Unravelling the Relationship between Entrepreneurship Networking and Market Performance of Micro and Small Enterprises in Arusha, Tanzania

Abstract

Micro and Small Enterprises (MSEs) in Tanzania are underperforming due to a number of challenges. In this line, entrepreneurship networking improves MSEs’ marketing performance irrespective of the unfavourable business environment. Despite the significance of entrepreneurship networking, there was scanty knowledge on the influence of coordination, relational, partner, and intercommunication skills on enterprise sales, profit, and customer base. Based on the network perspective, this study intended to fill in such gaps. Most studies assessed the nexus between entrepreneurial networking and firm performance anchored on the network theory. This study assesses the influence of entrepreneurship networking programmes offered by the Small Industries Development Organisation (SIDO) on the market performance of MSEs in Arusha Municipality. A cross-sectional research design was adopted, and data were collected from 230 sampled MSEs by using stratified and simple random sampling techniques. Data were analysed by using descriptive analysis and the Multiple Linear Regression model (MLR). Findings revealed a significant statistical relationship between entrepreneurship, networking and market performance. The study, therefore, concluded that MSEs' market performance is driven mainly by access to a unique bundle of entrepreneurship networking programmes. MSEs need to have resources that will connect them to strong network ties for better market performance.