UNIVERSITY OF DAR ES SALAAM

INSTITUTE OF DEVELOPMENT STUDIES

COURSE TITLE: DEVELOPMENT PERSPECTIVES II

COURSE CODE: DS 113

SEMINAR LEADER: LENDIAN ALFAYO

SEMINAR TIME: 1700-1800HRS

SEMINAR DAY: WEDNESDAY

SEMINAR VENUE: SR 07

PARTICIPANTS:

S/N NAME PROGRAM REG.NUMBERS SIGNATU

1. IMELDA DICKSON Bsc.in Chemical and process 2022-04-04432
KIPONDA engineering
2. HERMAN SIDNEY Bsc.in Chemical and process 2022-04-08781
MTUNDA engineering
3. DENNARD LEONARD Bsc.in Chemical and process 2022-04-07363
MHANDE engineering

QUESTION: Analyze the internal and external factors that motivate entrepreneurial behavior
and discuss which of the two has much influence
 Entrepreneurship is the process of developing, organizing, and running a new
business to generate profit while taking on financial risk. Example of entrepreneurship is
starting a new business, like Tesla Is known for its electrical cars. Although the target customers
are limited the enterprise enjoys a large market share and high profit margins. Also in 2006,
Disney purchased Pixar instead of creating its own studio to compete with it, it was a lucrative
arrangement as plenty of Pixar movies were global blockbusters and Disney maximized the
profit Also Uber Technologies revolutionized transportation by giving a new direction to the
taxi industry. By using the existing driver pool as independent contractors, they grabbed a
massive market share and attracted good investment. There are different entrepreneurship
features like risk taking ability, creativity and innovation, vision, open mindedness and profit
oriented. Also, there are reason for the need of entrepreneurship which are as follows
encourages motivation, creates jobs, improves standard of living, introduce visible change and
contributes to research and development.

Entrepreneur is a person who sets up a business or businesses taking on financial

risks in the hope of profit. Example of entrepreneurs in the world are Sarah Blakely (founder
span), Chichi Ebru (founder of Julia’s place ) ,Ben Francis ( co- founder of Gym shark ) , Ariana
Huffington (co-founder of the Huffington post ) , Oprah Winfrey ( chairwoman and CEO of
Harpo productions ) , Alexis Ohanian (co-founder of Reddit), Tobias Lute (co-founder of
Shopify ) , Melanie Perkins (co-founder of Canva) , Larry Page (co-founder of Google) , Bill
Gate (founder of Microsoft ) ,Steve Job ( co-founder of Apple computers , which produces Macs
, iPods , and iPhones, as well as Apple TV), Mark Zuckerberg (the founder of Facebook ) ,
Pierre Omidyar ( founder of eBay) , and Richard Branson.

Entrepreneurial behaviors are the set of traits that an individual exhibit which
allow them to innovate and or improve upon existing ideas to market a product or service
effectively in competitive market. There are key elements of entrepreneurial behavior which
includes mitigating risks, the ability to bootstrap, understanding affordable loss, pivoting where
necessary, self-confidence, innovativeness, and opportunity recognition, positive thinking,
having clear end goals, managing time efficiently, never stop learning and learning from
successfully people. The entrepreneurial behavior can also be motivated by different internal
and external factors.

Internal factors are those factors that can shape the overall mind set of an
entrepreneur, ability of making decision for development of their businesses, and the ability of
identifying the available opportunities in the given place for them to start the business by taking
risks with hope of gaining profit.
 External factors are those factors that provides different opportunities that an
entrepreneur must navigate on starting and running an entrepreneurial activity. For example the
place where there is a good economic condition its more preferable to establish the entrepreneur
activity since there is insurance in the capital availability in which funding sources provides
fund to the entrepreneur for them to run their activities, also due to the good economic condition
many people afford the price of different services and products leading to the profit gain to the
entrepreneur due to the availability of the customers who are able to afford the price of their
activity .

The following are the external factors influencing and motivating entrepreneurial
behavior in different countries including Tanzania,

Government policies and regulation, government policies and regulations have

significant influence on the entrepreneurial behavior in which the favorable policies and
regulations encourages the entrepreneur to start business since the policies set in a country do
not affect their activities negatively since they play their role in paying taxes fairly without
being exploited with the burdensome regulations and policies. Example in Tanzanian country a
lot of entrepreneurs start their business with a lot of self-confidence and ability of taking risks is
high due to the laws, policies, and regulations which favors the entrepreneur activities in the
country and this leads to entrepreneur like Baksheesh, Saul, and GSM However burdensome
regulations and policies discourages the entrepreneurial activities in the country. The examples
of government policies and regulations includes favorable tax laws, favorable labor laws, and
the intellectual property protections. Thus, good government policies and regulation influence
the entrepreneur to be able to recognize opportunities and to be self-confidante in starting
business since the policies and regulations set by the government support their entrepreneur
activities.

Accessibility and availability of funding, in the places with funding resources

like loan banks, and government grants, many of the entrepreneurs are encouraged and
influenced to start a business since their ensured with the availability and accessibility of capital
and fund to run out their business, thus making the passion and self-confidence traits to be in the
mind sets of entrepreneurs leading to the establishments of business. However, the
unavailability of funding sources many entrepreneurs are discouraged to establish their business
since they’re not assured with the availability of capital to run out their businesses. Hence
accessibility and availability of funding in the country influence the entrepreneur to have self-
confidence of starting a given business since the entrepreneur is assured with the availability of
capital to run the businesses. For example, due to the availability of funding sources in Tanzania
many entrepreneurs like Baksheesh, MO, GSM and Dangote have established different business
in which they are assured with availability of capital thus any time they can borrow money for
capital from the funding sources like from Bank of Tanzania.

Market competition, the higher market competition makes the entrepreneur to be

more innovative since they have to come up with something new so as to differentiate the
services they deliver or the products they make in order for them to win the market competition.
Thus, the higher the competition the higher the entrepreneur becomes more innovative. For
example, in Tanzania due to higher competition in market for jersey, each club innovate their
products so as to be different from the other so as to win the market thus this make Simba and
Yanga club to always be innovative so as they can produce jersey of higher quality to win
market for the development of their club. Thus, this led to the production and supply of jersey of
good quality and higher grades to the customers. Thus, the more the market competition the
more the entrepreneur become innovative. But the less competition the less innovation rate
among entrepreneur. Also due to the higher market competition on beverages makes the
industries to be more innovative to differentiate their products that why in Tanzania country
many companies involving in production of beverages always comes up with new flavors so as
to win the market for their products, like TBL comes with Serengeti, Kilimanjaro, Pepsi comes
with Miranda, seven up, Coca Cola comes with Fanta and tantalize. Thus, market competition
motivates and influence entrepreneur behavior which is innovation.

Economic condition, if the economic condition of the given place is good and
high many people are encouraged to establish a given business since people in that place are
able to afford the prices and services provided by the entrepreneur due to their good economic
conditions. But intern if the economic condition is poor many people are discouraged to start
their business since a lot of people cannot afford the prices of the services and products
produced by the entrepreneur. Example due to the good economic condition of many people in
Dar es salaam many businesses are established example Merry Brown, and pizza hut in which a
lot of people can afford the prices of those places, unlike in remote areas in this business is hard
to establish since people are not able to afford prices of the products. Thus, the good economic
condition motivates the entrepreneurial behavior in which the entrepreneur become able to
recognize the places with opportunities. Also, if the economic condition is bad many monies
will be used in the important sectors rather than lending as loans and hence entrepreneurs are
unassured with capital availability. Thus, the good economic condition motivates and influence
the entrepreneurial to recognize the areas with opportunities and increase their self-confidence
since they can attain a high profit as long as people can afford their services and products prices.

Science and technological advancements, the rapid development of science and

technology makes a lot of people to be innovative. the emergence of new technology such as
artificial intelligence, blockchain, and the internet of things, they both enable innovative
business model and opens up other new markets. Thus, the science and technology also facilitate
the emergence of improved means of production hence motivates a lot of entrepreneurs to open
up enterprises due to improved and simplified means of performing different activities. Example
due to advancement of science and technology different machines for grinding maize have been
discovered hence encourage a lot of people to open business of converting maize into flour
compared to the past period in which people had to use their hands. Thus, development of
science and technology motivates the entrepreneur and make them to be innovative.

The following are the internal factors that motivates and influence the
entrepreneur behavior;

Personal traits; the natural habits possessed by an individual highly affect his or
her entrepreneurial behavior. Attitudes like self-confidence, Risk tolerance, vulnerability and
self-esteem highly shape one’s entrepreneurial behavior. For instance, most ladies start”
cosmetics shop”, “make up” and “saloons” due to their habits of taking care of their beauty. This
has shaped most people behaviors towards entrepreneurship in the society.

Knowledge and skills; the amount of technical know-how about business highly
shapes one’s entrepreneurial behavior. Knowledge and skills of Business management and
administration, marketing, Procurement and Supply and also finance highly improve one’s
Entrepreneurial behavior. For example; most university graduates of business schools use their
knowledge and skills to open “stationary” and “food supply enterprises” to earn their income.
This has hence shaped entrepreneurial behavior of most people in the society as they have good
awareness of Entrepreneurship intellectually.

Motivation and ambition; the level of inspiration in an individual directly

affects his or her entrepreneurial behavior. If one dreams of achieving something through
Entrepreneurship, his or her commitment will be high. Taking Business students as a case study,
we can see that most of them are inspired by their family background and the successful
businessmen like “Mohamed Deja” and “Bakes”. This has fired most people’s attitude towards
entrepreneurship as they become passionate of it and end up being successful.

Past experience ; what one has passed through in the past highly affects his or
her future in Entrepreneurship. If one has failed in the previous business experience, this will
make him or her strong enough to face future challenges. For instance, a Bakery owner may
change ingredients of her cakes after losses in the past so as to attract more customers. This has
shaped people’s Entrepreneurial behavior as they learn through past mistakes and become better
Entrepreneurs.

Risk appetite; the desire of one to face challenges and offer solutions to them
highly shapes one’s entrepreneurial behavior. For instance, a chemical engineer can start a
“Drinking water enterprise” to test himself of how he can solve problems of the society. This
has shaped most people’s behaviors towards entrepreneurship as they become ready to face
different business challenges

On explaining the one with more influence on entrepreneurial behavior;

both internal and external factors have the same effect on the entrepreneurial behavior in which
the external factors like economic conditions, government policies and regulations set the stage
and provides different opportunities in which the entrepreneur must navigate on starting and
running a certain enterprises’ the internal factors like risk taking ability influences ability to
make decision and overall mind set of an entrepreneur in running the enterprises including the
ability to overcome different challenges. Hence both internal and external factors have the
similar influence on the entrepreneur behavior depending on the given context.

Finally; the entrepreneurial behavior helps the entrepreneurs to run out their
enterprises effectively leading to the higher achievement and development of their enterprises
intern leading to the provision of services of higher quality and good quantity to the customers.
also due to the achievement and development of their enterprises, the national economy rises
due to the payment of taxes to the government.
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