Effects of Youth Development Fund on the Establishment and Growth of Youth-Led Enterprises in Mpwapwa District, Tanzania

Angelina Harun Neke & Laurent Kaburire
St John’s University of Tanzania
Email: angelinaneke0@gmail.com

Abstract: Youth unemployment is still a significant issue that many countries throughout the world are facing. On the plus side, the globe has realized that sustained support of entrepreneurial endeavors, which lead to significant economic and social change, in addition to formal employment. In turn, this study investigated the impact of the Youth Development Fund (YDF) on youth-led enterprises in Mpwapwa District, Tanzania. The study aimed to understand how access to YDF resources affects the establishment of youth-led enterprises, business growth, market penetration, employment creation, and youth economic empowerment. The research utilized a mixed-methods approach and involved a total of 84 respondents from the Mpwapwa District, Tanzania. The findings showed that access to the Youth Development Fund fluctuated over the past five years, with improvements recently observed due to improved administrative procedures. Additionally, the findings highlighted that, despite the YDF’s positive impact on youth-led enterprises, most of the established enterprises remained small-scale, with limited capacity to create jobs or penetrate wider markets. Moreover, challenges such as inadequate training, weak market linkages, and competition were found to be hindering the long-term business sustainability. The study concluded that, while the YDF plays an important role in fostering youth entrepreneurship in Mpwapwa District, reforms are needed to strengthen transparency, expand enterprise growth, and improve market access. It recommends that the government and local authorities should enhance capacity-building, provide follow-up support, and establish structured partnerships to improve the fund’s effectiveness.