Foreign entrepreneurs’ use of network in Tanzania : understanding an entrepreneurial process through network, culture and knowledge

摘要

This thesis is an attempt to understand how networking can be used as a tool to accomplish success in a third world country for foreign entrepreneurs. By using a theoretical framework which includes the terms “Networking”, “Culture” and “Knowledge”, the goal is to discuss how foreign entrepreneurs alter their use of networking through the different stages of an entrepreneurial process. The thesis is limited to its presentation of one case study of a business run by two Norwegians and one native Tanzanian.The case study is the result of interviewing, observing and interacting with members of Paka Adventures Ltd, a tourism business established by two Norwegians with the help from their native Tanzanian friends. Through the experiences and stories of the entrepreneurs and other key members of the business, the case study will present empirical data in the form of a narrative story, which will describe the entrepreneurial process of Paka Adventures, from the stage where the idea of the business emerged and up to their current stage of growth and development. The narrative will include challenges of doing business in Tanzania, and how different conflicting situations were solved through the use of networking.The analysis argues how networks change during an entrepreneurial process, and discuss its use to secure a business and its resources in the entrepreneurial culture of Tanzania. The main findings, discussed within the range of this thesis’ theoretical framework, enhance the qualities a network provides entrepreneurs when starting a business in an unknown culture. Essentially, distrust in the general business culture would seem to force the foreign entrepreneurs to use networking as a tool to gain security. This thesis will also provide an understanding on how small businesses, in the start-up stage of doing business in Tanzania, can achieve entrepreneurial success through including elements of culture and knowledge through social capital.