Kinda, TidianeLoening, Josef L.2012-05-312012-05-312008-07https://hdl.handle.net/10986/6824This paper analyzes characteristics of nonfarm enterprises, their employment growth patterns, and constraints in doing business in rural Tanzania. Using unique survey data, the authors describe a low-return sector struggling to compete in a difficult business environment. However, about one-third of rural enterprises are growing fast. Most enterprises engage in agricultural trade. Due to a rapidly growing agricultural sector in recent years, limiting demand-side constraints, rural enterprise constraints in Tanzania mainly operate from the supply side. This suggests that, in particular, access to finance, road infrastructure, and rural cell phone communication is correlated with employment growth. A major finding is that subjective and objective measurements of business constraints are broadly comparable. The authors discuss a number of factors that would help to unleash the full potential of private sector-led growth in rural areas. The findings show that marginal improvements in the rural investment climate matter for growth.CC BY 3.0 IGOACCESS TO FINANCEACCESS TO FINANCIAL SERVICESACCESS TO FORMAL CREDITACCESS TO MARKETACCESS TO MARKETSACCESS TO MONEYACCESS TO RURAL FINANCEACCESS TO SERVICESACCESSIBILITYACCOUNTINGAGRICULTURAL ACTIVITIESAGRICULTURAL COMMODITIESAGRICULTURAL GROWTHAGRICULTURAL INCOMEAGRICULTURAL INPUTSAGRICULTURAL PRODUCTAGRICULTURAL PRODUCTIONAGRICULTURAL PRODUCTIVITYAGRICULTURAL PRODUCTSAGRICULTURAL SECTORAGRICULTURAL TRADEAGRICULTURAL WAGEAGRICULTURAL WAGESBANK ACCESSBANK LOANBANKSBARRIERS TO ENTRYBIASESBRIBEBUSINESS ACTIVITIESBUSINESS ENVIRONMENTBUSINESS EXPERIENCEBUSINESS FAILUREBUSINESS OPERATIONSCALCULATIONSCAPITALIZATIONCOMMERCIAL FARMSCOMMUNITY GROUPCOMMUNITY LEADERSCONFLICTCONTRACT ENFORCEMENTCONTRIBUTIONCOOPERATIVE BANKCOOPERATIVESCORRUPTIONCOST INCREASESDIVERSIFICATIONDROUGHTSEARNINGSECONOMETRICSECONOMIC ACTIVITIESECONOMIC DEVELOPMENTECONOMIC GROWTHECONOMIC REFORMSEMPLOYMENT GROWTHEMPLOYMENT INCOMEENFORCEMENT MECHANISMSENTERPRISE DEVELOPMENTENTERPRISE GROWTHENTERPRISE SIZEENTREPRENEURIAL ACTIVITIESENTREPRENEURIAL ACTIVITYETHNIC GROUPSEXCHANGE RATEEXPANSIONSEXPENDITURESEXPORT CROPSFAMILY MEMBERFARM ENTERPRISEFARM INCOMEFARM SECTORFEMALE ENTREPRENEURSHIPFEMALE PARTICIPATIONFINANCE ACCESSFINANCIAL CONSTRAINTSFINANCIAL INSTITUTIONSFINANCIAL SERVICEFINANCIAL SERVICESFINANCIAL SUPPORTFIRM SIZEFIRMSFIXED ASSETSFOOD CROPSFOOD POLICYFORMAL FINANCIAL SERVICESGENDERHOUSEHOLD BUDGETHOUSEHOLD INCOMEHOUSEHOLD SURVEYHOUSEHOLD WELFAREHOUSEHOLDSHUMAN CAPITALINCOME GROWTHINCOME RISKINCOME SOURCESINFLATIONINTERNATIONAL BANKINVESTMENT CLIMATEINVESTMENT CLIMATE ASSESSMENTJOB CREATIONJOB OPPORTUNITIESLABOR FORCELABOR MARKETLABOR MARKETSLACK OF ACCESSLAWSLIMITED ACCESSLIMITED ACCESS TO FINANCEMACROECONOMIC STABILITYMACROECONOMIC STABILIZATIONMANUFACTURING ENTERPRISEMARKET DEMANDMARKET DEVELOPMENTMARKET INFORMATIONMARKETINGMICRO-ENTREPRENEURSMICROENTERPRISESMICROFINANCEMONEY LENDERMONEY LENDERSMONEYLENDERSNATURAL RESOURCESNEW BUSINESSNEW BUSINESSESOPERATING COSTSPOLITICAL ECONOMYPOORPOOR ECONOMIC GROWTHPOOR PEOPLEPOVERTY REDUCTIONPRIMARY EDUCATIONPRIVATE BANKSPRIVATE ENTREPRENEURSPRIVATIZATIONPROPERTY RIGHTSPROSPERITYPUBLIC EXPENDITURESPUBLIC INVESTMENTSPUBLIC TRANSPORTPUBLIC WORKSQUESTIONNAIRESRAPID GROWTHREGRESSION ANALYSISRESEARCH ASSISTANCERURALRURAL AREARURAL AREASRURAL BUSINESSESRURAL DEVELOPMENTRURAL ECONOMYRURAL EMPLOYMENTRURAL ENTERPRISESRURAL ENTREPRENEURSRURAL FINANCERURAL FINANCIAL INSTITUTIONRURAL FINANCIAL INSTITUTIONSRURAL HOUSEHOLDRURAL HOUSEHOLDSRURAL INCOMERURAL INVESTMENTRURAL LABORRURAL LABOR MARKETRURAL MARKETRURAL POORRURAL POPULATIONRURAL POVERTYRURAL POVERTY REDUCTIONRURAL SERVICESRURAL TOWNSRURAL TRADERURAL WAGESSALESALESSALES GROWTHSALES REVENUESALES REVENUESSECONDARY EDUCATIONSELF-EMPLOYMENTSMALL BUSINESSSMALL ENTERPRISESMALL ENTERPRISESSMALL FIRMSMALL FIRMSSOCIAL SERVICESOURCE OF INCOMESOURCES OF INCOMESTART-UPSTART-UP CAPITALSTART-UPSSTATE OWNED ENTERPRISESSTATISTICAL ANALYSESSUB-SAHARAN AFRICATAX CONSTRAINTSTAXATIONTRANSACTIONTRANSACTION COSTSTRANSITION ECONOMIESTRANSPORTTRUST FUNDSURBAN AREASURBANIZATIONVILLAGEVILLAGESWOMANWorld Bank10.1596/1813-9450-4675