Empowering Youth in Tanzania: Entrepreneurship for Economic Development and Unemployment Reduction
Abstract
High unemployment rates present significant challenges to economies and societies globally. In regions such as South Asia and Latin America, rising income inequality exacerbates youth unemployment, prompting many young people to pursue entrepreneurship as a viable path to economic empowerment. In these areas, Micro, Small, and Medium Enterprises (MSMEs) play a pivotal role in fostering economic development and creating job opportunities, highlighting a global trend of leveraging entrepreneurship to combat unemployment and stimulate economic growth. In Africa, rising income inequality exacerbates youth unemployment, prompting many young people to pursue entrepreneurship as a viable path to economic empowerment. This study examines unemployment and entrepreneurship in Tanzania and the role of MSMEs in economic growth and job creation. Incorporating analysis from academic studies, government reports, and international development publications, the study uncovers trends, challenges, and opportunities in Tanzania's entrepreneurial ecosystem. The findings highlight entrepreneurship's contribution to GDP growth, job creation, and economic diversification. MSMEs are pivotal in generating employment, improving living standards, and stimulating local economies. The study emphasises the importance of entrepreneurship education in equipping individuals with the necessary skills and fostering an entrepreneurial mindset. Additionally, it identifies key factors affecting self-employment and underscores the positive outcomes of youth entrepreneurship initiatives. These initiatives enhance economic participation and inclusivity by addressing challenges such as limited access to capital and socio-cultural constraints. The study concludes that while entrepreneurship significantly contributes to economic development and unemployment reduction in Tanzania, the government needs to implement supportive policies to facilitate access to finance, streamline regulatory processes, and leverage digital technologies
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