Kweka, JosaphatFox, Louise2012-03-192012-03-192011-11-01https://hdl.handle.net/10986/3650The household enterprise sector has a significant role in the Tanzanian economy. It employs a larger share of the urban labor force than wage employment, and is increasingly seen as an alternative to agriculture as a source of additional income for rural and urban households. The sector is uniquely placed within the informal sector, where it represents both conditions of informal employment and informal enterprise. This paper presents a case study on Tanzania using a mixed approach by combining both quantitative and qualitative analysis to examine the important role of household enterprises in the labor force of Tanzania, and to identify key factors that influence their productivity. Household enterprise owners are similar to typical labor force participants although primary education appears to be the minimum qualification for household enterprise operators to be successful. Access to location matters -- good, secure location in a marketplace or industrial cluster raises earnings - and access to transport and electricity is found to have a significant effect on earnings as well. In large urban areas, the biggest constraint faced by household enterprises is the lack of access to secure workspace to run the small business. Although lack of credit is a problem across all enterprises in Tanzania, household enterprises are more vulnerable because they are largely left out of the financial sector either as savers or borrowers. Although HEs are part of the livelihood strategies of over half of households in Tanzania, they are ignored in the current development policy frameworks, which emphasize formalization, not productivity. Tanzania has a large number of programs and projects for informal enterprises, but there is no set of policies and program interventions targeted at the household enterprise sector. This gap exacerbates the vulnerability of household enterprises, and reduces their productivity.CC BY 3.0 IGOACCESS TO CREDITACCESS TO FINANCEACCESS TO FINANCIAL SERVICESACCESS TO FORMAL CREDITACCESS TO LOANSAGE DISTRIBUTIONAGE GROUPAGRICULTURAL ACTIVITIESAGRICULTURAL INCOMEAGRICULTURAL PRODUCTIONBANK ACCESSBANK ACCOUNTBANK CHARGESBANK CREDITBANK LENDINGBANK OF TANZANIABARRIERS TO ENTRYBORROWINGBUSINESS ACTIVITIESBUSINESS ACTIVITYBUSINESS ASSOCIATIONBUSINESS ASSOCIATIONSBUSINESS CENTERSBUSINESS DEVELOPMENTBUSINESS DEVELOPMENT SERVICEBUSINESS OPPORTUNITIESBUSINESS OPPORTUNITYBUSINESS RISKBUSINESS STRATEGYCAPITALIZATIONCASH FLOWCOLLATERALSCOMMERCIAL BANKCOMMERCIAL BANKSCOMMUNITY BANKCOMMUNITY BANKSCORRUPTIONCRAFTSMENCREDIT ASSOCIATIONCREDIT CONSTRAINTCREDIT COOPERATIVECREDIT COOPERATIVESCREDIT GROUPCREDIT NEEDSCREDIT PROGRAMSCREDIT RISKCREDITORSCREDITSCROSS-SECTIONAL EVIDENCECURRENT ACCOUNTDAUNTING TASKDEBTDEFAULTERSDEMOGRAPHIC PROFILEDEPOSITDEPOSITSDEVELOPMENT BANKDEVELOPMENT POLICYDIVERSIFICATIONDRIVERSDRUGSEARNINGEARNING CAPACITYEARNINGSEARNINGS REGRESSIONSECONOMIC ACTIVITIESECONOMIC ACTIVITYECONOMIC DEVELOPMENTECONOMIC GROWTHECONOMIC OPPORTUNITIESEDUCATION LEVELEMPLOYEEEMPLOYEREMPLOYMENT OPPORTUNITIESEMPOWERMENTENTERPRISE DEVELOPMENTENTERPRISE GROWTHENTREPRENEURENTREPRENEURSENTREPRENEURSHIPENTREPRENEURSHIP DEVELOPMENTEQUAL OPPORTUNITYEXCHANGE RATEFARM ENTERPRISEFARM ENTERPRISESFARMERFARMERSFEMALE EMPLOYMENTFINANCESFINANCIAL INSTITUTIONFINANCIAL INSTITUTIONSFINANCIAL SERVICEFINANCIAL SERVICESFINANCIAL SUPPORTFIRM SURVEYSFORM OF COLLATERALGENDERGOVERNMENT INTERVENTIONSGOVERNMENT POLICIESGROUP LENDINGHOUSEHOLD ACCESSHOUSEHOLD ENTERPRISEHOUSEHOLD ENTERPRISESHOUSEHOLD INCOMEHOUSEHOLD SURVEYHOUSEHOLDSHOUSINGINFLATIONINFORMAL ECONOMYINFORMAL EMPLOYMENTINFORMAL SECTORINFORMAL TRAININGINFORMAL WORKERSINSURANCEINTEREST RATEINTERNATIONAL BANKINTERNATIONAL COMMUNITYJOB CREATIONJOB OPPORTUNITIESJOBSLABOR FORCELABOR FORCE SURVEYLABOR MARKETLABOR REGULATIONSLABOR SURVEYSLACK OF ACCESSLACK OF CAPITALLACK OF CREDITLAWSLOANLOAN CONDITIONSLOAN REPAYMENTLOCAL GOVERNMENTMALE PARTICIPANTMANDATESMARKET VALUEMERCHANTSMFIMFISMICRO ENTERPRISESMICROCREDITMICROFINANCEMICROFINANCE INSTITUTIONSMIGRANTMIGRATIONMONEY TRANSFERMONEYLENDERSNATIONAL COUNCILNATIONAL STRATEGYNATURAL RESOURCESNEW BUSINESSNEW ENTRANTSNON-FARM EMPLOYMENTNON-FARM SECTOROCCUPATIONOCCUPATIONSON-THE-JOB TRAININGPENSION FUNDPHYSICAL CAPITALPOLICY DISCUSSIONSPOLICY RESEARCHPOLICY RESEARCH WORKING PAPERPREVIOUS STUDIESPRIMARY EDUCATIONPRIMARY REASONPRIMARY SCHOOLPRIVATE CREDITPRIVATE SECTORPRIVATE SECTOR WAGEPRODUCTIVE EMPLOYMENTPRODUCTIVITYPROFITABILITYPROGRESSPUBLIC EMPLOYMENTPUBLIC TRANSPORTREAL ESTATEREGISTRATION REQUIREMENTSREGULATORY OVERSIGHTREGULATORY REGIMEREPAYMENTREPAYMENT PERIODSRETIREMENTRISK OF DEFAULTRURAL AREASRURAL BUSINESSRURAL DEVELOPMENTSAVINGSSAVINGS GROUPSSEED MONEYSELF EMPLOYEDSELF-EMPLOYMENTSERVANTSSKILL DEVELOPMENTSKILLS DEVELOPMENTSMALL BORROWERSSMALL BUSINESSSMALL BUSINESSESSMALL ENTERPRISESMALL ENTERPRISESSOCIAL SECURITYSOCIAL SERVICESSOURCE OF CREDITSOURCE OF INCOMESOURCES OF CREDITSOURCES OF FINANCESTART-UPSUPPLIERSSUSTAINABLE DEVELOPMENTTAX CODETECHNICAL EDUCATIONTOTAL EMPLOYMENTTOTAL FACTOR PRODUCTIVITYTRAINING PROGRAMSTRANSPORTUNINCORPORATED BUSINESSESUNIONUNPAID FAMILY WORKERSUNPAID WORKERSURBAN AREASURBANIZATIONVILLAGEVOCATIONAL EDUCATIONVOUCHERSVULNERABILITYWAGE EMPLOYMENTWAGE SECTORWAGESWORKERWORKING CAPITALWorld Bank10.1596/1813-9450-5882