COVID-19 Pandemic and Family Business Coping Strategies in Tanzania

Abstract

Covid19 pandemic affected businesses in many parts of the world including Tanzania. The disaster reduced the number of customers and negatively affected the business’ supply chain which led to limited availability of supplies, high cost of running businesses, and bad enough the closure and retardation of many core family businesses. Thus, the purpose of this study was to investigate family business coping strategies amidst COVID 19 pandemic in Tanzania. A case study approach was adopted in this study. The target population was family business owners in Sinza, Dar es Salaam. Data were collected through face-to-face interviews with heads and members of family businesses. Data were analysed thematically by using MAXQDA software. The study’s findings revealed that during COVID-19 period, many families were forced to think aloud on alternative sources of generating revenues which contributed to self-sufficiency, servicing loan facilities, and retaining connection with customers. The coping strategies were new product development, market development, usage of social media and cost minimization. The study concludes that the pandemic had immediate and long-term negative effects to the survival of family businesses in Tanzania. To ensure the sustainability of family businesses, the study provides several recommendations. Family business must think outside the box and identify potential new sources of revenue that align with their core competencies. In addition, family businesses must be innovative and adaptive to digital/online means of conducting business operations. For cost optimization, family businesses must be helped to optimize their costs by identifying areas where expenses can be reduced without compromising quality or customer experience. Furthermore, instead of reducing employee wages, family business must focus on engaging and motivating employees to be more productive and efficient. Finally, it is important to assist family businesses in making informed decisions about their operations by assessing the performance of different business units.