Why some women fail in business

Every entrepreneur has their eyes trained on the future turnover, profits, and general growth of their venture from the very onset. However, this often requires the attainment of some basic skills with which to run the affairs of the business in order to see it grow.

As more and more women are positioning themselves as business owners, there has been an unending struggle, with many never getting anywhere in this aspect. Some women have, however, been able to wade through the murky waters of business, even growing their brands into something spectacular.

Jennifer Makubi, 49, a food vendor at the Mawasiliano bus stand, attributes the stagnation of her business to over-reliance by her family on the meagre income the business generates. She has, however, made some progress in that she has managed to educate her son through her food business.

“I have been able to put my firstborn son through university education, and much of the school fees and upkeep for the younger children comes from my small business,” she says.

Jennifer does not have high expectations for the business to grow, but at least it keeps food on the table. Having started back in 2009 after the death of her husband, the business has barely kept afloat.

Zainabu Ramadhan, 38, a vegetable vendor, blames her husband for abdicating his responsibility as the provider. She says that this turn of events is what prompted her to start the business. It is through vicoba (revolving funds) that she was able to raise start-up capital.

Learning from business leaders and networking

While running start-ups has been an uphill task, not all women can complain. Some have been laughing all the way to the bank. Mwanamdee Shirima, 31, proprietor of Mwanamdee Collections in Sinza, reveals that her business has been on an upward trend since 2015, when she started after graduating from university.

“I started with a very small capital, but my father connected me with traders doing the same business, selling clothes. I learnt the ropes from them, and that is why I am where I am today,” she says.

She adds, “I learnt from the top-notch traders, and that's the exact reason why I’m here today."

According to Rightness Damas, 29, owner of a cereal store in Manzese, she had a clear roadmap of how and what she wanted to do with her business before venturing into it.

“Before starting, I wanted to be sure of everything important, including the pitfalls entailing the cereal business,” she reveals.

Although she experienced some challenges at the onset of the business, she weathered the losses and started making profits.

“My first task was to network with other traders from different regions. I did a lot of travelling to different regions to source cereals and establish the best prices.”

Lois Metili, Head of the Department of Entrepreneurship and Innovation at Tumaini University Dar es Salaam College, says women entrepreneurs lag behind their male counterparts. Businesses either stagnate or fail to take off.

"Though this is not to say that there aren’t growing and thriving female-owned businesses, there are, however, just not as many as stagnant businesses,” she says.

Women are wired to do things differently owing to their confidence (or lack of it), risk-taking propensity, resilience, assertiveness, or self-efficacy. This does not imply that women score poorly in these psychological characteristics or that they are universally disadvantaged.

It simply indicates that, on average, there may be differences in how female entrepreneurs in Tanzania score on specific psychological measures compared to their male counterparts, such as leadership.

“Entrepreneurship requires leadership skills. Scoring lower in some of these attributes, such as leadership, affects how female entrepreneurs succeed in their ventures. Differences in social and cultural acculturation have their effects too,” she concludes.

Joseph Manyeri, a financial consultant, says a business needs full attention, especially during the launch, as well as strict supervision of its day-to-day operations. Female entrepreneurs have to juggle between family, social events, and business.

Childbearing and homemaking roles as designed by society, which include long hours and lengthy days away from businesses, mean that female entrepreneurs become somewhat incapacitated by delinking them from customers, suppliers, and staff.

He observes that there are businesses solely associated with women that have very low-income margins aligned to sectors such as fashion, beauty, wellness, childcare, education, and other areas traditionally considered ‘feminine’ or are related to women's interests and needs.

“Most of these businesses have small markets, small profits, and lack growth potential,” he alludes.

But one factor that has over the years become an impediment to the growth of women’s enterprises is the existence of overbearing spouses who believe that women should be at all times below them to keep them on a financial leash.

"Although some men have been ardent supporters of women, there are those who do not believe in their wives' success. Others abdicate their responsibilities to women and stop giving them financial support even before their businesses pick up.”

Getting there

According to Lois Metili, one can overcome such problems by repackaging one’s mindset.

“Build confidence through reading books and articles, learning from other successful entrepreneurs, and taking critical leadership positions in their ventures. Challenges help people learn to overcome fears and challenges to become successful."

She also suggests that women in business should know how to deal with patriarchal dispositions that can ruin their projected journey in entrepreneurship.

She advocates for one to seek out help whenever possible. On the domestic front, one can enlist help from a house help to assist with some work at home.

Addressing disparities in society around women and working towards creating an equitable environment for female entrepreneurs can help foster their growth and success in Tanzania's entrepreneurial landscape.

“Society should support women in business so that they can be more successful,” she says.

For his part, Manyeri says women in business need to master skills and knowledge on how to develop businesses.

“Always plan for growth, extending the business by making full use of technology. For instance, a salon could become a beauty school, a YouTube channel, or a natural beauty products factory in addition to its traditional tasks," he advises.