This paper draws on empirical data from a survey comprising 400 small-scale entrepreneurs in dressmaking and woodwork industries in Tanzania. The aim of the research was to identify characteristics of entrepreneurs and businesses and to assess their impacts on business adaptation and survival. The data reveal that half of the businesses are growing and one-third have increased their profitability by means of significant adaptations over the last year. Most changes occur in products and design. There is a significant correlation between the entrepreneurs' level of education and the propensity to change. The paper concludes that cottage industries in Tanzania have a remarkable ability to survive.
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