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The main objective of this study was to assess the various factors that influence
participation of households in local economic development income generating
activities as well as poverty reduction in the study area of Mwanza region. Two
districts were purposively selected basing on the availability of households who
participated in local economic development projects. These districts are Misungwi
and Sengerema. To better inform, this study employed a sample size of 240
households to determine the factors which influences household participation in local
economy and poverty reduction.
The study revealed that most of the surveyed households participated in small
business with participation rate of 38 percent and income share of 61.4 percent of the
total income from household participation in local economy. Local economic
development projects perceived to be important economic activities for income
generation that assisted the households to finance some of their basic needs such as
education 28 percent, food 29 percent, medical services 22 percent and clothing
materials 21 percent. Tobit regression analysis was applied to investigate factors that
influence households’ decision to participate in local economic activities. The results
indicated that household participation in economic activities is significantly
influenced by land size, amount of loan, location, other income and age square of
household head.
For the improvement of the programme there is a need to invest in education and rural
infrastructure. Also, attention should be taken into account on the availability of
sustainable
markets,
capital
mobilization,
accessibility
of
loans,
women
empowerment and support on research activities in local economic development
programme. |
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