Class Year

2014

Date

4-22-2014

Document Type

Thesis

Degree Name

Bachelor of Arts (BA)

Department or Program

Economics

Second Department or Program

International Relations

First Advisor

Amanda Felkey

Second Advisor

James Marquardt

Third Advisor

Robert J. Lemke

Fourth Advisor

Les Dlabay

Abstract

This paper explores the effects of microfinance on the success of female entrepreneurs in Tanzania. To do so, the paper first looks at the political and economic transitions of Sub Saharan Africa during the decolonization period. I discuss use of socialist policies and the impact they had on the Tanzanian economy, leaving it impoverished to this day. Next, I examine two specific components of microfinance, membership in a Savings and Credit Co-Operative Society (SACCOS) and receipt of a microloan, which are current methods to alleviate poverty in Tanzania. Using data from the 2010-11 Tanzania National Panel Survey (TZNPS), I analyze the impact microfinance policies have had on three measures of entrepreneurial success – average monthly net income, months of business operation, and the presence of employees outside of the household. I find microfinance has a positive effect on entrepreneurs, suggesting that heightened efforts of efficient implementation would benefit the Tanzanian economy.


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