MICROCREDIT AND POVERTY ALLEVIATION THROUGH THE LABOUR MARKET: EVIDENCE FROM WOMEN MICROCREDIT CLIENTS IN TANZANIA

Dr. Boniface E.S. Mgonja; Dr. Boniface E.S. Mgonja; Dr. Charles S. Tundui

Authors

Dr. Boniface E.S. Mgonja
Dr. Boniface E.S. Mgonja
Dr. Charles S. Tundui

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Abstract

This study explores whether or not there are significant mean differences between new and mature enterprises supported by PRIDE Tanzania loans in terms of their ability to create jobs. We also explore the impacts of other factors likely to influence the ability of PRIDEsupported enterprises to create jobs. The ANCOVA results of 159 surveyed microcredit clients in Iringa town show that although microcredit access has enabled women to fund their enterprise operations, credit access does not seem to have enabled them to achieve job creation to any substantial level. This study instead establishes that much of a PRIDEsupported enterprise"s ability to create jobs seems to be related to other factors, such as duration of membership in the PRIDE program and whether or not the owner of the enterprise has control over enterprise-related decision making and over the use of the loan and the proceeds generated. Notwithstanding, a significant part of the variance in an enterprise"s ability to create jobs remains unexplained. These results suggest that microcredit alone is not a magic bullet in reducing poverty among women. Therefore, for any new policy to have a meaningful effect, a holistic approach needs to be brought to bear on the issues surrounding women ownership of micro and small businesses, women entrepreneurship, women"s empowerment, and poverty reduction.

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MICROCREDIT AND POVERTY ALLEVIATION THROUGH THE LABOUR MARKET: EVIDENCE FROM WOMEN MICROCREDIT CLIENTS IN TANZANIA. (2010). Global Journal of Human-Social Science, 10(3), -. https://socialscienceresearch.org/index.php/GJHSS/article/view/55

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