The entrepreneurial landscape in Tanzania is dynamic, yet persistent challenges hinder business growth and sustainability. Existing literature often lacks in-depth, contextualised insights into the lived experiences of entrepreneurs operating within this specific ecosystem. This study aims to explore the nuanced challenges and opportunities faced by Tanzanian entrepreneurs, seeking to understand their strategies for navigating the local business environment and identifying key leverage points for support mechanisms. A qualitative, interpretive design was employed, using semi-structured interviews with 28 small and medium enterprise owners across three regions. Data were analysed using reflexive thematic analysis to identify patterns and construct meaning. A dominant theme was the critical, yet double-edged, role of informal networks for resource mobilisation and market access, cited by over 80% of participants as essential for survival. However, these same networks were frequently described as unreliable for scaling operations, creating a dependency that limited formal growth. The findings reveal a complex interdependency between informal support structures and formal business aspirations, suggesting that entrepreneurial success is contingent on effectively bridging these two spheres rather than choosing one over the other. Policymakers and development practitioners should design interventions that formalise and strengthen existing informal networks, creating hybrid support models that provide reliability while retaining contextual relevance. Financial literacy programmes should be integrated with network-building initiatives. entrepreneurship, business environment, informal networks, qualitative research, East Africa, SME development This paper provides a novel, empirically-grounded framework of the 'informal-formal nexus' as a central dynamic in Tanzanian entrepreneurship, moving beyond simplistic dichotomies to inform more effective policy and support programmes.
Mwinyi et al. (Wed,) studied this question.