Economics
  • ISSN: 2155-7950
  • Journal of Business and Economics

Involvement in Informal Cross Border Trade: A Case of Women

Entrepreneurs in Tanzania

 
 
Lisa E. T. Mwakisale, Petro S. Magai
(University of Dar es Salaam, Dar es Salaam, Tanzania)
 
 
Abstract: The study investigates the issues regarding the involvement of women entrepreneurs in Informal Cross Border Trade (ICBT) and factors that affect trade. Trade base-line information on cross border activities was generated using questionnaires. Descriptive approach was involved supported by SPSS techniques for data analysis. The study revealed that, women being involved in ICBT mostly are single (widow or unmarried) with secondary education. The retail appears to be the most preferred trade as it is easy to travel with small quantities of goods. They always took their own initiative to start businesses due to perceived super profits in the neighboring countries and introduce their retail trade at borders. Confiscations of goods and sexual harassment for women seem to be the most challenges met by these traders. Therefore, the only way adopted/used to recover the confiscated goods is to pay bribes to authorities responsible. It is concluded that, the government of Tanzania should do the tax harmonization to encourage formalization and deal with factors that drive ICBT growth. These factors include gender, age, marital status and level of education. Thus, every effort should be made to enable women build trust in ICBT as the business contributes substantially to the country’s economy.
 
 
Key words: involvement; ICBT; women entrepreneurs; Tanzania
 
JEL code: F2




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