Small Enterprise Growth and the Rural Investment Climate: Evidence from Tanzania

This paper analyzes characteristics of nonfarm enterprises, their employment growth patterns, and constraints in doing business in rural Tanzania. Using unique survey data, we describe a low-return sector struggling to compete in a challenging business environment. However, about one-third of rural...

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Main Authors: Kinda, Tidiane, Loening, Josef L.
Format: Journal Article
Language:EN
Published: 2012
Subjects:
Online Access:http://hdl.handle.net/10986/4633
id okr-10986-4633
recordtype oai_dc
spelling okr-10986-46332021-04-23T14:02:18Z Small Enterprise Growth and the Rural Investment Climate: Evidence from Tanzania Kinda, Tidiane Loening, Josef L. Capital Budgeting Fixed Investment and Inventory Studies G310 National Government Expenditures and Related Policies: Infrastructures Other Public Investment and Capital Stock H540 Firm Performance: Size, Diversification, and Scope L250 Economic Development: Financial Markets Saving and Capital Investment Corporate Finance and Governance O160 Economic Development: Regional, Urban, and Rural Analyses Transportation O180 Transportation Systems: Government and Private Investment Analysis Road Maintenance, Transportation Planning R420 This paper analyzes characteristics of nonfarm enterprises, their employment growth patterns, and constraints in doing business in rural Tanzania. Using unique survey data, we describe a low-return sector struggling to compete in a challenging 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, suggesting that in particular access to finance, road infrastructure and rural cell phone communication is associated with employment growth. A major finding is that subjective and objective measurements of business constraints are broadly comparable. We discuss a number of factors that would help to unleash the full potential of private sector-led growth in rural areas. Marginal improvements of the rural investment climate matter for growth. 2012-03-30T07:28:57Z 2012-03-30T07:28:57Z 2010 Journal Article African Development Review/Revue Africaine de Developpement 10176772 http://hdl.handle.net/10986/4633 EN http://creativecommons.org/licenses/by-nc-nd/3.0/igo World Bank Journal Article Tanzania
repository_type Digital Repository
institution_category Foreign Institution
institution Digital Repositories
building World Bank Open Knowledge Repository
collection World Bank
language EN
topic Capital Budgeting
Fixed Investment and Inventory Studies G310
National Government Expenditures and Related Policies: Infrastructures
Other Public Investment and Capital Stock H540
Firm Performance: Size, Diversification, and Scope L250
Economic Development: Financial Markets
Saving and Capital Investment
Corporate Finance and Governance O160
Economic Development: Regional, Urban, and Rural Analyses
Transportation O180
Transportation Systems: Government and Private Investment Analysis
Road Maintenance, Transportation Planning R420
spellingShingle Capital Budgeting
Fixed Investment and Inventory Studies G310
National Government Expenditures and Related Policies: Infrastructures
Other Public Investment and Capital Stock H540
Firm Performance: Size, Diversification, and Scope L250
Economic Development: Financial Markets
Saving and Capital Investment
Corporate Finance and Governance O160
Economic Development: Regional, Urban, and Rural Analyses
Transportation O180
Transportation Systems: Government and Private Investment Analysis
Road Maintenance, Transportation Planning R420
Kinda, Tidiane
Loening, Josef L.
Small Enterprise Growth and the Rural Investment Climate: Evidence from Tanzania
geographic_facet Tanzania
relation http://creativecommons.org/licenses/by-nc-nd/3.0/igo
description This paper analyzes characteristics of nonfarm enterprises, their employment growth patterns, and constraints in doing business in rural Tanzania. Using unique survey data, we describe a low-return sector struggling to compete in a challenging 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, suggesting that in particular access to finance, road infrastructure and rural cell phone communication is associated with employment growth. A major finding is that subjective and objective measurements of business constraints are broadly comparable. We discuss a number of factors that would help to unleash the full potential of private sector-led growth in rural areas. Marginal improvements of the rural investment climate matter for growth.
format Journal Article
author Kinda, Tidiane
Loening, Josef L.
author_facet Kinda, Tidiane
Loening, Josef L.
author_sort Kinda, Tidiane
title Small Enterprise Growth and the Rural Investment Climate: Evidence from Tanzania
title_short Small Enterprise Growth and the Rural Investment Climate: Evidence from Tanzania
title_full Small Enterprise Growth and the Rural Investment Climate: Evidence from Tanzania
title_fullStr Small Enterprise Growth and the Rural Investment Climate: Evidence from Tanzania
title_full_unstemmed Small Enterprise Growth and the Rural Investment Climate: Evidence from Tanzania
title_sort small enterprise growth and the rural investment climate: evidence from tanzania
publishDate 2012
url http://hdl.handle.net/10986/4633
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