Assessment Of The Influence Of Business Practices On Start-Up Performance: The Case Of Selected Municipalities In Dar-Es-Salaam City
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Date
2025-07
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NM-AIST
Abstract
Startups are critical engines of innovation, employment, and inclusive economic growth. In Tanzania, Dar es Salaam accounts for over 66% of the nation's startups, yet approximately 70% fail within the first three years. Despite increasing support mechanisms, little empirical evidence exists on how contextual business practices shape startup performance in urban African settings. Guided by Entrepreneurial Event Theory, Action Theory, and Strategic Resource Management Theory, this study assessed the influence of Business Behavioral Practices, Regulatory Practices, and Business Resource Management Practices on startup performance in Dar es Salaam. A quantitative, cross-sectional design was adopted, with data collected from 244 startup founders across five municipalities using structured questionnaires. Statistical analyses included descriptive statistics, factor analysis, Pearson correlation, and multiple regression. Results indicate that Business Behavioral Practices, particularly innovation, proactiveness, and competitive aggressiveness, positively influence startup performance, while high risk aversion hinders growth. Regulatory Practices showed mixed influence, with strategic engagement supporting performance, but challenges remain in adaptation and awareness. Business Resource Management Practices emerged as the most significant predictor, with financial planning, human capital development, and supply chain coordination strongly linked to startup success. The study provides actionable insights for entrepreneurs to adopt more insight driven behavioral practices, for policymakers to strengthen regulatory frameworks that support startup growth, and for ecosystem enablers including incubators, accelerators, universities and NGOs to enhance resource-based support systems and capacity-building initiatives. The findings underscore that startup performance is shaped not just by external resources, but by how effectively local business practices are integrated into strategic execution.
Sustainable Development Goals
SDG-4: Quality Education
SDG-5: Gender Equality
SDG-8: Decent Work and Economic
SDG-9: Industry, Innovation and Infrastructure
SDG-10: Reduced Inequalities
SDG-17: Partnerships for the Goals