Abstract:
Establishing business ventures is considered imperative for retirees since it is a source of income and it keeps them active after retirement. However, less is known on how businesses owned by public service retirees in Tanzania are faring up. The main objective of this study was to assess the performance of businesses owned by retired public servants in Dar es Salaam region, Tanzania. Specifically, the study sought todetermine the extent to which public service retirees engage in businesses; examine the motivation to engage in business; determine the performance of business and; examine factors affecting performance of businesses. A sample of 90 public servantretirees between 2012 and 2016 years involved in business activities was used. This sample was extracted from the sampling frame developed based on the list of public service retirees who attended retirement planning workshopsorganized by Tanzania Global Learning Agency (TaGLA). A survey questionnaire was used for data collection. Data was then subjected to descriptive and econometric analyses. More specifically, the probit econometric model was applied to estimate and test the hypothesized relationships of the study. The results have shown that retired public servants are involved into various income generating activities, the major ones being agriculture, consultancies and retail shops. It was also established that availability of capital, market, location, business knowledge and easiness to manage business are major factors that motivate retired public servants to engage into business activities. The study found that performance of businesses is generally not good. Majority of businesses made losses. Age and education level of retirees, source of capital and time for business preparation were found to influence the performance of businesses. In view of the above, it is reasonable to argue that business undertakings are important to retirees as they provide source of income and keep them engaged to avoid boredom. Based on the foregoing, the study recommends that social security sector players should come with initiatives meant to create awareness and prepare public service employees for life after retirement. It is recommended for the tirees to start preparations for business undertakings before retirement and not to use pension lumpsum as a source of business capital. It is also recommended that retirees in business should attend business management trainings to improve their business knowledge and skills.
