Economic Performance of Enterprises under Economic Empowerment Schemes in Tanzania: Comparative Insights from Mara and Arusha Regions

Cornel Anyisile Kibona, Joel Matiku Joshua, Lekumok Kironyi, Roselyne Alphonce, Edward Mbwambo, Lesakit S.B Mellau and Dominic Kambarage
Additional contact information
Cornel Anyisile Kibona: Mwalimu Nyerere University of Agriculture and Technology, Box 976, Musoma, Tanzania.
Joel Matiku Joshua: Mwalimu Nyerere University of Agriculture and Technology, Box 976, Musoma, Tanzania.
Lekumok Kironyi: Mwalimu Nyerere University of Agriculture and Technology, Box 976, Musoma, Tanzania.
Roselyne Alphonce: Sokoine University of Agriculture, Chuo Kikuu, Box 3000, Morogoro, Tanzania.
Edward Mbwambo: Mwalimu Nyerere University of Agriculture and Technology, Box 976, Musoma, Tanzania.
Lesakit S.B Mellau: Mwalimu Nyerere University of Agriculture and Technology, Box 976, Musoma, Tanzania.
Dominic Kambarage: Sokoine University of Agriculture, Chuo Kikuu, Box 3000, Morogoro, Tanzania.

Post-Print from HAL

Abstract: Economic Empowerment Schemes (EES) play a critical role in inclusive growth and poverty reduction in developing countries. This study evaluated the economic performance of micro, small, and medium-sized enterprises (MSMEs) funded under Tanzania's Local Government Authority (LGA) revolving loan schemes using cross-sectional data from 495 beneficiaries across Arusha and Mara Regions. It applied both quantitative and qualitative methods through interviews and structured questionnaires. Using descriptive statistics, Net Profit Margin (NPM), Return on Investment (ROI), and Benefit-Cost Ratio (BCR), the study found an average ROI of 538.7% and BCR of 6.4 across enterprises, indicating enhanced viability post-loan. Profitability rose by an average of 38%, with significant gains in crop production, livestock keeping, petty business, transport, and construction sectors. Employment generation increased by 42%, with higher female participation, and revenue growth averaged 33% post-loan. Business expansion was evident, with 61% of enterprises formalizing operations and acquiring new assets, particularly among women and youth in both regions. These results underscore the effectiveness of EES in improving profitability, viability, and employment generation while revealing regional disparities in outcomes. Post-loan support, including market linkages and training, is essential to sustain growth and reduce regional disparities in economic outcomes in Tanzania.

Date: 2025-07-19
References: Add references at CitEc
Citations:

Published in Journal of Economics, Management and Trade, 2025, 31 (8), pp.24-45

There are no downloads for this item, see the EconPapers FAQ for hints about obtaining it.

Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:hal:journl:hal-05172197

Access Statistics for this paper

More papers in Post-Print from HAL
Bibliographic data for series maintained by CCSD ().