SMALL BUSINESS

AND
ENTREPRENEURSHIP
TOPIC ONE
 WHAT IS SMALL BUSINESS? 2
General definition;
• Small business is defined as a business that has a limited
number of employees, typically fewer than 500, and
operates independently of larger corporations. Small
businesses are typically privately owned and operated and
have a single owner or a small group of owners.
• Small businesses are either services or retail operations like
grocery stores, medical stores, trades-people, bakeries and
small manufacturing units. Small businesses are
independently owned organizations that require less capital
and less workforce and less or no machinery.
PREPARED BY WINFRIDA KOBERO, MSc. 05/26/2025
 WHAT IS ENTREPRENURSHIP? 3

• Entrepreneurship is the process of starting or

developing, organizing, and running a new
business to generate profit while taking on
financial risk.

PREPARED BY WINFRIDA KOBERO, MSc. 05/26/2025

 WHO IS AN ENTREPRENEUR? 4

• An entrepreneur is an individual who creates a new

business, bearing most of the risks and enjoying most of
the rewards.
• An entrepreneur is someone who develops a business
model, acquires the necessary physical and human capital
to start a new venture, and operates it and is responsible
for its success or failure.
• An entrepreneur is defined as someone who has the ability
and desire to establish, administer and succeed in a startup
venture along with risks entitled to it, to make profits.
PREPARED BY WINFRIDA KOBERO, MSc. 05/26/2025
 WHO IS A SMALL BUSINESS
MANAGER? 5

• Small business managers coordinate the daily

processes and procedures of a range of smaller
organizations. They understand and take a role in
developing company policies, strategies and
procedures. They direct the production,
administration, sales and distribution of a smaller
organization.

PREPARED BY WINFRIDA KOBERO, MSc. 05/26/2025

 CHARACTERISTICS OF
ENTREPRENEURSHIP 6

• Creativity
• Passion
• Motivation
• Product or service knowledge
• Ability to network
• Self-confidence

PREPARED BY WINFRIDA KOBERO, MSc. 05/26/2025

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• Risk-taking
• Persuasiveness
• Decision-making
• Tenacity
• Money management
• Adaptability

PREPARED BY WINFRIDA KOBERO, MSc. 05/26/2025

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• Optimism
• Vision
• Goal mindset

PREPARED BY WINFRIDA KOBERO, MSc. 05/26/2025

 MYTHS OF ENTREPRENEURSHIP 9

• Entrepreneurship is easy
• You get to be your own boss
• Entrepreneurs get to live the good life
• Entrepreneurs are born that way
• To succeed, you just need a lot of passion
• You have to do it alone
• Entrepreneurs are all rich

PREPARED BY WINFRIDA KOBERO, MSc. 05/26/2025

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• The only requirement is a good idea

• Starting a new business guarantees freedom
• Launching a company quickly leads to wealth
• Only money motivates employees
• There’s a secret “SILVER BULLET” key to success
• Businesses need someone with a business degree at the
wheel
• Quitting is for losers
PREPARED BY WINFRIDA KOBERO, MSc. 05/26/2025
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• Age matters
• Entrepreneurs love risk
• You need lots of money
• Entrepreneurs stick to their project
• Success depends on luck
• Entrepreneurs live a very easy life
• Entrepreneurs are job-hoppers
• Entrepreneurs do not have a boss
PREPARED BY WINFRIDA KOBERO, MSc. 05/26/2025
 THE BENEFITS OF
ENTREPRENEURSHIP (ADVANTAGES) 12

A flexible schedule (both in terms of when and where you

work)
• One of the best things and biggest advantages of being an
entrepreneur is you can work from home, work from the office (if
you have one), and work from virtually any destination with a great
view and a glass of wine in your hand!
• You can also choose when you work. If you want to stay up late,
stay up late. If you want to get up early, get up early. The flexibility
of having your own business cannot be beat! It remains, in my
opinion, as one of the best advantages of being an entrepreneur. It
is hard to come by this amount of flexibility in any other job.
PREPARED BY WINFRIDA KOBERO, MSc. 05/26/2025
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Learning a lot and getting experience

• Not just about your field, but about accounting, marketing,
public speaking, website design, search engine
optimization, how to delegate, how to take risks, how to be
more creative and think about problems in other ways. And,
importantly, how to fail, how to be rejected, and how to get
back up on your feet anyway.

PREPARED BY WINFRIDA KOBERO, MSc. 05/26/2025

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It’s exciting and fulfilling

• It is exciting to build something from the ground up.

Especially when you love what you do. It is such a cool
feeling to make something out of nothing. And it is so fun
to hire awesome people to work for the company. And to
have amazing clients, many of whom are not only paying
customers, but also friends.

PREPARED BY WINFRIDA KOBERO, MSc. 05/26/2025

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Getting salary and most profit

• When you make money, you get paid more. It is not an
arbitrary number that you are being paid each year. And
you don’t have to wait for someone to give you a raise. You
get to keep the profits. You pay the expenses. And if you
are doing it right, this will end up being a good deal.

PREPARED BY WINFRIDA KOBERO, MSc. 05/26/2025

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You are viewed as a leader

• This increases confidence. People say “you have a brilliant
business model” and all sorts of other compliments that are
very nice. It is a very nice side benefit!

PREPARED BY WINFRIDA KOBERO, MSc. 05/26/2025

 THE POTENTIAL DRAWBACKS OF
ENTREPRENEURSHIP 17
(DISADVANTAGES)
You wear a lot of hats (doing lots of things)
• You are not just the owner of the company. You are the CEO,
secretary, website designer, accountant, head of
marketing, and janitor. That is, until you can afford to
delegate this to contractors and employees. And then you
take on the title of “employer” which, true, replaces some
of these other titles, but also brings a whole new set of
benefits and challenges to the table.
• So true, while you learn a lot as an entrepreneur, it is
because you do a lot.
PREPARED BY WINFRIDA KOBERO, MSc. 05/26/2025
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You are always at work

• It is true you can work from anywhere and at any time. But
really that is because you are working everywhere at all
times. You are always on call and always doing something
for the company.

PREPARED BY WINFRIDA KOBERO, MSc. 05/26/2025

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Work-life balance becomes tricky and is sometimes non-

existent

• Work-life balance becomes tricky. It is hard to draw a line

between “work” and “life” when you work from home. When
your office is not that-place-a-few-miles-away but is instead
your bedroom, your living room, your room, your home office.
• Your personal phone is your work phone (even if you have a
work phone). Same with personal email and personal time
(remember, you are always on call).
PREPARED BY WINFRIDA KOBERO, MSc. 05/26/2025
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Non-regular paychecks
• If your company doesn’t make money, you don’t make
money. So in some ways while the salary is “rationale”, you
get what you bring in, and in other ways, it is not. Because
you can work 50 hours a week and make nothing. This is
both liberating and terrifying.

PREPARED BY WINFRIDA KOBERO, MSc. 05/26/2025

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Having stress and even health issues

• Entrepreneurial ventures can bring about a new kind of

stress. Instead of an employee, you are responsible for all
decisions. If you fail or succeed, customers, vendors,
employees, and others are looking at you. So just as you
can be looked at as a “leader”, you can also be looked as
someone “incapable”.

PREPARED BY WINFRIDA KOBERO, MSc. 05/26/2025

 SMALL BUSINESSES IN THE
TANZANIAN ECONOMY 22

• According to the Tanzania Chamber of Commerce, Industry and

Agriculture (TCCIA), more than 90% of businesses in Tanzania
are small enterprises. SMEs contribute about 1/3 of the
country’s Gross Domestic Product (GDP) and are responsible for
generating up to 40% of total employment.
• Up to December 2024, it was estimated that Tanzania’s SME
sector consists of more than 3 million small and medium
enterprises employing more than 5 million people.
• Some businesses are formal, and some are informal. Some are
online and home-based, while others have physical stores or
offices.
PREPARED BY WINFRIDA KOBERO, MSc. 05/26/2025
 THE ROLE AND CONTRIBUTION OF
SMALL BUSINESS TO NATIONAL 23
ECONOMIES
Employing Local Workers
• Small businesses contribute to local economies by bringing
growth and innovation to the community in which the business
is established. Small businesses also help stimulate economic
growth by providing employment opportunities to people who
may not be employable by larger corporations. Small businesses
tend to attract talent who invent new products or implement
new solutions for existing ideas. Larger businesses also often
benefit from small businesses within the same local community,
as many large corporations depend on small businesses for the
completion of various business functions through outsourcing.
PREPARED BY WINFRIDA KOBERO, MSc. 05/26/2025
 24

Adapting to Changing Climates

• Many small businesses also possess the ability to respond and
adapt quickly to changing economic climates. This is due to the
fact that small businesses are often very customer-oriented and
understand the needs of the community. Many local customers
remain loyal to their favorite small businesses in the midst of an
economic crisis. This loyalty means that small businesses are
often able to stay afloat during tough times, which can further
strengthen local economies. Small businesses also accumulate
less revenue than larger corporations, meaning they may have
less to lose in times of economic crisis.
PREPARED BY WINFRIDA KOBERO, MSc. 05/26/2025
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Contributing to the Government with Taxes

• When consumers patronize local small businesses, they are
essentially giving money back to their local community. A
thriving local business will generate high levels of revenue,
which means that the business will pay higher taxes,
including local property taxes. This money is then used for
local police and fire departments as well as schools, etc. A
thriving small business also can improve property values
throughout a community, improving every homeowner's
bottom line while generating more property taxes for the
government.
PREPARED BY WINFRIDA KOBERO, MSc. 05/26/2025
 26

Growing a Small Business to a Corporation

• Small businesses do not always stay small. Large corporations, such as
Nike and Ben and Jerry’s, started off as small businesses and grew to
become major players in the national and international marketplace.
Many computer-industry leaders began as “tinkerers,” working on
hand-assembled machines out of their garages. Microsoft and Amazon
are prime examples of how a small business idea can change the world.
Small businesses that grow into large businesses often remain in the
community in which the business was first established. Having a large
corporation headquartered in a community can further help provide
employment and stimulate the local economy, creating a market that
favors the development of additional small businesses.
PREPARED BY WINFRIDA KOBERO, MSc. 05/26/2025
 27

Small firms have more flexibility.

• Anyone can start a new business. This makes them more
diverse in form, function, culture and increases their
potential as against large corporations. Greater the
diversity in an economy, easier it is for the country to
withstand tough conditions.

PREPARED BY WINFRIDA KOBERO, MSc. 05/26/2025

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Other contributions of small business;

• Generating higher production volumes,
• Increasing exports, and
• Introducing innovation and entrepreneurship skills.

PREPARED BY WINFRIDA KOBERO, MSc. 05/26/2025

 FORMS OF OFFICIAL SUPPORT TO
SMALL BUSINESSES IN GENERAL 29
AND IN TANZANIA
• Offering grants (financial aids that don’t need to be
returned)
• Offering loans (require repayment with interest)
• Training programs to small business owners (how to create
products, how to promote them, how to distribute them,
customer service, etc.)
• Organizing events and space for small business to promote
and sell their products, e.g The Dar es Salaam International
Trade Fair (DITF) by TANTRADE i.e Saba Saba Exhibition
PREPARED BY WINFRIDA KOBERO, MSc. 05/26/2025
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• Helping them reach local and foreign markets

• Doing campaigns encouraging citizens to support
local businesses, for example “Buy Tanzanian
Products, Build Tanzania”.
• Connecting company owners with technology
distributors.

PREPARED BY WINFRIDA KOBERO, MSc. 05/26/2025

 ADVANTAGES OF SMALL BUSINESS
TO INDIVIDUALS 31

Having More Independence

• Something that all self-employment individuals can enjoy is
more control and independence over their careers and
every single decision they make, such as holidays taken,
hours worked in a day and contracts accepted.
• For example, if you want to set up your own IT business,
then you’re free to choose only the projects that interest
you the most, instead of having to take on work you’re not
passionate about. For many, this freedom and flexibility
appeal more than continuing to work for an employer,
especially because they won’t have to report to anyone or
depend on other people’s decisions.
PREPARED BY WINFRIDA KOBERO, MSc. 05/26/2025
 32

Making More Money

• As you’re aware, you choose how much you get paid when
you own a business, as your wages can be a lot higher than
when you’re employed by someone else. You might have to
take more risks, since everything falls on you, but the
rewards are also bigger.
• You also have ownership of all the profits, meaning there
are no restrictions to how much you could be earning, and
you keep all after-tax profits you make, unless you have
partners or shareholders.
PREPARED BY WINFRIDA KOBERO, MSc. 05/26/2025
 33

Getting More Satisfaction

• Another reason to set up a small business is that you can
build a career that you love, using your passion, skills and
interests – this also means that you get more satisfaction
out of it too, since you’ll be doing what you love.
• In addition, this helps you to grow professionally as well,
and you’ll be more motivated to brainstorm ideas,
implement decisions, invest in training and development,
and more. After all, because it’s your business, you’re more
likely to be eager to face the day.
PREPARED BY WINFRIDA KOBERO, MSc. 05/26/2025
 34

Having an Impact on the Community

• This may not be the first thing that springs to your mind
when you think about setting up a business, but, for many,
it’s still an important consideration to make when you’re
trying to reach a decision. By virtue of being a small
business owner, you can contribute to the local economy,
whether by giving people jobs or by creating revenue that
goes back to the community.
• Having an impact on people’s lives and careers can be a
driving force for many, so keep in mind that building a
business
PREPARED can MSc.
BY WINFRIDA KOBERO, also mean building a platform to make all05/26/2025
this
happen.
 35

Enjoying Equity (Business ownership)

• This is another big reason why people choose to become
self-employed. By owning a business, you also have equity,
or something that you own, that you can build on and even
pass on to future generations. You can sell your business as
well and use that money to create a new company or to
retire early; it’s up to you and, in this regard, having equity
also means preparing for the future.

PREPARED BY WINFRIDA KOBERO, MSc. 05/26/2025

 36

Developing Knowledge
• Being self-employed allows you to become more
knowledgeable as well, and to grow your expertise in a way
that you, otherwise, wouldn’t be able to. You’ll have to
learn more about your industry, about how to set up a
venture, about how other companies are doing, how to best
promote a service or product, and so much more.
• For example, you may not have sought this knowledge if
you haven’t taken the leap into self-employment. So, you’ll
be able to grow your career more rapidly as well.
PREPARED BY WINFRIDA KOBERO, MSc. 05/26/2025
 DISADVANTAGES OF SMALL
BUSINESS TO INDIVIDUALS 37

It’s Riskier Than Being Employed

• There’s no denying that being your own boss has a lot of benefits but
it’s also true that there’s more risk involved as well. You’re the one
investing capital (or seeking a loan or investment) and making all the
decisions and, no matter how well-prepared you are, it’s impossible to
plan for everything.
• You may find that you end up using all your savings or that you’re not
saving enough money for retirement, at least not at the start. You may
also have debts right off the bat that you need to pay off and you’ll
have to pay your bills and living expenses too, which can quickly
become costly – all of this needs to be taken into consideration before
you leave everything behind.
PREPARED BY WINFRIDA KOBERO, MSc. 05/26/2025
 38

There’s More Uncertainty

• Owning a business also means going through more uncertainty
than when you’re in full-time employment. You’re not
guaranteed to find new gigs or to have your products accepted
by your target market, which can lead to financial problems.
• Of course, even if you’re employed, you never have one
hundred per cent job security either, since things can change
at any moment. So, if your dream is to build and grow your
own venture, don’t let this hold you back from achieving all
your goals.
PREPARED BY WINFRIDA KOBERO, MSc. 05/26/2025
 39

There’s More Financial Commitment

• As mentioned, you may have to use your life savings to set
up your business or even take on more debt than you’d
like. This sort of financial commitment may leave some
people uncomfortable, which may make them hesitate
when it comes to taking the plunge.
• Being in full-time employment doesn’t require this of you,
so it’s up to you to weigh the pros and cons and decide
what you’re more comfortable with, and what your dream
career truly is.
PREPARED BY WINFRIDA KOBERO, MSc. 05/26/2025
 40

Longer Working Hours

• The dream is to work as little hours as possible and spend
the rest of your time with family, friends and hobbies.
However, at least at the start, this may be downright
impossible. Most business owners have to work long hours
to build their venture from scratch and to get it to a point
where they can take a more hands-off approach, although
this, of course, depends on many factors, including the
type of business you want to run.

PREPARED BY WINFRIDA KOBERO, MSc. 05/26/2025

 41

Being More Stressed

• Because you have financial and time commitments, and
everything hinges on your decisions, you may also feel
more stressed than if you remained employed. Owning a
business means you need to be motivated and determined
and have the ability to push through these stressful
moments without feeling demoralized.
• Also, stress can arise from having to do everything, from
creating products and promoting them to having to hire or
fire people and deal with suppliers and late deliveries.
There
PREPARED areKOBERO,
BY WINFRIDA manyMSc. things to think, and worry about when
05/26/2025

you’re a business owner, and this can make it harder for

some to continue.
 42

Doing Things You Don’t Like

• This doesn’t just mean having to take on work you don’t
love when you’re just starting out in order to build a
reputation and grow your business, it also means making
hard and difficult decisions that help steer your venture in
the right direction.
• Firing people can be one of these tasks, it’s probably one of
the hardest things you’ll do as a business owner, so you
must be ready to face challenges like this when you want to
scale up and employ staff.
PREPARED BY WINFRIDA KOBERO, MSc. 05/26/2025
 43

THANK YOU

PREPARED BY WINFRIDA KOBERO, MSc. 05/26/2025