Michael Msendekwa – Local Government Training Institute, Tanzania

Omary Maanaka – Institute of Accountancy Arusha (IAA), Tanzania

Email: mwaifunga@nm-aist.ac.tz/ msendekwab@yahoo.com/ omary.mahnakah@iaa.ac.tz

Abstract: This paper examines the effect of Youth Development Fund (YDF) training and business support on community security in Mtwara Region, Tanzania. While YDF is widely recognized for providing youth loans, its non-financial interventions entrepreneurship training, mentorship, and advisory services are less understood despite their potential security implications. An explanatory sequential mixed-methods design was employed. Quantitative data were collected from 472 youth across six Local Government Authorities, and qualitative insights were drawn from 35 Key Informant Interviews and 5 Focus Group Discussions. A Training and Support Index (TSI) and Community Security Index (CSI) were constructed using Principal Component Analysis. Ordinary Least Squares and related models with district fixed effects were used to estimate the effect of TSI on CSI. Results show a positive and statistically significant relationship between TSI and CSI (β ≈ 0.273, p < 0.001), indicating that structured training, mentorship, and advisory support are associated with enhanced perceptions of safety, reduced petty crime, and stronger social cohesion. Qualitative findings corroborate that continuous, context-specific support improves business practices, self-discipline, and collaboration between youth and community institutions, while one-off or politicized trainings weaken impact. The study concludes that YDF’s non-financial services, when delivered inclusively and consistently, function as an effective capital-plus peace building mechanism. It recommends institutionalizing standardized training, mentorship, and monitoring systems to maximize security dividends from youth financing.

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.