Characterization of Enterprises Financed by Public and Private Credit Systems in Tanzania

Abstract: A study was conducted in purposefully selected 10 districts in two regions, involving 166 enterprises funded by the government scheme and 201 privately financed initiatives, using participatory tools to identify setbacks. Respondents comprised operators (263) and policy makers (30) for the government and 201 private initiatives. All credit schemes targeted lowly educated groups, comprising women (61.6%), youths (34.6%) and disabled people (3.8%). Approximately 51% of the enterprises focused in agriculture whereas, others mainly centered on petty businesses (36.8%) and motorbike riding (5.4%). However, all initiatives lacked affirmative strategies for disabled people and business linkages whereas, constitutions were also not operational post-government funding. Skills in entrepreneurship, soft skills, packaging, labelling and price setting were not provided in all schemes. Furthermore, traceability, due diligence and supervision mechanisms were poor and fund divergence was common in the government scheme. Default rates in government-financed enterprises were high but low (5%) in private credit schemes.