During Colonial Era
During colonial days, totalitarian rule continued. Indigenous
productive activities were suffocated by colonial regulations and competition
from imports. Throughout the colonial period, a consistent policy was adopted
to keep the colony as a producer of raw material for use in industries in
Europe, and, consequently, dependent on manufactured goods from colonial
masters. There was also a deliberate policy to limit participation of
indigenous Africans, and to a lesser extent, Asians, in business activities.
Thus, manufacturing, importing and exporting, banking and insurance were mainly
done by Caucasians. Asians, most of who had been brought in to work as clerks
during railway construction projects in the early 1960s, were encouraged to
operate as sub-wholesalers and retailers. Arabs operated mainly as retailers.
Africans participation in business was restricted to very small
firms, such as dukawalas (tiny shops). Except for a few offspring of chiefs,
the few Africans who went to colonial schools received only elementary
education to enable them to understand clerical and other very low duties in
the public and private sector. Therefore, at independence, the indigenous
population was just as marginalized in their own country as the economy was in
the international market. For example, in 1961, about 34,581 Africans and 7,500
Asians held retail trading licenses, but Asians handled well over two-thirds of
the trade volume (Rweyemamu, 1979).
Economic and social marginalization of Africans was part of a
deliberate colonial policy of disempowering the indigenous population and hence
making it easy to rule. Africans were made to believe that they were
“naturally” inferior to other races and everything African was backward.
Naturally, this environment had a negative effect on development of entrepreneurial
values and competencies, including self-esteem, a belief in the ability to make
things happen, confidence, initiative, aggressiveness, etc.
However, the social and economic context created in various parts
of the country presented different opportunities for the development of
entrepreneurship. For example, European missionaries and farmers settled in
some mountains areas of the country (Kilimanjaro, Tukuyu, Bukoba, Songea etc),
where they introduced Christianity, education and commercial agriculture. They
also encouraged the local population to cultivate commercial crops and to
establish cooperatives. This development not only inspired the local population
and exposed to new desires and opportunities, but it also led to land shortages
which forced them to think and act in non-traditional ways in pursuing of
livelihoods and “success.” Logically, the meaning of “success” to an offspring
of a peasant farmer labouring every year for family subsistence will be vastly
different from another who has experienced commercial farming, is aware of the
possibilities and benefits of formal education and at the same time is aware
that he will not have enough land even for his family’s subsistence as he grows
up.
