Resources and benefits for participation in social networks among small scale women entrepreneurs in Mwanza City, Tanzania

Abstract

In recent decades, there has been a shift in entrepreneurship theory and practice from viewing entrepreneurs as ‘independent’ towards viewing them as ‘interdependent’ and rooted in social networks. This study discusses the resources and benefits for participating in social networks among small scale women entrepreneurs in Mwanza City in Tanzania. The specific objectives of the paper were to (i) identify the categories of social networks and groups of women entrepreneurs (ii) examine the resources needed for participation in social networks and groups and (iii) assess the benefits accrued from social networks and groups by small scale women entrepreneurs in the study area. The paper is based on empirical data collected from 194 small scale women entrepreneurs in Mkuyuni and Kirumba wards in Mwanza City, using a questionnaire survey, semi-structured interviews and documentary review. The study found that small scale women entrepreneurs are embedded in different types of social networks, which they rely on for their entrepreneurial activities. In order to become members and to actively participate in these networks and groups, women contributed different resources, including time, money and labour in expectation of reciprocity from other members. Such social networks and groups are important tools for women’s entrepreneurial activities as they enhance their access to financial, human and social resources. While it is important to encourage and mobilize small scale women entrepreneurs to establish groups, such efforts should also take into consideration the costs and benefits for women’s participation in the groups.