THE STATE UNIVERSITY OF ZANZIBAR

CS 3223: ADVANCED TOPICS IN COMPUTER SCIENCE

Literature review report

For

THE CHALENGES FOR ICT ENTREPRENEURS

Supervisor: Dr. Abubakar Diwani

Article of ICT and Entrepreneurs Vol. 1, No. 1; July 2017

DECLARATION

I, JUMA, SIMAI SILIMA, declare that this document is my original work and that
has not been and will not present to any other person for a similar or any other
degree award.

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Article of ICT and Entrepreneurs Vol. 1, No. 1; July 2017

THE CHALENGES FOR ICT ENTREPRENEURS

JUMA, Simai Silima- (BSc)

Bachelor of Science in Computer Science, School of Science and Natural Science, Department
of Computer Science and Information Technology, State University of Zanzibar
Email: jumakirosa@gmail.com

Abstract

Entrepreneurship is increasingly being accepted as an important and innovative strategy for

improving the livelihood and economic independence of young people. Also, information and
communication technology (ICT) is believed to help the youths develop varied skills including
entrepreneurial skills. This paper examines the challenges for ICT entrepreneurs in enhancing
youth entrepreneurship in Zanzibar and Tanzania in general. Although the paper explains the
youth’s firm belief that they can radically change their life influences their motivation, decision,
and ability to establish and run an enterprise; and that ICT education plays a crucial role in
developing appreciable levels of self-efficacy and entrepreneurial spirit in the youths. Data for
the study were generated through the questionnaire administered to 150 respondents. Results of
the study show that: youths in urban areas are increasingly accessing ICT education; ICT
education enhances entrepreneurship in many ways; and more youths have high self-efficacy as
a result of the ICT education they have received. However, the study found that only few youths
are into entrepreneurial activities, owing to the challenges influencing entrepreneurship in
Tanzania. The challenges listed by the youths include poor education or illiteracy, inadequate
access to factors of production, insufficient capital, poor motivation, lack of credit facilities,
inadequate entrepreneurial training, constrained access to local and international markets, and
inadequate infrastructural facilities including access road and electricity and other challenges
are listed at below on the key challenges. The paper concludes that helping the entrepreneurs to
overcome these challenges will position them to contribute to national development.

Keywords: Information and Communication Technology (ICT), Challenges,

Education, Entrepreneurship

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Contents
DECLARATION ................................................................................................................................................ i
Abstract ......................................................................................................................................................... ii
1.0 Introduction ............................................................................................................................................ 1
2.0 Main objective ........................................................................................................................................ 1
2.1 Specific objectives ............................................................................................................................... 1
3.0 Methodology........................................................................................................................................... 2
4.0 Results ..................................................................................................................................................... 3
4.1 The respondents Profile ...................................................................................................................... 3
5.0 The way of ICT entrepreneurs that they can radically change their life influences their motivation,
decision, and ability to establish and run an enterprise ............................................................................... 4
6.0 The key challenges in implementing ICT for development ..................................................................... 4
6.1 Sustainability and scale ....................................................................................................................... 5
6.2 Lack of knowledge............................................................................................................................... 6
6.3 Pace of change .................................................................................................................................... 6
6.4 Funding ............................................................................................................................................... 6
6.5 Changing roles and norms .................................................................................................................. 6
7.0 Indicator of Successful Entrepreneurship ............................................................................................... 7
7.1 Figure: Indicators of Successful Entrepreneurship ............................................................................. 8
8.0 Opportunity for further Studies .............................................................................................................. 8
9.0 Conclusion and Discussion ...................................................................................................................... 9
REFERENCES ................................................................................................................................................ 10

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1.0 Introduction

Adam Smith in his book “Wealth of Nations” established that economic value came from the
combination of land, labor and capital (Smith, 1776). Profit was further acknowledged to be any
extra income in excess of the built-in value of the land, labor and capital. This extra income was
recognized to result from entrepreneurial activities (Gedeon, 2010). In determining the economic
value of entrepreneurship, past literature established the importance of entrepreneurship to the
economy, based on its contribution of high quality innovation, employment generation and dynamics
and, productivity and growth, relative to the contributions of non-entrepreneurs. In addition,
entrepreneurial firms are believed to produce important spillovers that affect regional employment
growth rates of all companies in a region in the long run (Praag and Versloot, 2007). However, the
overall positive effect of entrepreneurship is yet to be realized in many countries, due to the
challenges faced by entrepreneurs. For the growth and survival of these enterprises, a range of
resources (human capital, social capital, industry specific knowledge and ability to acquire financial
capital) is necessary (Cooper, Gimena-Gascon and Woo, 1994). It is perceived that with the advent
of computer, information technology, new methods of communication etc., entrepreneurs will be able
to combat socio-economic challenges.

2.0 Main objective

The main objective of this paper is to prepare literature review for examines the challenges for
ICT entrepreneurs in enhancing youth entrepreneurship in Zanzibar and Tanzania in general
according to what I researched on the field.

2.1 Specific objectives

 Explains the way of ICT entrepreneurs that they can radically change their life influences
their motivation, decision, and ability to establish and run an enterprise
 Provide key challenges in implementing ICT for development
 Point out Indicator of Successful Entrepreneurship

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3.0 Methodology

Through case study method, this study carried out a qualitative research in examining the
influence of ICT in tackling the specific challenges faced by entrepreneurs in Zanzibar.
Qualitative research is conducted when we wish to hear the inner voices of respondents and to
stimulate individuals to share their stories (Creswell, 2007), and the case study approach is used
to generate strong opinions, which can generally be translated to theories on a particular subject
(Zivkovic, 2012; Yin, 2008; Saunders et al., 2009; Bryman and Bell, 2011). Two entrepreneurs
running successful businesses in Zanzibar were selected and interviewed based on their ability to
successfully start, grow and sustain businesses in the Zanzibar business environment through the
application of ICTs in tackling cultural boundaries, lack of access to funds and interior education
as addressed in the literature review as assessed through a rigorous process of open-ended
interviews. These two successful entrepreneurs in Zanzibar were selected using criterion
sampling and recruited for the interview only after meeting the following criteria:

1. Entrepreneur who has initiated a business, is actively involved in managing it, and owns at
least 50% of the firm and has been in operation one year or longer.

2. Entrepreneur who became successful without obvious advantages such as relatives in high
positions of government or inherited family wealth. (Husseri, 1913, 1962; Moustakas, 1994;
Lopez and Willis, 2004; Larkin, Watts and Clifton, 2006; Smith, 2007).

The entrepreneurs in this study give a wide scope, although limited in number with respect to the
objectives of the research. The two businesses run by these entrepreneurs are located in two
different geopolitical regions of Zanzibar.

Respondents were able to talk extensively in not more than 60 minutes over three sessions (one
per week for three weeks) on the specific challenges their businesses faced before inception,
during development and challenges they still face. They were also able to talk about how they
addressed these challenges, and show the role ICT played in addressing some of the challenges.

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4.0 Results

4.1 The respondents Profile

A large majority of respondents were male (67.1%). Respondents age range from 18 to 60 years old
with the mean of 45.4 years. This study indicated that 70.2% of the respondents age was 41 years and
above. A large majority of the respondents interviewed have no formal or lower education in ICT
(31%), while 69% of the respondents possessed formal education in ICT. (Table 1)

4.2 Table 1: Respondents Demography Profile

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5.0 The way of ICT entrepreneurs that they can radically change their
life influences their motivation, decision, and ability to establish and run
an enterprise

A comprehensive approach to promoting entrepreneurship must work on three levels-individuals,

firm and society.

To motivate individuals to become entrepreneurs, they should be made aware of the concept of
entrepreneurship and this should be made sufficiently attractive option. They should be equipped
with the right skills to turn ambitions into successful ventures.

For entrepreneurial ventures to develop into healthy firms, supportive framework conditions are
essential. These should allow firms to develop and grow, and not to unduly hinder contraction
and exit.

Entrepreneurial activity depends on a positive appreciation of entrepreneurs in society.

Entrepreneur’s success should be valued and the stigma of failure reduced.

People might be more willing to accept the risk of entrepreneurship if it were compensated by
the prospect of reward in the event of success.

"Easy", highly mobile, and "social" are the mantras of this new generation of IT. So is the rapid
(read: instant) acquisition and delivery of business solutions. There is a growing realization
amongst workers and management that technology, though increasingly complex in it, can be
wielded far more rapidly and efficiently than their currently parochial capabilities are providing.

6.0 The key challenges in implementing ICT for development

Information and communications technology (ICT) represents an enormous opportunity to

introduce significant and lasting positive change across the developing world. The rapid
penetration of mobile access in particular has resulted in considerable improvements in the lives
of the poor in both rural and urban contexts. All evidence suggests that this trend is going to
continue, as the availability expands and the cost of access continues to decline.

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The breathtaking pace of penetration and uptake of mobile telephony and broadband Internet is
supporting many new possibilities, products, and services; providing breakthrough ideas in
agriculture, health, education, and access to finance; and helping local and international trade. It
also provides new ways of communicating and lobbying, which transcends international borders,
as shown by the role of mobile phones and the Internet in the waves of revolution that spread
across Northern Africa in 2011.

An Internet search using the phrase “information and communications technology for
development” (ICT4D) produces an overwhelming volume of literature, with many exciting
examples that promise enormous possibilities. ICT is changing the landscape whether we like it
or not, and despite its somewhat erratic progress to date, the influence is increasingly profound.

With this growing momentum, INGOs entrepreneurs are, in theory, well positioned to influence
how effectively and quickly ICT is utilized to benefit the poor and the disadvantaged. Through
their field programs and local partners, INGOs entrepreneurs have a deep understanding and a
close working relationship with the poor on the ground, with district and national government
bodies, and, increasingly, with the business community at local, national, and international
levels. In addition, through their international program teams, they have the potential to test,
share, and develop valuable knowledge networks that can assist them to spread valuable
learning, build on successes, and avoid pitfalls.

However, this new potential and opportunity is accompanied by significant challenges and
possible threats for large established entrepreneurs.

6.1 Sustainability and scale

The use of ICT in development programs supported by INGOs has, to date, been relatively ad
hoc, with many examples of small initiatives or pilots but very few large-scale, sustainable, ICT-
supported programs. To unleash the full potential of ICT in development programs, a new level
of collaboration, both internally and with other organizations and a new approach to scaling
solutions to achieve a really material impact are needed. This will necessitate significant
coordination between INGOs, technology companies, private sector organizations, universities,

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and government entities (central and local), as well as with traditional development partners as
an entrepreneurs.

6.2 Lack of knowledge

Many INGOs are not well equipped internally to support and nurture the effective exploitation of
ICT to benefit development. They simply do not have the knowledge, expertise, or
organizational capacity needed. The use of information technology is often seen as a thorny,
problematic issue relating to back office systems. Furthermore, ICT often has a questionable
reputation as a result of previous unsuccessful or costly initiatives.

6.3 Pace of change

INGOs’ current structures, staffing, and ways of operating have a strong momentum that is not
easy to halt or redirect. It is relatively easy to utilize ICT to sustain and improve current
organizational constructs and approaches, making useful but incremental progress. It is
incredibly difficult to conceive of new ways of working with organizational constructs that are
fundamentally different from the status quo and require a shift in terms of strategy, competence,
skills, and organizational structure.

6.4 Funding

There also is a significant challenge in adequately planning and financing the use of ICT in
development programs. With cyclical donor funding and pressure to minimize administrative and
management costs, it is often difficult for INGOs to properly plan and resource financial and
human investments in ICT as a core capacity for development programs in entrepreneurs.

6.5 Changing roles and norms

The emergence of new ICT possibilities potentially presents some more fundamental and far-
reaching questions, challenging or even undermining the assumptions on which entrepreneurs
came into being. When we reflect on why entrepreneurs were originally founded, we can isolate
a number of specific gaps between people and communities in poverty and those in more
affluent, developed parts of the world. For example, if we think about gaps around understanding

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and information, traditionally INGOs helped us understand the dire need of communities in the
poorest parts of the world. There are also gaps in terms of access, communication, and of course
resources that INGOs have historically played an important role in addressing challenges of
entrepreneurs.

While some of these gaps still exist, they are, arguably, not as clear or compelling as they once
were. We can see that developments and possibilities created through ICT, directly and
indirectly, materially change the landscape in relation to many of these gaps.

7.0 Indicator of Successful Entrepreneurship

Based on the interviews and analysis from UNCTAD (2014), six indicators were noted as
measurement of Successful entrepreneurship. These indicators are:

1. Work-life balance: The ability of an entrepreneur to overcome time poverty.

2. Independency and the ability to earn income: The ability of an entrepreneur to earn income
independent of help from family.

3. Easy access to funding for expansion of their businesses: The ability of an entrepreneur to
easily access capital for the expansion of his/her business.

4. Increased literacy and education skills: Characterized by improved access to business

education, as a result of networking.

5. Easy access to customers, suppliers and business partners.

6. Global Presence (International recognition of the business).

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7.1 Figure: Indicators of Successful Entrepreneurship

8.0 Opportunity for further Studies

Further studies can be carried out on the above listed indicators of successful entrepreneurship,
as these indicators can be further developed to form a framework designed to serve as a guideline
for upcoming entrepreneurs who aim to achieve success in entrepreneurship.

Also, an ICT application that encompasses the ICT needs of the entrepreneur can further be
created. In the survey carried out in this study, entrepreneurs were asked how they would
perceive this type of application, 98% of respondents were enthusiastic about the application.
The application should be a user-friendly time management and resources gathering application,
that does the combined job of a journal and a personal assistant by effectively and efficiently
demystifying the various dimensions of an entrepreneur’s life, by managing his/her business and
social life thereby creating a work-life balance, creating easy access to customers, suppliers and

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business partners, funding information, business news pertaining to the entrepreneur’s business all
on one easy platform accessible through his/her mobile phones, PC and tablet.

Possible platforms for the application: IOS, Symbian, Java and Windows.

9.0 Conclusion and Discussion

From the result gained it can be concluded that five main problems faced by Tanzania
entrepreneurs in using ICT were they do not know the benefits of using ICT, have no skill in
using ICT, lack of time spent in using ICT and have no ICT knowledge. Based on this
information, responsible agencies should increase the number of ICT courses, training, ICT
promotion and ICT centre especially in agriculture areas. Those who are senior, possessed lower
education and lower income were found to have difficulties in using ICT. This is based on the
high percentage they recorded on the five main problems studied. Deraman and Samsul (2000)
have come with solution to solve problems regarding educating ICT to the entrepreneurs. They
have emphasized that to educate the entrepreneur with ICT, they should first educate their
children and then the children will educate their parents. This is an indirect way of ICT teaching
and their study has proved that it was one of the successful methods. It is also suggested that ICT
application should be created in local languages and English. This can be the main alternative to
solve the problems in using ICT by the based entrepreneurs and those with lower education.

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