Swedish tribalism and Tanzanian entrepreneurship: preconditions for trust formation

This paper sets out to explore the preconditions for trust formation using a comparative approach. It takes an empirical point of departure, in two longitudinal and ethnographically inspired studies in the differing contexts of Sweden and Tanzania. The comparison reveals many similarities between the contexts with regard to the influence of informal institutions, as well as the significance of categories in trust formation. Perhaps surprisingly, trust and co-operation are not as low as could be expected in Tanzania, given the inadequate formal institutional environment, but instead, the greater need for co-operation evoked entrepreneurial initiatives that enabled the creation of trust. While the Swedish small-business owners could afford their ‘tribalism’, Tanzanians created trust in an entrepreneurial way. The importance of interventions to understand the local institutional framework is highlighted and it is argued that arranging business training, or similar events, is a fruitful way to facilitate the trust creation process in development contexts.

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