Entrepreneurship education and financial performance of graduate-owned SMEs in Tanzania

Small and medium-sized enterprises (SMEs) rely on innovation and technology driven by entrepreneurship. Being entrepreneurial enables SME owners to transform business ideas into innovative and profitable goods or services and be flexible in response to business environmental changes. Although entrepreneurship education programs at universities are intended to develop the entrepreneurial competences necessary for successful graduate entrepreneurs, many graduate-owned SMEs are failing, resulting in high exit rates. This study assesses the contribution of university entrepreneurship education programs in producing successful entrepreneurs through the performance of graduate-owned SMEs. A cross-sectional survey design was utilized to collect data from 228 graduate entrepreneurs in Tanzania using online structured questionnaires. Partial least squares structural equation modelling was employed to clarify the causal-effect relationships among the constructs of the study. Findings reveal that, all components of entrepreneurship education, that is, entrepreneurship content, entrepreneurship pedagogy and entrepreneurship development support positively and significantly influence financial performance of graduate-owned SMEs. Based on the results, it is suggested that universities should prioritize comprehensive entrepreneurship curricula that include theory, practical applications, and real-world experiences. Additionally, fostering an entrepreneurial ecosystem with support, mentorship, and networking opportunities is crucial for empowering aspiring entrepreneurs, a critical aspect for economic advancement.