Factors Influencing Self-Employment among Vocational and Non-Vocational Graduates in Arusha and Dar Es Salaam Cities, Tanzania

Abstract

Self-employment provides an important alternative source of jobs in Tanzania, like in other countries with relatively high unemployment. This problem of unemployment is a major challenge among both vocational and non-vocational graduates. This paper sought to determine factors influencing on self-employment among vocational and non-vocational graduates. The study adapted a cross-sectional survey design with a sample of 384 respondents. Quantitative data were analysed using factor analysis and binary logistic regression while qualitative data were analysed through content analysis. Results indicated that 11 out of 30 factors influenced on self-employment among both graduates’ categories. Further analysis on factors indicated that age, experience in business, entrepreneurship training and access to capital significantly influenced on self-employment (p < 0.05) for both categories of graduates. Moreover, marital status, easy business start-up procedures and availability of facilities significantly influenced self-employment (p < 0.05) among non-vocational graduates. It is concluded that age, experience in business, entrepreneurship training and access to capital are the main factors influencing self-employment among Vocational and Non-Vocational Graduates in Tanzania, particularly in Arusha and Dar es Salaam cities, while marital status, easy business start-up procedures, and availability of facilities are additional factors that influence self-employment among non-vocational graduates alone. As some of the self-employment determining factors cannot be altered, policy interventions should be directed at strengthening factors which can be improved such as entrepreneurship training and access to capital for both vocational and non-vocational graduates while start-up procedures and availability of facilities should be given importance by non-vocational graduates, local authorities and regional authorities in areas, where the businesses operate.