The Involvement of Retired Public Workers in Entrepreneurship in Tanzania

Introduction

The involvement of retired public workers in entrepreneurship is one of the topical issues in the field of entrepreneurship. Although one might expect public service retirees to relax and enjoy the remaining part of their lives, a large portion of retirees are now participating in entrepreneurship activities in their old age. As the literature suggests, push and pull factors are the major motivation for individuals to attempt entrepreneurship. In the same vein, the involvement of retirees from public service raises the question of why they venture into entrepreneurship after completing their various lifelong careers. The literature also suggests that the recent increase in retirees' business ventures makes the investigation into this phenomenon relevant and valid. Thus, investigating the factors that compel and motivate retirees to take up entrepreneurship is the main purpose of this chapter. In addition, the authors have further investigated and described the preferred entrepreneurial choices as well as the challenges encountered by retirees in the course of initiating and managing their ventures. In that regard, this chapter aims to;

• 1.

  Explain the entrepreneurial activities preferred by retired public workers

• 2.

  Describe the factors that motivate or compel retired public workers to initiate entrepreneurial ventures

• 3.

  Determine the challenges facing retired public workers in the course of operating their business entities

Background

Recently, there has been a growing interest in initiating entrepreneurial ventures among public servants after retirement (Namala and Milanzi, 2020). The authors further assert that retired workers are ready to use their savings and the lump sum payments they receive as pensions to finance their ventures. Participation in entrepreneurship activities among retired employees is intended to enhance their social and economic welfare. Individual demands for improved social and economic welfare represent an unlimited phenomenon (Triker, 2009). Every human being, regardless of age, aspires to live in a stable economic situation. According to Devereux (2002), achieving social and economic well-being necessitates direct and active involvement in a remunerative production that generates revenue for people. As the number of retired populations is increasing year after year, the number of retirees who demand to sustain their living standards through entrepreneurial undertakings is also escalating. As of today, it is estimated that people aged 60 years or more account for 50 percent of the world's population and approximately 342 people lack income security (Mushi, 2018). The authors further contend that the majority of the retired population in developing countries is living below the poverty line. As such, they represent a huge burden, both for the government and their own communities. Building on this, participation in entrepreneurship activities has become necessary for many retirees in developing countries. As Bukwimba (2016) notes, more than 51% of retirees still depend on pension payments to earn their living, while the remaining portion obtains their income through other sources, with entrepreneurship being predominant.