Given their disruptive nature, startups tend to transform from one product, service, or business model to another, leading to a potential for business closure. While relatively straightforward, this process could be expensive and time-consuming due to various fees, tax clearance requirements, and potential delays. Therefore, streamlining the voluntary closure and insolvency processes and addressing these procedures’ high costs and time- consuming nature would help youth entrepreneurs transition more smoothly from one venture to another. Currently, there is no local product protection policy against imported foreign products for the protection of nascent/start-up industries and to promote fair competition. This poses a challenge to youth enterprises that must compete. It is understandable, however, that this challenge pertains to the realms of trade policy. The degree of protectionism and openness typically finds its direction through permissible tariff configurations within the framework of multilateral trading systems (Tanzania being a constituent of the World Trade Organization [WTO]) and regional pacts (which are part of exceptions from WTO Regulations), such as East African Community, South African Development Community, and presently African Continental Free Trade Area. A structure is in place to safeguard specific vital or vulnerable sectors of the economy, like dairy, sugar, and rice. In Tanzania, the policy debates might revolve around implementing such tools within the context of Trade Policy. An Entrepreneurship or Small Enterprises Act is needed to promote entrepreneurship and micro-, small, and medium enterprise development and support the National Steering Committee on Inclusive Entrepreneurship Development to coordinate and monitor the implementation of the National Entrepreneurship Strategy (NES), 2017 and Action Plan. There is an absence of effective mechanisms to coordinate entrepreneurship development in the country. For instance, there is a need to establish private sector-led working groups to support the implementation of the NES. There is no Social Entrepreneurship or Social Enterprises Act. There is an absence of platforms or public-private dialogue mechanisms on youth entrepreneurship and, therefore, space for the voice of young entrepreneurs. The GoT has not formulated a distinct agenda for start-up research and development; therefore, innovation is not prioritized.
There is a lack of targeted support for applied research and entrepreneurial spin-offs, including cross-border innovation and technology exchange. The local private sector is not sufficiently involved in initiatives to promote the national entrepreneurship agenda. There is an absence of public-private matching funds for innovation, high-tech, and rapidly growing micro, small, and medium enterprises. The branding guiding policy for seaweeds is lacking, which causes weak market development. A policy that targets the cloves sub-sector in Zanzibar does not exist despite being the major export crop for Zanzibar.
2.3.3. Areas for Policy Makers to Prioritize
The survey team identified areas that respondents would like policymakers to prioritize based on the existing pressing policy-related challenges that face youth enterprises, as summarized in Table 3. [79]
Table 3. Priority Areas for Policy Making
Policy Area
Challenges Facing Youth Entrepreneurs
Improving access to finance
Inappropriate and/or lack of youth- friendly financial products (e.g., special products to address “unique” needs of youth, tailored financial products for early-stage businesses, special guarantee schemes for youth, and flexible interest rate regime, simplified application process eligibility criteria).
Low financial literacy levels. High credit and collateral requirements.
Promoting awareness and networking
Negative societal attitudes toward entrepreneurship. Insufficient promotion of role models. Underdeveloped young entrepreneurs networks. Insufficient promotion of entrepreneurship opportunities. High business registration costs. Complex regulatory procedures. Distrust in the regulatory environment. Limited knowledge of regulatory issues, particularly copyright, patent, or trademark regulations; low awareness of networking options on issues around intellectual property rights (e.g., patents) that are under the public domain (thus, youth can utilize).
Optimizing the regulatory environment
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Youth Enterprise Policy Analysis Report
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