Effects of vocational education training on business performance among self-employed vocational and non-vocational graduates in Arusha and Dar es salaam cities, Tanzania

Abstract

Skills and knowledge acquired through Vocational Education and Training (VET) have much potential for improving performance among firms owned by selfemployed VET graduates. However, studies debate on whether such skills and knowledge contribute to better firms’ performance. Effects of vocational education and training on business performance among self-employed VET and non-VET graduates and their contribution to attainment of sustainable livelihoods outcomes have not sufficiently been explored. The study on which this thesis is based was conducted in Arusha and Dar es Salaam Cities, Tanzania, to contribute to this knowledge gap. Specifically, the study (i) assessed factors that influence selfemployment among graduates, (ii) determined firms’ competitive strategies used in attainment of profitability, (iii) compared effects of assets capitalisation on revenue performance, and (iv) determined livelihood assets owned and chances for sustainable livelihoods outcomes attainment among self-employed graduates. Quantitative and qualitative data were collected in March and April 2018 through a cross-sectional survey involving a sample of 384 self-employed VET and non-VET graduates. Quantitative data were analysed using Statistical Package for Social Sciences and Microsoft Excel computer programmes while qualitative data were transcribed into text and analysed using constant comparison content analysis approach. Binary logistic regression results indicated that four factors influenced self-employment among VET graduates while seven factors influenced selfemployment among non-VET graduates. The results on competitive strategies indicated that implementation of cost-leadership and differentiation strategies among both VET and non-VET graduates were positively related to firms profitability. However, further findings indicated that there was no difference in profitability variables performance between VET and non-VET graduates. Multiple linear regression results indicated that tangible and intangible capital (experience in business) positively influenced revenue attainment among firms owned by both categories of graduates. The results further indicated that there was no significant difference in livelihood assets owned and thus chances for sustainable livelihoods outcomes among the them were almost the same and limited to the level of assets owned. It is, therefore, concluded that seven factors influence self-employment, whereby among the factors, seven are significant among non-VET while four factors are significant among VET graduates towards self-employment. It is also concluded xvi that cost-leadership and differentiation are the two strategies that influence profitability among firms owned by both VET and non-VET graduates. On the basis that tangible and intangible assets positively influence firms revenue for both graduates businesses, it is concluded that tangible and intangible assets (experience in business) are the main factors that influence revenue generation among firms owned by VET graduates and non-VET graduates respectively. It is also concluded that livelihoods assets owned by VET and non-VET graduates are almost equal and the sustainability chances of livelihoods outcomes attainment are the almost same and limited to the level of assets owned by each group.