Small-scale Entreprises and Household Income Poverty Reduction in Tanzania

Abstract

The role of Retail Shops has been recognised as important by every nation around the world in poverty reduction. This study focused on assessing the contribution of Small-Scale Enterprises in household income poverty reduction in Moshi Municipality. The study aimed to assess the characteristics of small-scale enterprises owners, to examine sources of capital of small-scale enterprises for survivor and to describe the contribution of small-scale enterprises in household income poverty reduction. The study adopted a cross sectional research design whereby 60 respondents were sampled for data collection. The study used simple random sampling technique to get the retail shops to be involved in the study. Interview, questionnaire, and documentary review were used to collect data. Descriptive statistics, multiple response and linear regression were used to analyse data which were then presented in figures and tables in terms of frequencies and percentages. The study found that, sex, age, level of education, marital status, experience of the respondents as well as income of the respondents in TSHS were important attributes •in assessing the characteristics of the business owners in relation to household income poverty reduction. Also, personal savings, bank loans, and microloans determined sources of capital for small scale enterprises. The study concludes that education quality, food supply and healthcare quality were predictors of income poverty reduction with (p < 0.05). The study recommends that development actors including the government should provide training and seminars to small traders concerning income diversification so that small traders can be aware of their trading activities for sustainable income.