We examine the question of workforceskills for small and medium enterprises (SMEs) in Tanzaniaand find a mixed picture full of potential. On the one hand,education access has expanded at all levels and a moreeducated cohort is now entering the labor market - signalingthe availability of a more skilled workforce for SMEs. Onthe other hand, acute shortages of secondary andpostsecondary graduates persist. Disturbingly, the qualityand relevance of primary education has come into question.It is unclear whether increased access to primary educationis actually translating into acquisition of crucial basicskills in the country. In light of this, it is unsurprisingthat education attainment no longer appears to be a reliableproxy for relevant skills, as perceived by employers.Further, SMEs seem to have very little meaningful connectionwith education institutions for recruitment of workers. Arelated but equally concerning problem relates to theculture of recruitment among SMEs in Tanzania. It is one ofpassive hiring, wherein firms rely on networks and referralsto identify employees instead of actively seeking themthrough open advertising and links with education providers.In this backdrop there is room for cautious optimism. SMEsseem increasingly to realize and emphasize the importance ofworkforce skills, even though, in relative terms, they arelikely to be significantly more pre-occupied withinfrastructure constraints. Interestingly, a large share offirms that have recently failed consider inadequateworkforce skills to be a contributing factor of aboveaverage importance to firm failure.
PDF
download
878987797
028-85220240
