily thank my parents Mr. Filbert Reuben Msigwa and Mrs. Elina Msigwa, My young
Brothers and Sister named Furahin Msigwa, Raibu Msigwa, Herick Msigwa, Elizabeth Msigwa
and Abeli Msigwa, also my Brother Alex Msigwa for their strong encouragement towards my
studies.
Lastly I thank all graduates who were interviewed concerning my topic of study.
And God bless you all.

5. iv
Table of Contents
Abstract............................................................................................................................................ i
declaration of honour......................................................................................................................ii
Acknowledgement .........................................................................................................................iii
FGD Focus group discussion............................................................................................viii
HESLB Higher Education Students Loan Board...................................................................viii
WTO World Tourism Organization....................................................................................viii
USCF University Christians students fellowship .................................................................viii
CCT Christians councils of Tanzania .................................................................................viii
Dedication...................................................................................................................................... ix
CHAPTER ONE............................................................................................................................. 1
1.0 Introduction............................................................................................................................... 1
1.1 Introduction and Background................................................................................................ 1
1.2 Problem Statement and Justification................................................................................... 1
1.3 Research Objectives .............................................................................................................. 3
1.3.1General objective............................................................................................................. 3
1.3.2 The Specific Objectives.................................................................................................. 3
1.4 Research Questions ............................................................................................................... 3
CHAPTER TWO ............................................................................................................................ 6
2.0 LITERATURE REVIEW ......................................................................................................... 6

6. v
2.1Characteristics or traits of entrepreneurs................................................................................ 6
2.2 Education and entrepreneurship............................................................................................ 9
2.3 Entrepreneurship as a career choice.................................................................................... 10
2.4 Entrepreneurial model......................................................................................................... 11
2.4.1 Pre-Dispositional Factors ............................................................................................. 11
2.4.2 Trigger Factors ............................................................................................................. 11
2.4.3 Possessing a Business Idea........................................................................................... 11
2.5 Entrepreneurial traits........................................................................................................... 12
2.6 Perceived barriers................................................................................................................ 12
2.7 Family influence.................................................................................................................. 13
2.8 Tourism entrepreneurship ................................................................................................... 13
2.9 Factors that can enhance entrepreneurship.......................................................................... 15
2.10 Possible solutions that can help to motivate graduate entrepreneurs................................ 15
CHAPTER THREE ...................................................................................................................... 17
3.0 RESEARCH METHODOLOGY............................................................................................ 17
3.1 Study area............................................................................................................................ 17
3.2 Structure of the Study.......................................................................................................... 18
3.3 Data Collection Techniques ................................................................................................ 19
3.4 Sampling Techniques .......................................................................................................... 19
3.5 Sample Size......................................................................................................................... 19
3.6 Method of Data Collection.................................................................................................. 19

7. vi
3.6.1 Focus group discussion................................................................................................. 19
3.6.2 Qualitative Interviews................................................................................................... 19
3.7 Method of Data Analysis .................................................................................................... 20
3.8 Schedules............................................................................................................................. 20
CHAPTER FOUR......................................................................................................................... 21
4.0 RESULTS AND DISCUSSION............................................................................................. 21
4.1Introduction for Analysis of the results................................................................................ 21
4.2Graduates occupation........................................................................................................... 23
4.2.1Agricultural.................................................................................................................... 23
4.2.2 Entrepreneurship........................................................................................................... 24
4.2.4 Volunteers..................................................................................................................... 24
4.4 Existing tourism opportunities. ........................................................................................... 24
4.4.1 Natural attraction and protected areas .......................................................................... 24
4.4.2 Accommodation opportunities......................................................................................... 25
4.4.3 Transport opportunities................................................................................................. 25
4.4 Factors that hinder University graduates from becoming entrepreneurs in the tourism
industry...................................................................................................................................... 26
4.4.0 Discussion and Graph description.................................................................................... 27
4.3.1 Capital........................................................................................................................... 27
4.3.2 Trustful in business....................................................................................................... 28
4.3.3 Education system.......................................................................................................... 29

8. vii
4.3.4 Corruption..................................................................................................................... 29
4.3.5 Strictly or Restriction to licenses and registration........................................................ 30
4.3.6 Competition and social legitimacy ............................................................................... 30
4.3.7 Experience and Skills ................................................................................................... 31
4.3.8 Government policy and law.......................................................................................... 31
CHAPTER FIVE .......................................................................................................................... 32
5.0 CONCLUSION AND RECOMMENDATIONS................................................................ 32
5.1 Conclusion........................................................................................................................... 32
5.2 Recommendations............................................................................................................... 33
References..................................................................................................................................... 35
Appendices.................................................................................................................................... 37
Appendix 1:............................................................................................................................... 38
Research Questions ................................................................................................................... 38

9. viii
LIST OF ABBREVEIATIONS
FGD Focus group discussion
HESLB Higher Education Students Loan Board
WTO World Tourism Organization
USCF University Christians students fellowship
CCT Christians councils of Tanzania

10. ix
DEDICATION
I dedicate this work to beloved parent Mr.Filbert Msigwa and Mrs Elina Msigwa

11. 1
CHAPTER ONE
1.0 INTRODUCTION
1.1 Introduction and Background
In general tourism comprises „the activities of persons travelling to and staying in the place
outside their usual environment for not more than one consecutive year and not less than twelve
hours for business, leisure and other purposes (WTO, 2009). Tourism is recognized as a major
source of economic growth especially in poor countries. Tourism has become a significant
industry in both poor and rich economies because of its important impacts on economic,
livelihoods and socio-cultural development (Shah 2000).Tourism is seen as a vital industry in
terms of job creation, poverty alleviation and foreign exchange earnings.
The investment part of the national tourism policy of Tanzania (1999) states that Tanzania has to
strive to attract both local and international tourists and create conducive investment climate one
capable of attracting both local and foreign investment. Also the policy states to provide the
mechanisms for micro-financing and providing technical assistance to small enterprises engaged
in the production of tourism products in order to improve efficiency and quality. The policy
continue to explains that priority should be given to such small enterprises that are owned and
managed by local entrepreneurs, local communities, women and youth (National Tourism policy,
1999).
Healy (1994) describes how local people can operate in or be employed in establishments
providing lodging, food and services to the tourists. To date however such local participation has
been primarily in the field of employment rather than entrepreneurship, due to constraints of
capital, education, language and skills. Furthermore the nature of employment of local people
tends to be low skilled, poorly paid and often seasonal in character. The higher status, better paid
jobs, particularly managerial positions, tends to be occupied by people from outside the area.
1.2 Problem Statement and Justification
Entrepreneurship in the tourism industry in Tanzania is the problem when it is compared with
other economic sectors of the country. For example, in the agriculture sector many graduates

12. 2
have access to entrepreneurship opportunities recent graduates have launched milling ventures,
farms and plantations. However in the tourism sector, few graduates have launched ventures and
many graduates end up working in the fields other than their chosen one (Mwaswalwiba, E, E et
al 2012).
It is therefore important to identify the factors limiting the entrepreneurship of many graduates,
especially those who are completing their studies that relate to the tourism industry. Here i speak
to those students studying the tourism management course, wildlife management course, hotel
management course and many others of the related course.
It is argued that, poverty may be reduced as tourism creates new employment opportunities and
income generating activities (Shitundu and Luvanga, 2003). In Tanzania very few studies have
been conducted to asses factors that limit university graduates from becoming entrepreneurs, and
when we speak to the tourism sector it seems to be the very big problems since there are no such
study that is conducted and the only study conducted to the large extent is in other sectors of the
economy like Agriculture sectors , Information and technology sector and many other sectors
apart from the tourism sector , this is where at least the research have been conducted to assess
how the university graduates get involved in the entrepreneurship.
Tourism entrepreneurship to the university graduates is one of the important potential areas
which are not yet covered by many researchers and there is not enough literature reviewing and
explaining tourism entrepreneurship to the university graduates students (Remington, M 2011).
Thus, there is a need for the research that will be covering the important areas so that it can act as
a model to change the mind of the university graduates who are interested in investing in the
tourism sector both in the country and the whole world.
The study was carried out within the Morogoro Municipality where by those graduates
completed their degree in the courses that is related with the tourism management were
interviewed accordingly so as to know the facts of graduates‟ entrepreneurship in the tourism
industry.

13. 3
The relevance of the study is that it provides information that encourages the university
graduates to get involved in the tourism entrepreneurship in Tanzania and the whole world at
large.
This information collected is essentially potential for use by both the government and non-
government organizations dealing with entrepreneurship activities also other tourism
stakeholders can use the information from this research if they are interested for further
improvement of the tourism industry sector in Tanzania and in other countries of the world and
hence generally improve the good economic status of the sector and derive big development
from the tourism sector in the country and the world at large.
Again the study can open further ideas and research concerning the university graduates who are
posing a challenge to the government due to the high level of unemployment. Thisresearch also
provides source material for ongoing research in the area of graduate employment and to some
extent it open the mindset to the concerned people on how the can curb down the threat of
unemployment to the country particularly to the graduates.
1.3 Research Objectives
1.3.1General objective
The main objectives of the study were to asses and evaluate the factors that limit university
graduate from becoming entrepreneurs in the tourism industry.
1.3.2 The Specific Objectives
Specifically the study attempts was to
i. Asses the challenges facing the university graduates who have been investing in the
tourism sector.
ii. To assess if educational styles arouse interest of students in the industries of their
discipline.
iii. To assess the action of the governments taken towards promoting university graduates
student to become the tourism entrepreneurs in the tourism industry.
1.4 Research Questions
i. How is university graduates get involved in tourism entrepreneurship?

14. 4
ii. What does the government policy of Tanzania say about investing in the tourism industry
especially to those graduates who are fresh from the school?
iii. How can the university graduates be motivated to become entrepreneurs in the tourism
industry?

15. 5

16. 6
CHAPTER TWO
2.0 LITERATURE REVIEW
Entrepreneurship is recognized both nationally and internationally as a key driver of growth
(Fitzsimons and O‟Gorman, 2003; Commission of the European Communities, 2004), with
future prosperity depending on the creation of indigenous businesses (Orhan and Scott, 2001).
Martin and Laing (1998) believed that a country‟s future economic development is dependent
upon increasing its growing entrepreneurial talent. Morrison (1998) agreed with this, proposing
that the successful entrepreneur is the “first among equals in the process of wealth creation”
(Morrison, 1998, p.177).
It is difficult to get agreement among researchers and writers as to who exactly are these
entrepreneurs (Carson, Cromie, McGowan and Hill, 1995). They have been described as the new
heroes of our society (Donckels and Meittinen, 1990), who possess characteristics, which are
highly prized in a culture (Hofstede, 1991). Garavan, O‟Cinneide, Fleming, McCarthy and
Downey (1997) and Inman (2000) went back to the word entrepreneur to find a definition, citing
an Irish economist, Cantillion (1755) who identified the entrepreneur as a pivotal figure in the
economy, a risk taker, taking chances and facing uncertainty thus defining entrepreneurship as
self-employment of any sort. Schumpeter (1934) expanded on this concept by introducing
innovation as a determinant to entrepreneurship saying that entrepreneurs are people who
introduce new combinations of factors of production, notably labour and capital. Therefore it can
be deduced from the literature that entrepreneurs are clearly self-reliant people and their
ambition is undoubtedly to create a business of their own (Johannison, 1990). Morrison,
Rimmington and Williams (1999) came to the general conclusion that there are as many
definitions of an entrepreneur as there are many entrepreneurs.
2.1Characteristics or traits of entrepreneurs
Due to the difficulty in coming to a universally acceptable definition of the entrepreneur,
researchers have attempted to distinguish different factors that influence the individual towards
entrepreneurship (Dyer, 1994). Efforts have been made to identify some of the characteristics or
attributes possessed by the entrepreneur (Kao, 1990), and this is often referred to as the trait
school of thought. Carson et al (1995) believed that entrepreneurial traits distinguish

17. 7
entrepreneurs from other groups in society. Delmar (2000) identified the most common of these
traits as a need for achievement, internal locus of control, risk-taking propensity, and tolerance
for ambiguity, over-optimism and the need for autonomy. These characteristics and traits have
been acknowledged by many authors and are seen as an important factor when calculating a
person‟s propensity towards entrepreneurship (McClelland, 1961; Scott and Twomey, 1988;
Gibb, 1990;Morrison, Chell, Hawthorn and Brearly, 1991; Carson et al, 1995;Garavan et al,
1997 ; Morrison, 1998; Rimmington and Williams, 2000). Gases (1990) also believed
motivation, energy and perseverance are important traits, withPlaschka (1990) including
innovation as an important characteristic of the entrepreneur. McCarthy (2000) found risk-taking
propensity to be associated with personality traits, subsequently arguing that research on traits is
of extreme importance in any serious attempt to understand entrepreneurship. However, despite
this, Delmar (2000) argued that with the exception of the need for achievement, it has been
difficult to link any specific traits to entrepreneurial behaviour.
While most researchers see entrepreneurial behaviour as the result of positive characteristics,
Kets de Vries (1977) takes the opposite view point, claiming that entrepreneurial behaviour is the
result of negative characteristics. He sees the entrepreneur as an anxious individual, badly
organized, who does not conform to the social norm and suffers from low esteem. However,
academicians are generally uncomfortable with this model, as it reduces our understanding of the
entrepreneur to a deviant, who is misfit in conventional organizational life (Morrison et al,
2000p.39).
The importance of examining entrepreneurial traits and characteristics in relation to the current
research is to help establish the basic characteristics associated with the entrepreneur. However,
not everyone agreed with the trait school of thought. Carson et al (1995) found four main
criticisms of the trait approach: first, the inability to differentiate clearly between entrepreneurial
small business owners and equally successful professional executives. Second, the assumption
that by identifying the supposed key trait or characteristic of the entrepreneur, you can identify
the entrepreneurial personality. Third, the lack of recognition of entrepreneurship as a
continuously changing process in which the entrepreneur will also change. Finally, the lack of
empirical evidence to connect entrepreneurial characteristics with actual entrepreneurial activity
and the inability to acknowledge an individual‟s situation and the effect it has on new venture

18. 8
creation. Basically, the trait approach cannot be used alone to explain entrepreneurial behaviour.
Therefore, there is a need to look at what entrepreneurs do and why they do it (Martin et al,
1998).
Current researchers are increasingly trying to understand how entrepreneurs perform and why
some engage in entrepreneurial behaviour and others do not (Delmar, 2000). The socialization
process is one such area of study, and is often referred to as social learning theory. This school of
thought tries to establish what influences such factor as an interaction with the environment,
dealing with life experiences and social relationships have on forming our attitudes and values
and therefore influencing our behaviour (Morrison et al, 2000). Social learning theory, while
acknowledging the genetic influence on personality traits, emphasises the importance of each
individual‟s personal situation and the influence the environment has on the individual and, in
turn, the influence the individual has on the environment (Garavan et al, 1997). Consequently,
social learning theory recognises the influence that society has on encouraging entrepreneurship
(Morrison, 1998).
Carson et al (1995) see the entrepreneur as being embedded in a complex set of social networks
that will either facilitate or hinder the potential of the individual to enter into entrepreneurship.
Examples include family and social background, education, religion, culture, work and general
life experiences. Morrison, Rimmington and Williams (2000) further expanded on these social
influences by adding availability of appropriate role models, career experience ranging over the
complete life-cycle, deprived social upbringing, sibling order within the family, entrepreneurial
family background, level of educational attainment, negative and positive peer influence,
position in society and being uncomfortable with large bureaucratic organisations.These
influential factors are often referred to in entrepreneurial literature as antecedent influences, and
can have an impact on a person‟s motivation, perception, skills and knowledge.
According to Scott et al (1988) and Plaschka (1990) those who want to own their own business
are usually more likely to have parents as role models. Rosa (1993) and Morrison (1990) agreed
with this, believing family play a significant role in helping new entrepreneurs with opportunities
and resources such as finance and business contacts. Garavan et al (1997) further acknowledge
the importance of parents to entrepreneurship, believing parents are the primary role models in
the development of entrepreneurial personality and future career attitude. The importance of

19. 9
others was also noted by Curran (1996) as cited by Henderson and Robertson (2000) who found
the attitude of family, friends, and neighbours are an essential influence on the young student
when forming an attitude or perception. Phan, Wong and Wang (2002) agreed with this, finding
attitude to be of extreme importance in the encouragement of entrepreneurship, arguing that
educational effort should be made to develop the right attitudes and motivations towards
entrepreneurship.
Dyer (1994) found working for an entrepreneur or knowing an entrepreneur had a positive
impact on entrepreneurial career choice. Matthews and Moser (1995) found work experience an
important factor in the encouragement of entrepreneurial activity, especially in small businesses.
Madsen, Neergaard and Ulhoi (2003) agreed with this, recognising the importance of work
experience in the development of a business idea. It is suggested by Carter and Cachon (1988),
as cited by Morrison (1998), that entrepreneurs often share common features and experiences of
a social context, which distinguish them from other individuals. Nevertheless, there is a need to
recognise the heterogeneous and diverse nature of entrepreneurship (Carson et al, 1995).
Especially, as much of the knowledge about entrepreneurship is based on studies of the male
entrepreneur (Brush, 1992).
As the current research involves female undergraduates, it is necessary therefore, to look at the
female entrepreneur. Female entrepreneurial activity in most of the developed countries of the
world is significantly lower than their male counterparts, even though it is argued they are
influenced by many of the same factors (Minnitti, Arenius and Langowiz, 2004).
2.2 Education and entrepreneurship
Matthews et al (1995) acknowledged the significance of education and the part it plays in
entrepreneurial activity, stating that it is critical to attract the young and educated to
entrepreneurship, especially as current industrial trends are towards a knowledge-based
environment (Henderson and Robertson 2000; Postigo, Lacobucci, and Tamborini, 2006). Thus,
higher education provides the skills required for the formation of firms within these knowledge-
based industries (Fletcher, 1999). Furthermore, Scott et al (1988) observed that undergraduate
students, with the assistance of an entrepreneurial education strategy, could be helped to consider
entrepreneurship as a career. Carter et al (1999) and Gibb (1996) agreed with the importance of
education to entrepreneurship, believing that ambitious, educated, young people can be equally

20. 10
encouraged into new venture creation as opposed to a large organization, especially as the long-
term supply of well-educated and qualified entrepreneurs is essential to a strong modern society
(Scott et al, 1988).
Researchers have recognized that young people, parents or teachers did not consider
entrepreneurship a serious occupational choice in the 1950s, 1960s, and 1970s (Blackburn et al,
1993). More recent research would appear to further substantiate these findings with little done
to prepare students for self-employment (Klapper, 2004), as University Career Centers tend to
provide information about large organizations therefore, promoting a large firm culture
(Henderson and Robertson, 1999; Oakey, Mukhtar and Kipling, 2002). Large firm culture
according to Vickery, Pilkington and Read (1990) and Henderson et al (1999) demoralizes and
actually inhibits the entrepreneurial spirit and encourages the majority of students to plan to work
for someone else.
Paradoxically, Vickery et al (1990) countered these arguments by quoting the six fold increase in
annual new business registrations in the USA in one generation stating this would seem to
correlate better with the boom in secondary and higher education than with a major personality
change. However, Wang and Wong (2004) in contrast suggested that education might be a
deterrent to entrepreneurship as honors students show less interest in starting their own business,
speculating that a longer time spent in education assimilating more business knowledge does not
necessarily lead to higher interest in entrepreneurship.
2.3 Entrepreneurship as a career choice
Without doubt the choice of career for the undergraduate can be a complex and difficult process,
with this decision-making process becoming even more intricate when the career path chosen is
that of starting your own business (Nabi et al, 2006). This can lead to entrepreneurship not
readily being considered as a career choice (Henderson et al, 2000). Despite this, Wang et al
(2004) acknowledged that undergraduates show a high level of interest in entrepreneurship, as a
career. Brindley and Richie (2000) and Oakey et al (2002) found that up to seventeen percent of
undergraduates have aspirations to start their own business. Robertson, Price and Wilkinson
(2004) as cited by Nabi et al (2006) found in their study of 3,500 English university students that
nearly fifty percent of the students surveyed intended to enter self-employment within five years
of graduation. However, a study by Galloway (2005) carried out on students from four Scottish

21. 11
universities who had an entrepreneurial module included in their course; found that only a
quarter of the students are likely to become business owners within the short term (five years).
Notably, from an Irish point of view, this appeal of entrepreneurship as a career was also found
in a study performed by Goodbody (2002) in which just over fifty percent of the undergraduates
surveyed indicated, if given the option, they would prefer to be self-employed rather than work
for someone else. These students also cited being their own boss, personal satisfaction, making
their name, having control and a supportive policy environment for entrepreneurship as their
main motivational factors.
2.4 Entrepreneurial model
Interestingly, for the present research, Nabi, Holden and Walmsley (2006) noted the lack of
academic research on what initiates the journey from undergraduate to business owner. Lack of
research concerning students and young adults‟ perceptions of entrepreneurship has periodically
been acknowledged within entrepreneurial literature (Scott et al, 1988; Blackburn and Curran,
1993; Henderson et al, 2000). Scott et al (1988), recognizing the particular difficulties
surrounding undergraduates and their entry into entrepreneurship designed an entrepreneurial
model suggesting the main variables that influence students towards entrepreneurship. These
variables are presented as follows:
2.4.1 Pre-Dispositional Factors
These include an individual‟s personality traits, antecedent influences with a particular emphasis
on family role models and relevant work experience, confidence in one‟s own abilities and a
preference to work in the SMEs sector.
2.4.2 Trigger Factors
These depend on the individual situation, and include the effects of looking for work, availability
of career guidance and the prospect of being unemployed.
2.4.3 Possessing a Business Idea
This is considered the main factor in choosing entrepreneurship as a career. Although the
previous factors are important in encourage entrepreneurial activity and may help in prompting a
business idea, possessing a business idea alone may inspire new venture creation and is seen as
an independent pull into entrepreneurship. Wong et al (2002) and Phan, Wong, and Wang (2002)

22. 12
agree with Scott et al (1988) that having a business idea is a vital trigger factor when considering
entrepreneurship. Madsen et al (2003) are in agreement with this. However, they also agree with
the importance of work experience and its help in developing a business idea.
2.5 Entrepreneurial traits
A feature of particular interest to this research is recognised by Oakey et al (2002) and Gurol and
Atsan (2006) who ascertain that students expressing an interest in entrepreneurship display a
high level of entrepreneurial characteristics, which they see as a positive factor for undergraduate
entrepreneurship. However, undergraduate students who do not believe they have the traits
necessary may self-select themselves out of entrepreneurship (Robertson, Collins, Medeira and
Slater 2003). This was further substantiated by Postigo et al (2006) who found that
undergraduates see entrepreneurs as people with specific personal attributes.
Louw, Van Eeden, and Bosch (2003) claim the age of the undergraduate plays a significant role
in how students perceive their own entrepreneurial qualities finding the older the undergraduate
the higher they assessed their level of entrepreneurial traits. Eeden Van, Louw and Venter
(2005), while recognising the importance of entrepreneurial traits, also believed that these traits
can be acquired through education, life experience and the entrepreneurial process. Interestingly,
Scott et al (1988) noted undergraduate students who came from an entrepreneurial family
background were more likely to believe they had entrepreneurial characteristics than students
that did not come from an entrepreneurial family.
2.6 Perceived barriers
Financial risk is considered a major barrier to starting your own business with over fifty percent
of university students in a study conducted by Robertson et al (2003) stating it as a problem.
However, they claimed it was not fear of failure as in social embarrassment but the need for
security, with many respondents citing having to pay back a student loan as a difficulty.
Goodbody (2002) found fear of failure along with bankruptcy, the hard work involved, a small
Irish market, difficulties accessing finance and lack of business information as undergraduate‟s
main barriers to starting a business. Wang et al (2004) agreed with the fear of failure but added
inadequate preparation and insufficient business knowledge to the list of perceived barriers. Lack
of a business idea is also perceived as a barrier throughout literature on student entrepreneurship
(Carter et al, 1999; Klapper, 2004), with Robertson et al (2003) finding twenty-two percent of

23. 13
students citing the lack of a business idea as a reason for not starting a business. Interestingly,
Oakey et al (2002) noted that if a network of support systems were put in place to assist when
starting a business, the undergraduates that had previously dismissed the idea of entrepreneurship
as a career said they would reconsider entrepreneurship as a career option.
2.7 Family influence
Oakey et al (2002) and Wang et al (2004) found that the lack of information on entrepreneurship
to be a problem for the undergraduate, noting, students coming from a family with no
entrepreneurial background are perceived as being at a considerable disadvantage having less
access to relevant information. Scott et al (1988) also believed family background to be
important in finding undergraduate students coming from a family involved in entrepreneurship
have a higher preference to own their own business than undergraduates from a family with no
entrepreneurial background. In a cross country study carried out on Italian and Argentinean
undergraduate students, it was established that an entrepreneurial family background has a bigger
impact on the propensity towards starting your own business than individual factors within a
country (Postigo et al, 2006). Scott et al (1988) suggested this influence is two-fold both as a role
model and resource provider.
Having looked at the role of education and the undergraduate in relation to entrepreneurship, the
final section of the literature review examines the some reasons why university graduates are not
engaging in the tourism entrepreneurship.
2.8 Tourism entrepreneurship
Tourism entrepreneurship is defined by Koh (1996) and Saayman (1997) as activities related to
creating and operating a legal tourist‟s enterprise. Legal enterprises refer to those businesses that
operate on a profitable basis obeying the legal requirements of the country and seek to satisfy the
needs of tourists and visitors. These enterprises include, among others, hotels, guest houses,
travel agencies and tour operators. This means that persons who hawk goods or services, such as
arts and crafts, to tourists are also tourism entrepreneurs, but are more often referred to as street
vendors (Koh, 1996).

24. 14
Excellent opportunities exist for entrepreneurs in the accommodation sector of the tourism
industry, especially in the development and operation of camping grounds, game parks, holiday
camps, hotels, motels, bed-and breakfast establishments and guest houses. (Saayman, 1998)
Opportunities in transport for the potential entrepreneur are mostly in terms of taxis, car hire,
boat trips, bus services and air transport like coastal aviation, precision air, Fox safaris in
Tanzania. The entrepreneur can package tours and then make use of other entrepreneurs for
rendering support services such as transporting people. (Saayman, 1998).
There are also opportunities in the development of man-made attractions, for example
monuments, theme parks, waterfront developments, zoos, parks, game reserves, arts and crafts
galleries and cultural tourism, which includes cultural villages. Support services, such as catering
and tour guides, marketing and training, could also offer good opportunities for entrepreneurs
(Saayman, 1994). The fields of entertainment, restaurants, coffee shops, acting, traditional
dancing and music represent only a few of the many opportunities (Saayman and Swart, 1996).
Entrepreneur is the innovating individual who has developed an ongoing business activity where
none existed before. Meredith (1983) defined an entrepreneur as a person or persons who
possesses the ability to recognize and evaluate business opportunities, assemble the necessary
resources to take advantage of them and take appropriate action to ensure success.
Entrepreneurship pertains to the actions of a risk taker, a creative venture into new business or
the one who revives an existing business (Hébert et. al., 1989). According to Audretsch and
Keilbach (2005) entrepreneurship is consisting of two main criteria; The first criteria involves
the state of knowledge and is the ability of economic agents to recognize economic opportunities
that can only or best be realized through the creation of a new enterprise. The second involves
economic behavior and specifically the creation of a new enterprise to appropriate the economic
value of that knowledge.
Entrepreneurship is widely viewed as a crucial mechanism for economic development offering
employment, innovation and welfare by means of hard work, creativity and risk taking (Acs,
Desai and Hessels, 2008)
Bull and Willard (1993) adopted Schumpeter‟s approach developed in the 1930s, focusing on the
entrepreneur as an innovator who causes discontinuity through shaking up the established ways

25. 15
of doing things. A consequence of this approach is that entrepreneurship can be viewed as an
activity with applications in many areas of society, not just business (Drucker,1985). Entre-
preneurs can therefore be considered as those who are key in creating new value, either in the
form of a new venture, or by bringing about significantly changed ways of doing things Bruyat
and Julian (2000).
Entrepreneurs are people who constantly discover new markets and try to figure out how to
supply those markets efficiently and make a profit. She/he is a person that searches for change,
responds to change, and exploits change by converting change into business opportunity. For
entrepreneurship to be successful, participants must have the ability to identify and act on
favorable opportunities.
2.9 Factors that can enhance entrepreneurship
According to Deller, (2002) entrepreneurship goals can be achieved through the following
factors;
Finance: A problem linked to finance is one of the principal factors that hinder entrepreneurship
in a place. The availability of early-stage finance, either from informal sources such as
individuals or formal sources such as venture capital funds can be helpful in startup capital
Education: Education plays a vital role in entrepreneurship. Providing individuals with quality
entrepreneurship education is one of the aspects that can provide local people with basic
knowledge about entrepreneurship and also it can motivate them to be involved.
Fundamentals: Deller,(2002) argued that policies geared toward boosting entrepreneurial activity
should not be confined to the entrepreneurship sector per se but also extended to the macro-
economic fundamentals of the country like markets, competition and regulation.
Social Legitimacy: The perceived social legitimacy of entrepreneurship is also another factor.
For example the extent to which fear of failure acts as a barrier to starting a new firm.
2.10 Possible solutions that can help to motivate graduate entrepreneurs.
The following possible solutions might be of help in order to create an enabling environment to
the university graduate in entrepreneurships development.
Training: There should be a Centre that will be based on training that could provide
entrepreneurs in tourism with basic knowledge about tourism entrepreneurship. It can assist in

26. 16
the development of business plans and the acquiring of funds to implement a program and
monitor success/failure.
Capital: An entrepreneur needs capital or financing in order to start a business or an organization.
For business entrepreneurs and social entrepreneurs, finding start-up capital remains a major
problem (Saayman, 1998). Specific fund allocations should be made to enhance entrepreneurship
development in tourism.
Appropriate Taxes: Entrepreneurs need tax incentives to start a successful business. Therefore
they should be exempted from tax, up to a certain level and be gradually upgraded to the
maximum rate (Saayman, 1998).
Positive government policy: Government policy is very important aspect that can motivate
university graduate entrepreneurs to invest in the tourism sector. The government can support the
university graduates entrepreneurs through provision of capital, tax reduction, and the training
provision.

27. 17
CHAPTER THREE
3.0 RESEARCH METHODOLOGY
3.1 Study Area
Morogoro municipality is one of the town and headquarter of Morogoro region, The Region lies
between Latitude 5 0
58” and 10 0
0” South of the Equator and Longitude 35 0
25” and 30 0
30”
to the East. Morogoro municipality is about 200 kilometers west of Dar es Salaam business
center. Its climate is highly influenced by the Indian Ocean. The Nguru, Uluguru and Udzungwa
Mountains as well as the Mahenge Hills found in the Region form part of the Eastern Arc
Mountains. The municipal takes a total of 602114 population size due to the national censer
statistics of 2012.

28. 18
3.2 Structure of the Study
The study follows the following working steps as illustrated below.
Figure 1: A Figure showing study working steps
Source: Author field data, (2014)
SIGHT SELECTION
FIELD WORK
RESULTS AND DISCUSSION
CONCLUSION AND RECOMENDATIONS
SAMPLE SELECTION
ADMINSTERING
QUESTIONNARE
FOCUS GROUP
DISCUSSION
DATA ANALYSIS
QUESTIONNARE
DISIGN
LITERATURE REVIEW

29. 19
3.3 Data Collection Techniques
This study started by developing research title idea and I developed a concrete research problem
and formulated objectives and continued with development of the proposal. I reviewed a number
of literatures to gain a good touch of tourism entrepreneurship issues that I have been interested
to work on. It was followed by developing a survey questionnaire which was reviewed my
supervisor.
3.4 Sampling Techniques
The study used purposive sampling techniques where by some graduates that have completed
their degree related with the tourism were interviewed concerning the tourism entrepreneurship.
3.5 Sample Size
The sample of 30 graduates completed their studies in the courses related to the field of Tourism
industry was interviewed within the Morogoro Municipality.
3.6 Method of Data Collection
Both the Primary and Secondary was used to collect the data. These methods ensured that the
information accurately reflects the factors that hinder University graduates in Tanzania to
become entrepreneurs in the Tourism Industry.
Primary data are those data which were collected afresh and for the first time, and thus happen to
be original in character so the afresh data was obtained through the following instrument in the
field.
3.6.1 Focus group discussion
This is the form of qualitative research method of data collection in which a group of graduates
were asked about the perceptions, opinions, beliefs and attitudes towards the tourism
entrepreneurships to the graduates who are completing their studies related in the field of
Tourism industry.
3.6.2 Qualitative Interviews
Again this method involved the range of conversations between the interviewer and
graduates/interviewee who are living in Morogoro municipality, the type of conversation with

30. 20
the graduates was standardized open ended interview and closed interview which means that all
graduates were asked the range of open question and closed question concerning the tourism
entrepreneurship to graduates.
Secondary data on the other hand, are those which were already collected by someone else and
which have already been passed through process. Therefore the data was collected from different
Journals, Books, Articles and other approved researches.
3.7 Method of Data Analysis
Data Analysis is the process of systematically applying statistical and logical techniques to
describe and illustrate, condense and recap, and evaluate data According to Shamoo and Resnik
(2003) various analytic procedures “provide a way of drawing inductive inferences from data
and distinguishing the signal (the phenomenon of interest) from the noise (statistical fluctuations)
present in the data”. Therefore Microsoft excel is used in the data analysis for qualitative
research.
3.8 Schedules
The duration of the study covered nine months and the location of the study was within the
Morogoro Municipality.

31. 21
CHAPTER FOUR
4.0 RESULTS AND DISCUSSION
4.1Introduction for Analysis of the results
This chapter outlines the different presentations of data of the field research which was done on
the topic, „Factors that hinder university graduates from becoming entrepreneurs in the tourism
industry a case of Morogoro Municipality‟ in the process of field research the objectives
itemized were sought to be achieved. Data representations from graduates were considered as
much as possible with varying results because the research aim to come up with concrete
answers that is going to facilitate development of tourism industry through graduates in the
country and the world at large.
This research is conducted among graduate in Tanzania who have completed their degree
relating with the tourism business and Management between 2006-2013.
Story-telling interviews were used as a strategy of data collection. As Atkinson (1998) explains,
the story-telling approach is defined by an individual‟s narrative account of important events,
experiences, and feelings which may either focus on specific aspects of life or on a chronological
account of life as a whole. Story-telling and narrative interviews have proven to be useful in
enabling participants to easily express how they make sense of their environment, how they
relate to others, and how all this affects their endeavors towards a goal (Atkinson, 1998;
Johansson, 2004). During the interviews, graduates were given a specific starting point by asking
them to describe the factors that hinder the university graduates from becoming entrepreneurs in
the tourism industry. Also interview went further by asking the graduates which business (es)
they run, and to provide a detailed historical account of and reflection on their career progression
from university to full-time entrepreneurship, their perceptions of the developing Tanzanian
entrepreneurial environment, and the ways in which they have to be adapted to this environment
for creating and exploiting business opportunities in the tourism industry. These stories were
taped and transcribed.
The current analysis includes merely graduates respondents who are currently experiencing the
street life, these is because these individuals are able to inform the deterring factors and their
strategies to cope with challenges to those graduates. Thirty (n = 30) Graduate provided their

32. 22
views in this study. Appendix 1 provides a summary profile of the interviewed graduate on the
factors that hinder university graduates from becoming entrepreneurs in the tourism industry.
The presentation of data below revolves around the themes that focus on the factors that hinder
university graduates from becoming entrepreneurs in the tourism industry. These data
presentation offers a summary of an aggregate level of the most important experiences of the
Graduates and adds literal quotes from the interview transcripts which were significant and
illustrative.
Table 1 Graduates respondents profile in relation with the year completed the degree
S/N YEAR FREQUENCY OF
RESPONDENCE
1. 2006 1
2. 2007 1
3. 2008 1
4. 2009 1
5. 2010 2
6. 2011 2
7. 2012 6
8. 2013 16
Figure 2: A figure showing graduates respondents profile in relation with the year completed
their degree.
Source: Author field Data, (2014)
From the above Table in figure 2 the great multitudes of graduates responds are in the year 2013.

33. 23
4.2Graduates occupation
The results shows that graduates from the tourism course and other related studies they conduct
different activities, such as some of the graduates seems to own some small business which
enables them to improve their standard of living, the research managed to identify some few
graduates who own small shops, M-Pesa, Airtel Money, Tigo Pesa and also one beverages shop
was identified around the Mauki area in Mazimbu.
Also according to this study the graduates completed their degree that is relating with the tourism
most of them they are not engaging with this industry either standing as the self-entrepreneur or
employed from the tourism enterprise like Tour Company, travel agency, but rather the graduates
seems to involve in another industry of the economy out of the tourism industry, such that some
of the graduates involves in other economic sectors such as agriculture, mining, fishing and
trade.
But also the result shows that some of the graduates are volunteers in some of the tour
companies, NGO‟s, Research Education institution. Such detail can viewed below though the pie
Figure 3: A figure showing graduates occupancy rate within the Morogoro municipality.
Source: Field Data, (2014)
Description of the pie chart
4.2.1Agricultural

34. 24
About 33% of the graduates from the tourism degree they seem to engage in agricultural
activities, rather than focusing on what is their professional which is the tourism industry. But
also the result reveals that such kind of agriculture the graduates engage is very small agriculture
that involves the very small of capital and the graduates possess 3-10 acres.
4.2.2 Entrepreneurship
The results identified that about 33% of the graduates involve into various business, such as one
graduates engage with the provision of entrepreneurship education, such graduates possess his
school and it is known as Jita Mobile School, which it means that the school that moves in
different places, in other way it is the school that follows the student where they are found, Many
graduates they are engaging in the entrepreneurship but not in the tourism related business.
4.2.3 Employment
The results shows that about 17% of graduates that are graduated between 2006-2013 were
employed from different sectors including in the Ministry of Natural resource and Tourism
where by graduates provided some views on the issue of tourism industry and the tourism
entrepreneurship.
4.2.4 Volunteers
The results shows that about 17% of graduate are volunteering in different areas such as in the
conservation areas, Colleges, Tour companies and some in the NGO‟s.
4.4 Existing tourism opportunities.
From the question that were asked the graduates seems to have big awareness of the tourism
opportunities that are existing within the Morogoro area. Some of the existing tourism
opportunities that is identified includes
4.4.1 Natural attraction and protected areas
The results includes the Eastern Arc Mountains(Uluguru nature reserve), Mikumi national park ,
Selous game reserve, Wami mbiki game controlled area, also some of the protected area which
are the Tourist attraction are proximity with the Morogoro includes Saadan national park,
Udzungwa National National Park,

35. 25
4.4.2 Accommodation opportunities
The results reveals that number of accommodation facilities can exist within the Morogoro
municipality and this includes Hotels, lodges and Motel can be established by graduates for
providing services to the guest and tourist who are visiting some of the attraction in Morogoro
and some near places. Also the study reveals that Morogoro town is the center point that connect
people from different corners of Tanzania and near countries, due to this Centre point several
meetings are conducted in this town , thus it open now the window for graduates to establish
Accommodation facilities so as to accommodate all guest and visitors who centering through
Morogoro.
4.4.3 Transport opportunities
The study also found many opportunities in transport that the graduates can engage with it for
general economic development.
Figure 4: A figure showing graduates awareness on the availability of tourism opportunities
Source: Field data, (2014)
From the graph above about 50% (n=30) they mentioned that tourism opportunities are much
based in the natural attraction while 33%(n=30) they mentioned that in Morogoro they see many
opportunities in the accommodation sector and if they want to invest for the moment they will

36. 26
invest in the such sector, while the remaining group which count 17% (n=30) mentioned that
they see opportunities in the Transport sector and if they want to invest is only in this industry.
4.4 Factors that hinder University graduates from becoming entrepreneurs in the tourism
industry
In this section, the diverging response of University graduate on the factors that hinder graduates
from becoming entrepreneurs in the tourism industry is established based on the interview
findings.
First, the factors hindering graduate from becoming entrepreneurs in the tourism industry are
presented at an aggregate level in bar graphs 4.2.These findings are supported with selected
statements of the graduates‟ respondents, hence allowing the participant‟s points of view to
prevail.
The complete transcripts of stories show a vast array of themes which are beyond the scope of
this particular study. The findings present the factors that hinder university graduate from
becoming entrepreneurs in the tourism industry.
The complete transcripts of stories show a vast array of themes which are beyond the scope of
this particular study. The findings present the factors that hinder university graduate from
becoming entrepreneurs in the tourism industry.

37. 27
Figure 5: A figure indicating the graduate‟s respondents on the factors that hinder university
graduates from becoming entrepreneurs in the tourism industry.
Source: Field, (2014)
4.4.0 Discussion and Graph description
4.3.1 Capital
Almost 27 graduates out from 30 graduates who are equal with 90% interviewed gave an account
of how getting start-up capital was a major hurdle in their efforts to start an entrepreneurship
ventures in the tourism industry. Some of the interviewed graduates stated that they lack startup
capital because some of the banks do not offer loans to business start-ups, there are others that
do, but these set their borrowing conditions in such a way that a person with a newly started
business will not be able to meet them. This would be in the form of restrictions such as
submitting audited financial statements of three consecutive years, or having operated with the
bank for a given period of time. Under such restrictive
Conditions, a graduate entrepreneur with a business idea will spend a long time in moving from
bank to bank in search for less restrictive conditions. The lack of financial resources and the

38. 28
perceived difficulties in obtaining a loan have a negative effect not only on the aspirations of
future entrepreneur‟s graduates, but also on experienced entrepreneurs‟ choice of types and size
of business investment. Almost all graduates who intended to start a business using a bank loan
had experienced long procedures and restrictions that are not feasible for a starter. Most of the
graduates are from poor families and come directly from secondary school. In the eyes of the
banks, this type of customer lacks both the experience and security in terms of assets and
guarantors. In order to be able to start a company in Tanzania, entrepreneurs graduate have to
develop a strategy that enables them to deal with the lack of startup capital. Typically, their
strategies involve starting small or having a number of alternative product ranges and gradually
growing their businesses to the level where they can initiate the activities they had originally
envisioned. One interviewee was quoted saying that: “…our country does not have a system that
can enable a graduate to borrow large amounts of money. That is why you see entrepreneurs like
me divide our businesses into several small businesses.” In a number of instances entrepreneurs
graduates have faced options of whether to work with Friends and family or other entrepreneurs,
suppliers, customers and employees.
The findings in this study align with some of the conducted research in Tanzania such as
Saayman, (1998) explains that for business entrepreneurs and social entrepreneurs, finding start-
up capital remains a major problem , Also finance problems is one of the principal factors that
hinder entrepreneurship in a place Deller,(2002). Also the finding aligns with earlier Research on
the Tanzanian entrepreneurship and youth entrepreneurship in Africa (cf. Kristiansen, 2001;
Tillmar, 2006; World Bank, 2004). Lacking of capital and credit facilities reflect the widely held
assumption that entrepreneurship in Tanzania mainly concerns small scale initiatives aimed at
survival and livelihood provision. Hence micro-credit being widely available through banks and
governmental initiatives. While there is a significant growth in the banking and financial credit
sector (Lwiza and Nwanko, 2002; Temu and Due, 2000), banks in Tanzania hardly provide
larger credits to opportunity-driven graduate entrepreneurs. This is true in Tanzania, as family
members expect jobs for which they are not qualified and may drain the entrepreneur of
resources by demanding financial support (Egbert, 2009).
4.3.2 Trustful in business
In all instances, it seems that the question of trust was of a determining importance in choosing
who to employ or trade with among the graduate. For example, out of 30 graduates interviewed

39. 29
facing lack of start-up capital 15 graduates which is equal with 50% said that there is a problem
in trusting one another that‟s why they are not engaging in the business of tourism
entrepreneurship. The results align with the earlier conducted research such as by relying on
trusted relations, they reduce transaction costs through obtaininginformation and a means to
enforce contracts (Welter and Small bone, 2005). Overall, theirsense ofcontrol in complex
situations is enhanced (Höhmann and Malieva, 2005). Yet, the interviews alsoreveal that trust is
broken frequently due to conflicts of interests and opportunistic behavior.
4.3.3 Education system
From the 30 graduates who were interviewed about 40% equal with the total number of 12
graduates they explained that the type of education that they received during their time of study
did not prepare them to become entrepreneurs but rather the education they were receiving were
preparing them to serve the government, one graduates from the Bachelor of Tourism
Management was quoted that “ that’s why we have inhabited with the mindset of being employed
by Government only, since I started the school I were thinking only to work with the TANAPA
and Ministry of natural resource and tourism, but if we could be taught more entrepreneurs
studies in the same field of Tourism industry we could go very far away like operating big
investment in the industry of tourism”
As the interviewee continued many graduates continued to provide their reasons that type of
education received did not prepare them to get equipped in the entrepreneurship not only in
operating in the tourism industry but even to other sectors of the economy, also they stated that
education system is more based in theoretically perspectives than practically most of the
graduates they said that if they could receive practically education they could use the knowledge
obtained to do some economic activities that will eventually lead to the development of the
country in terms of social, economic and political perspectives.
4.3.4 Corruption
Tanzanian university graduate are most likely to face corruption when tendering for business
contracts and when dealing with institutions like the police, local government authorities and
other regulatory bodies. About 37% from eleven graduate stated that corruption is the most
harassing thing and hindering factor towards developing enetrperenuship in the tourism industry.
One interviewee owning Souvenir Shop explained that: “…it is not about delivery; it is not about

40. 30
the quality, or Otherwise. There are a lot of strange things out there! …I may need a business
contract, I say: “listen here, you have your Tshs. 200,000 and I have my contract ...” While
corruption is against the law, the evidence from the eleven interviews indicates that corruption
has been justified to be a way of “how Business is done here”. Corruption is taken to be a way of
building networks, gaining access to and acceptability among different formal and informal
institutions. Corruption presents an ethical challenge, meaning that it is hard to maintain a strong
ethical standard and at the same time be able to make progress in business life.
4.3.5 Strictly or Restriction to licenses and registration
About 77% from twenty three graduates they explained that process of registration in the tourism
business operation is too complicated such as they explained that if someone wants to lunch the
tourism business must go into several steps, and he or she has to follow up some laws and
regulation which govern establishment of the tourism ventures. One interviewee was quoted
saying that, “for someone who wants to lunch a tourism venture he or she must go to Dar es
Salaam for obtaining the licensing in the operation of tourism business, One graduates explained
how easily someone can be an entrepreneur in other business than in the tourism business this is
due to the simplicity of registration where by the business owner register the business and obtain
the licensing authority at the local government level. One graduates states that for someone who
want to become a tour operator must possess five four wheels cars something which is difficult
for Tanzanians since most of graduates come from peasant‟s economic family.
4.3.6 Competition and social legitimacy
For about 43% which is equal with the thirteen 13graduates they explained that they are not able
to enter into the competition with the big companies since they can end up with the total loss and
decline of the companies. Most of the graduates interviewed they fear in entering to the tourism
industry entrepreneurship because of the already existing companies, Further many graduates
continue to explain that tourism business is difference with any other type of business, ranging
from its registration up to the operation stage, they stated that for someone who want to start the
tour company must be sure where to capture the market and generate profit because if the
company will just be present and then nothing to earn the company must decline.

41. 31
4.3.7 Experience and Skills
From the thirty graduates that was interviewed about 40% that count the total of 12 graduates,
provided their views that they don‟t have enough experience in operation and management
business in the tourism industry, one graduates was quoted that “up to this time I’m don’t any
experience that can help me to survival in this town, I also attended one field practical in first
year and nothing that learned because the place did not have no tourist, I and my friends we
become to be the tourist in the area, therefore from that circumstance I didn’t gain anything in
my brain rather than making my own adventure”
Also the time for field practical training was not enough to some of the graduates, they explained
that doing eight weeks training practical and then you get back to the school for eight month
again for theoretical learning is not something that is good since it end forgetting all the thing
that I studied in the first practical training.
4.3.8 Government policy and law.
About twenty eight graduates equal with the 93% they explained that the government policy
together with the government law of the country do not favor the graduates to launch the tourism
business. One graduates explained that and he was quoted that “if you want to prove that our
government policy and law do not favor graduates to start business just go and see in the
Tanzania tourism policy and also see in the Tourism act, he explained that the policy is only
explained the promotional of local people in the operation of the industry but did not say
something about the graduates who are the professionals and fresh from the school”
Some graduates they continued to provide their views on the Tourism act the way in which it
addresses on the operational and lunching the tourism business, Most of the graduates they
critically criticized the tourism act that it is real not suitable for the developing of tourism
industry since it only favors people with enough capital, but for the peasant family people they
have to go into another business. Further the graduates continued to give their answers and
suggestion that the government law should be reviewed again so as to have the parts that will
defend some graduates who want to enter in the tourism entrepreneurship.

42. 32
CHAPTER FIVE
5.0 CONCLUSION AND RECOMMENDATIONS
5.1 Conclusion
The bases of this study were to get a better understanding of why many graduates do not involve
in the tourism entrepreneurship. The Cleary reason has been explained in the chapter four on the
result and discussion; the reasons are directly related with some of the existing literature that is
explained in the chapter two of this study.
Tourism entrepreneurship in Tanzania through the graduates still stand as the dream that cannot
be transformed into reality, this is according to their perception during the interview. Many
graduates view the system of government in Tanzania that do not favor the graduates to engage
in the tourism entrepreneurship, they mentioned that it is contrary against with other sectors of
the economy, many mentioned and referred in the agricultural sector as the most sector that favor
graduates to engage in the agricultural entrepreneurship.
Also in this study it is identified that Tourism Education and entrepreneurship is very important
and should be clearly taught in the class because it prepares and create background for being
entrepreneurship once they finish their study. In order to develop the positive mindset concerning
the tourism entrepreneurship in the tourism industry the study investigated that the following is
important to be done.
Develop relationships between academia and industry through establishing a consultative forum
which might include members of prestigious tourism associations, this will help to create the big
network since one of the entrepreneurship characteristics is networking thus socializing with
great people in the industry will make the graduates to develop an interest for becoming
entrepreneurs.
Develop a professional interchange program allowing academicians to gain experience in
industry and allowing industry practitioners to work within a university setting as either lecturers
or tutors.
An interchange program with similar elements could be organized in tourism education
institutions and the tourism sector. This could enable tourism academician to develop operational

43. 33
skills and industry experience, and educate tourism industry professionals with strategic
thinking.
Encourage governments to provide incentives to business to engage in exchange programs and to
increase the number of internship places, perhaps as an extension to the few apprenticeship
programs.
New policy formulations which will open the room for the graduates to engage in the tourism
entrepreneurship
Also new law formulations that will favor the graduate‟s involvement in the tourism
entrepreneurship should be enacted.
The gap identified in this study provides a direction for the future development of tourism
entrepreneurship through the graduate; there are a number of possible options for bridging the
gap
The tourism sector is amazingly rich and diverse. It includes small businesses operators,
multinationals, restaurants, hotels, travel agents, and transport operators. This diversity within
the sector would provide a fertile ground for exploration, comparing attitudes and outcomes
across different parts of the sector if graduates are well developed and endoctrinated
5.2 Recommendations
Reflecting on policy and educational implications of the findings, probably the first concern that
policy makers need to ponder is the evident gap that exists between the national drive towards
creating entrepreneurial graduates in the tourism industry and the lower levels of government
and implementing institutions that are key to the realization of this policy objective (e.g. training
institutions, financial institutions, tax authorities, local government authorities, civil servants,
and the community at large). The problem is rooted in difficulties of translating policy goals
formulated at a ministerial level into specific measures to be taken at lower government levels.
This calls for policy-makers to think of a proper framework that will guarantee the realization of
different policy goals at lower levels. For example, there could be specific tax reliefs granted to
graduates‟ start-ups in the tourism industry, or improvements in the legal framework that would
establish trust in contractual agreements beyond the common reliance on informal ties.
At the level of educational institutions, the challenge is to enhance the relevance of
entrepreneurship courses and programs taught in universities for addressing practical issues in

44. 34
the Tanzanian context. It is a common cry, also among the interviewed graduates, that university
courses do not prepare them to face the challenges in business practice. While a course lists
banks and microfinances as sources of capital, bankers in the real world say they do not offer
loans to start-ups.
Teaching entrepreneurship has to move beyond listing strategies for raising capital. Students
need also to be equipped with skills enabling them to deal with negative attitudes, competition
from large firms in the tourism industry, and to take advantage of other factors that are unique to
the Tanzanian context. Therefore, while there is an eminent need to improve training programs in
Tanzania, there is also a need to develop entrepreneurs who would be able to navigate in the
tourism industry. This could be done by working with a “triple helix” approach (cf. Etzkowitz,
2003), which advocates the engagement of (higher) education with both the industries and
government. In terms of entrepreneurship education in Tanzania a triple helix approach would
imply the involvement of financial institutions, local entrepreneurs and policy-makers in the
design, teaching and evaluation of entrepreneurship programs offered at the university.

45. 35
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APPENDICES
Appendix 1:
Research Questions
A: Personal information
Age (group)……………………………..
Gender: Male…………………..
Female…………………………….. (Put a tick to either of the two)
Marital status………………………………..
Location/place…………………………………………………………………
Occupation………………………………………………………………………
Year completed the university degree………………………………………….
B. Questions about the topic
1. What do you understand by the term tourism entrepreneurship?
……………………………………………………………………................
.........................................................................................................................
2. Have you ever involved in tourism entrepreneurship?
(a) If no,
(why)...................................................................................................................................
....................................................................................................
(b)If yes (how)...................................................................................................................
3. Are you employed? If yes, which sector have you been employed...
4. Do you think the university had prepared you for what you are experiencing
now?…………………………………………………………………………………………
………………………………………………………………………………………………
………………………………………………………………………………………………
………………………………………………………………………………………………
…………………………….

49. 39
5. Do you think your entrepreneurship development studies/classes in school helped in any
way?
6. Do you do anything now that could potentially or makes money for you? (Apart from being
employed), If Yes, is it related to any entrepreneurial studies you did in school or your
degree?.
7. What is the tourism entrepreneurship opportunities found in your area?
……………………………………………………………………………...............................
....................................................................................................................................................
8. Where do you see towards investing in relation to your carrier?.
.................................................................................................................................................
9. What are the challenges facing tourism entrepreneurs?
……………………………………………………………………………...............................
...................................................................................................................................................
...............................................................................
10. What are the ways that can motivate graduates to involve in tourism entrepreneurship?
………………………………………………………………………………………………
………………………………………………………………………………………………
………………………………………………………………………………………………
………………………………………………………………………………………………
………………………………………………………………………………………………
………………..