A research report submitted in partial fulfilment of the requirements for the Bachelor degree of Social Science in Economics Population and Development of Mzumbe University
The main objective of this study was to assess the contribution of MSEs towards poverty alleviation. The study was guided with the specific objectives which are; assess the factors that influence poverty alleviation effect of micro and small enterprises assess the extent to which micro and small enterprises have contributed to poverty alleviation and identify the challenges that faced the micro and small enterprises towards poverty alleviation. The study was conducted in Mwanza City Council, the study was employed a sample of 100 MSEs Owners from Mwanza City Council. The study employed primary data collection which includes a questionnaire; also the study used cross-sectional study design. The results from the study used probit model point out that income from business, access technology, and access to market, education level and business experience, marital status to influence poverty alleviation. Also, the results show that MSEs Owners have challenges faced such as inadequate capital to support their operations, limited to access to market, inadequate support from the government, lack of access to technology, inadequate managerial skills. Therefore the study recommended that the respective government authorities should improve the strategies for providing business education to all entrepreneurs and emphasizing to attend on business seminars that will build the human capacity and discover the opportunities around and how to use them and benefit from them. The study found that marketing support is very important for any enterprises to need to be supported in marketing its product which could be achieved by facilitating in participation in trade fairs and exhibitions, organizing a buyer-seller meet, giving publicity, tying up with larger enterprises and developing common brand and that would help to reduce poverty.