Introduction
This study is concerned with the assessment of the performance of the manufacturing industry and how the indigenous people as entrepreneurs are motivated to participate to support the ongoing industrialization movement in Tanzania.
The history of the manufacturing industry in the world.
The basic history of manufacturing, concerning our understanding today, can be traced back to ancient people of 5000–4000 BC, where the manufacturing of artefacts from raw materials -wood, rock, stone, metal and ceramics - formed part of their way of life.
Thus, manufacturing originated from the Latin word ‘manufactus’ to mean ‘made by hand’ Meanwhile, the concept of ‘manufacturing’, at present time, has advanced from mere use of the hand for production to the use of tools, machines, equipment, computer and even internet. In the modern context, manufacturing involves the design and development of products from raw materials using various processes including the use of hand tools, machinery or even computers.
The manufacturing sector is an aspect of the economy responsible for the conversion or transformation of raw materials into finished consumer goods or intermediate goods. Through conversion and transformation process in the manufacturing sector, products of different categories such as paper, tyres and tubes, sawmilling, bakery, textiles, garment, food, wood and furniture, and aluminium as classified by scholars and authors.
World history indicates that from the late eighteenth to the second half of the twentieth century, European economic growth has been closely associated with the relative development of industrial activity called industrialization .
Before the eighteenth century Europe was not industrialized. It was just as Tanzania today but through strategic analysis of different factors such as Research and Development, human capital, transfer of technology and effective use of natural resources, industrialization was possible and become a main driving force for economic growth and good living standards of people in Europe.
Types of manufacturing.
The industry encompasses different types of manufacturing industries including chemicals, edible goods, aerial commodities, marine and ground moving vessels such as boats, ships and aircraft and vehicles production. These varieties of products re depth depth depth assessment of different industrial, political, economic, social and environmental factors which are the major motivators to indigenous people to pause their best energies on engaging in manufacturing activities.
The manufacturing industry includes;
Manufacturing plays a major role in modern society, with everything from textiles to weaving to oil exploration and steel production falling under the industry. The concept of manufacturing is based on the idea of converting raw materials - organic or inorganic - into products that can be used by society. The Bureau of Labor Statistics classifies manufacturing into hundreds of departments.
(a) Clothes and clothing.
Companies that process raw cotton, cotton and flax into textiles are assigned the textile and textile industry. This also applies to the use of cotton and textile materials, outerwear, upholstery and bedding. The production of seamstresses and tailors belongs to the textile and textile industry. Synthetic materials such as polyester fall under chemical manufacturing. The material, not the commodity, is central to the definition of this industry.
(b) petroleum, chemicals and plastics.
The process of converting chemicals, coal, and crude oil into usable products, as well as the manufacture of Soap and other related products, resins, paints, pesticides, and pharmaceuticals, belong to this manufacturing industry. But rubber manufacturing is considered part of plastic processing. The manufacturing sector also includes the use of crude oil to produce certain plastics, as well as gasoline and other chemicals.
(c) Electronics, computers and transport.
Although these areas are closely related, they are generally considered separate manufacturing sectors. Many products in this manufacturing sector use electrical energy and all require a power source. In this industry, you will find all equipment and microprocessors, semiconductors, chips and all audiovisual equipment. The transportation sector is unique because it includes all vehicles, trains, and aircraft that are not subject to other sectors such as mining or chemical manufacturing.
(d) food production.
The inclusion of agriculture in production in modern society shows how agriculture has changed over the years, mimicking more of a food production factory than an organic farm of a century ago. The simplest industry of all industries includes all types of food production - from field to fork - as well as activities such as canning and cleaning.
(e) metal processing.
Metals is a heavy industry along with petroleum and chemical industries, while other industries are generally considered lighter industries or consumer-oriented industries. Steel production includes all types of steel, aluminium and steel processing, as well as fabrication, painting, coating and sealing.
(f) Wood, leather and paper.
Woodworking includes all types of floor or house production as well as sawing and rolling. In the leather sector,r you will find all leathers and fabrics, but the manufacture of scrap leather is for textiles and clothing. The paper making process is characterized by the purification of raw wood pulp into paper products of various types.
The manufacturing industry in Tanzania.
Industrialization in Europe, America and Asia has been used by Tanzania as a benchmark for industrial development since it gained its independence in 1961 but its industrial sector continued to operate poorly and slowly due to most foreign investors preferring to invest in Kenya because of the availability of better administrative infrastructures and during colonialism up to the mid of 1960s industrialization in Tanzania was driven in private sectors. From 1967 to the 1980s shifted from state to the present where a free economy is practised by both the state and private sectors. Manufacturing industry in Tanzania is managed and controlled by "Small Industries Development Organization " (SIDO)
The history of industrialisation in Tanzania.
Before the First World War, German colonizers established a company in mainland Tanzania named German East African Company. Its exports were twice as much as those of British East Africa which operated in the neighbouring British colony of Kenya. The second and first world Wars posed a significant number of constraints so that, the German East African company's performance suffered from political and financial crises to the extent that could not produce any more for external markets in comparison with the British in Kenya and Uganda. As a consequence of policy under the British colonial reign of power in 1961, industrial productions were focused on primary commodities. There were manufacturing industries, were productive factories of drinks, agro-processing, and consumables such as East African Breweries, Tanganyika Packers, British American Tobacco, Metal Box and Bata shoes which were under foreign ownership and largely produced for urban consumption and export while small scale catered for rural markets.
Manufacturing industry and indigenous people in Tanzania.
In principle, long time poorly and slowly operation of industries in Tanzania Understanding the motives that make indigenous entrepreneurs engage in the manufacturing industry is wide and one has to specify in a suitable category that indigenous entrepreneurs fit. The motive factors can be categorized internal or external to entrepreneurs themselves under this category’s motives are classified into four factors which are financial reward (extrinsic reward) independent or autonomy motives, personal growth intrinsic rewards and family security rewards.
Manufacturing industry motive factors in Tanzania.
Motive factors that influence indigenous entrepreneurs to engage in particular manufacturing industries are also classified as push factors and pull factors.
Push factors.
Push factors are the factors by which an entrepreneur has no way but only to choose the business to increase family income to sustain family, dissatisfaction with salary, basic job problems with finding an appropriate job and need for flexibility of family responsibility.
Pull factors.
on the other hand, the pull factor is the factor that attracts an entrepreneur to engage in a particular business. These factors are such the need for independence, self-actualization, need to increase the status quo and reputation in society.
Motives factors to indigenous entrepreneurs to engage manufacturing ringing industry can also be classified as necessity factors and opportunity-oriented factors.
Necessity factors.
Necessity factors are the factors by which entrepreneurs are forced to engage because they have no way to get basic needs. These factors are most motive factors in underdeveloped countries where individuals work only for hand to mouth needs, these factors are such the need to sustain a family with basic needs such as food, shelter and clothes, needs for security or protection. These factors are for need sustenance not for economic growth.
Opportunity oriented factors.
Opportunity oriented factors are the factors that attract and pull entrepreneurs to invest in a particular business these factors are so powerful and great impact on the economic status of individual society, and countries as a whole on this factor entrepreneurs are motivated to invest due to the availability of opportunity to invest and not depend on the status of entrepreneurs. This means if the opportunity is facilitated any individual can invest. These factors can be created and influence entrepreneurs who are also Creators and Innovators (the basic characteristics of successful entrepreneurs ). These factors are mostly found in developed countries where also most of the opportunities are densely available. These factors are such as needs for status or reputation, need to implement skills, knowledge, expertise, need to launch a venture, need to collaborate and desire for economic growth.
Promoting the manufacturing industry in Tanzania.
From this study and various publications, the best category of factors that motivate indigenous entrepreneurs to engage in the manufacturing industry as the type of business involving creativity and innovation should be opportunity oriented. This is because to support the ongoing industrialization movement in Tanzania, opportunities should be created to motivate indigenous entrepreneurs to start businesses in the manufacturing industry. Wherever these opportunities are exposed entrepreneurs tend to enter and start businesses. This study suggests exploring motives such as financial aids, knowledge and training, tools and equipment, infrastructures, protection, energy (electricity) and supportive business policy on the manufacturing industry to pull in indigenous entrepreneurs to start up their businesses in the manufacturing industry. This will as usual in developed countries impact greatly on the economic growth of the country through industrialization as described by Small Industries Development Organization " (SIDO)
Challenges facing the manufacturing industry in Tanzania.
On the other side, the manufacturing industry in Tanzania still faces challenges and limitations. On addressing statistics, Tanzania’s GDP has been increasing about 5-7% annually over the past decade, making it one of the fastest-growing economies in Africa. However, when it is related to population growth over the same period, we find that per capita GDP growth has averaged only 2.5–3.5% annually, which is not as outstanding as the initial percentage.
Furthermore, that growth impact on poverty reduction is quite insignificant, and understandably so. “While the highest potential for shared growth that leads to wealth generation and job creation lies in the agricultural and industrial sectors, the contribution of these sectors to the GDP has declined to the significant rates of 24% and 10% respectively compared to 46% and 9% during the 1990s”. The two sectors are quiet. dependent on each other; while the industrial sector, especially the agro-processing sub-sector, depends on agriculture for raw materials, the agricultural sector cannot advance without the development of the manufacturing sector.
Manufacturing industry and related sectors in Tanzania.
Fortunately, the government of Tanzania has realized this interdependence and has therefore put industrialization as its main development agenda. Realizing the forward and backward linkages with the agricultural sector, emphasis has been put on resource-based industrialization, with sub-sectors with direct linkage with the agricultural sector, receiving top priorities. According to the integrated industrial development strategy (IIDS), priorities include fertilizer and chemicals industries, agro-processing, textile industries, leather and leather goods, light industry and manufacturing, and the iron and steel industry. Another important input in the industrialization process is energy. When looking at cases of developing countries that achieved higher levels of industrialization in the last few decades, we can conclude that energy production and consumption should grow proportionately in concert with industrialization. The newly industrialized economies of Asia were not highly electrified when they embarked on their industrial development paths, but energy problems were addressed so that industrialization was not hindered by energy bottlenecks.
As Tanzania has land, people, leadership and rich in natural resources it becomes a problem to see indigenous entrepreneurs are less pulled In to engage in converting these valuable resources into manufactured goods. It is a problem that emanates and develop atom many factors such as corruption, lack of technology, lack of collective political will, lack of Research and Development, lack of innovative culture, lack of patriotism, poor administrative infrastructures, lack of easily accessible financial aid to indigenous entrepreneurs, lack of coordinated strategies etc. Tanzania entrepreneurs in this problem related to the slow pace of industrial death development since they gained independence in 1961. Indeed poor and slow industrial development is a persistent problem to Tanzania hinders improved living standard of Tanzanians and facilitates external countries to continue exploiting Tanzanian's natural resources hence, this draws a necessary cl ling for the country to find out the motivational factors which will motivate the indigenous people to engage specifically in the manufacturing industry which will lead to economic growth and development of a country.
The manufacturing industry has been the national vision since independence in 1961 but has not been attained yet until this moment despite the country having fertile land, people, leadership and richness in natural resources. This poorly and slow manufacturing industry development is an indicator that there must be internal and external factors hindering industrial development and that it needs motivational factors to boost indigenous entrepreneurs to employ their creativity and innovative businesses into the manufacturing industry in the country. Tanzania also has minerals and a large scale of cattle keep keeping yet imports gold chains and leather shoes. This lifestyle is a problem for individuals or groups and the public at large. Many studies done on manufacturing industries in Tanzania reported challenges to be hindering industrial growth rather than factors motivating the indigenous individuals, or groups of entire lifestyle invest in the manufacturing industry. Challenges are cross-cutting difficulties arising from partial analyses example: the factor is advertisement and promotion is a challenge and that arises when advertisement and promotion factor is not well analyzed.
Lack of Research and Development is also a great challenge. Lack of advancement and supportive policy is a factor to motivate the manufacturing industry.
This technical difference between the challenges (difficult) and factors (cause/ influence) marks the gap between the previous studies reviewed and this study which is focused on the assessment of factors motivating entrepreneurs in manufacturing.
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