Publication: Tanzania Skills for Competitiveness in the Small and Medium Enterprise Sector
Date
2013-07
ISSN
Published
2013-07
Author(s)
Sabarwal, Shwetlena
Abstract
We examine the question of workforce
skills for small and medium enterprises (SMEs) in Tanzania
and find a mixed picture full of potential. On the one hand,
education access has expanded at all levels and a more
educated cohort is now entering the labor market - signaling
the availability of a more skilled workforce for SMEs. On
the other hand, acute shortages of secondary and
postsecondary graduates persist. Disturbingly, the quality
and relevance of primary education has come into question.
It is unclear whether increased access to primary education
is actually translating into acquisition of crucial basic
skills in the country. In light of this, it is unsurprising
that education attainment no longer appears to be a reliable
proxy for relevant skills, as perceived by employers.
Further, SMEs seem to have very little meaningful connection
with education institutions for recruitment of workers. A
related but equally concerning problem relates to the
culture of recruitment among SMEs in Tanzania. It is one of
passive hiring, wherein firms rely on networks and referrals
to identify employees instead of actively seeking them
through open advertising and links with education providers.
In this backdrop there is room for cautious optimism. SMEs
seem increasingly to realize and emphasize the importance of
workforce skills, even though, in relative terms, they are
likely to be significantly more pre-occupied with
infrastructure constraints. Interestingly, a large share of
firms that have recently failed consider inadequate
workforce skills to be a contributing factor of above
average importance to firm failure.
Link to Data Set
Citation
“Sabarwal, Shwetlena. 2013. Tanzania Skills for Competitiveness in the Small and Medium Enterprise Sector. © World Bank, Washington, DC. http://hdl.handle.net/10986/20127 License: CC BY 3.0 IGO.”