Sub-cultures and Entrepreneurship: The Value of Social Capital in Tanzanian Business

Abstract

The national cultures of the African nations are fragmented and it is interesting to witness the influence that some of the sub-cultural qualities have on small- scale business development. This article is an attempt to argue how the sub- cultural characteristics affect the acquisition of entrepreneurial resources at a specific location and also to see how the same has influence on the development of social capital. The article uses a case study methodology to study the entre preneurs involved in the wood business in the coastal town of Tanga, Tanzania. The empirical research establishes that sub-cultural qualities like group cohesion, mobility and level of education have significant effects on social capital formation, and thereby also on the access to entrepreneurial resources. Entrepreneurs belonging to African and Asian sub-cultures have different preconditions for developing social networks, trust and social skills, which influence resources like motivation, information and access to capital and markets.