Human capital elements and performance of small-scale manufacturing firms in Tanzania
by Darma Mahadea; Aira Mkocha; Shaun Ramroop
International Journal of Education Economics and Development (IJEED), Vol. 3, No. 2, 2012

Abstract: Previously, Tanzania pursued a socialist approach to development. This failed there, as in most other countries. Consequently, since the 1990s Tanzania started promoting SME entrepreneurship to fast-track its economic growth and development. A lack of human capital can hinder development just as a shortage of physical capital. This is more so in the new economy that is increasingly knowledge-based. Investment in education and training improves individual and organisational efficiency, with externality benefits. This study, based on a sample of 200 manufacturing firms, examines the influence of human capital elements of entrepreneurs and workers on enterprise performance in Tanzania over the period 1999-2003. Regression and Cobb-Douglas production function analyses undertaken confirm that the firm cannot be 'entrepreneurless'. Human capital elements of labour and the entrepreneur together with physical capital are found to be critical predictors of performance, with combined estimated beta coefficients of 3.38, evidence of increasing returns.

Online publication date: Sat, 23-Aug-2014

The full text of this article is only available to individual subscribers or to users at subscribing institutions.

 
Existing subscribers:
Go to Inderscience Online Journals to access the Full Text of this article.

Pay per view:
If you are not a subscriber and you just want to read the full contents of this article, buy online access here.

Complimentary Subscribers, Editors or Members of the Editorial Board of the International Journal of Education Economics and Development (IJEED):
Login with your Inderscience username and password:

Username:        Password:          Forgotten your password?

Want to subscribe?
A subscription gives you complete access to all articles in the current issue, as well as to all articles in the previous three years (where applicable). See our Orders page to subscribe.

If you still need assistance, please email subs@inderscience.com