Principled Sustainable Entrepreneurship – The Case of Trust-based and Emotional Intelligence Approaches in Tanzania

Abstract

The chapter evaluates trust-based and emotional intelligence (EI) approaches in Tanzania’s informal sector entrepreneurs, from mali kwa mali (barter trade), mali kauli (trust-based credit) to collective or technology-based upatu (revolving credit). It analyses both vertical and horizontal trust, and the depth of linkage to growth and sustainability of entrepreneurship in the informal sector.

The chapter invokes experiences of informal sector entrepreneurs including itinerant hawkers (machinga), food vendors (mama lishe or mama ntilie) and motorcycle drivers (bodaboda). The unique trust-based approaches mali kwa mali and mali kauli in entrepreneurial undertakings extends from colonial times to post economic liberalisation and contemporary Tanzania. Mali kauli, a creative traditional credit practice, is a unique approach that facilitates and sustains micro-retail sub-sector and livelihoods in urban and rural Tanzania. Although the objective remains business profitability, sustainability of entrepreneurial ventures does not depend on it alone. Trust and EI are well invested in these approaches.

The chapter draws from past work on managing in the informal economy to derive theoretical and practical implications, and how trust and EI plays a role in the Tanzanian informal entrepreneurial circles.

Citation

Mhando, P. and Mhando, L. (2022), "Principled Sustainable Entrepreneurship – The Case of Trust-based and Emotional Intelligence Approaches in Tanzania", Ogunyemi, K., Ogunyemi, O. and Anozie, A. (Ed.) Responsible Management in Africa, Volume 2: Ethical Work and Sustainability, Emerald Publishing Limited, Leeds, pp. 107-122. https://doi.org/10.1108/978-1-80382-493-220221015