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Small Enterprise Growth and the Rural Investment Climate : Evidence from Tanzania

ACCESS TO FINANCE ACCESS TO FINANCIAL SERVICES ACCESS TO FORMAL CREDIT ACCESS TO MARKET ACCESS TO MARKETS ACCESS TO MONEY ACCESS TO RURAL FINANCE ACCESS TO SERVICES ACCESSIBILITY ACCOUNTING AGRICULTURAL ACTIVITIES AGRICULTURAL COMMODITIES AGRICULTURAL GROWTH AGRICULTURAL INCOME AGRICULTURAL INPUTS AGRICULTURAL PRODUCT AGRICULTURAL PRODUCTION AGRICULTURAL PRODUCTIVITY AGRICULTURAL PRODUCTS AGRICULTURAL SECTOR AGRICULTURAL TRADE AGRICULTURAL WAGE AGRICULTURAL WAGES BANK ACCESS BANK LOAN BANKS BARRIERS TO ENTRY BIASES BRIBE BUSINESS ACTIVITIES BUSINESS ENVIRONMENT BUSINESS EXPERIENCE BUSINESS FAILURE BUSINESS OPERATIONS CALCULATIONS CAPITALIZATION COMMERCIAL FARMS COMMUNITY GROUP COMMUNITY LEADERS CONFLICT CONTRACT ENFORCEMENT CONTRIBUTION COOPERATIVE BANK COOPERATIVES CORRUPTION COST INCREASES DIVERSIFICATION DROUGHTS EARNINGS ECONOMETRICS ECONOMIC ACTIVITIES ECONOMIC DEVELOPMENT ECONOMIC GROWTH ECONOMIC REFORMS EMPLOYMENT GROWTH EMPLOYMENT INCOME ENFORCEMENT MECHANISMS ENTERPRISE DEVELOPMENT ENTERPRISE GROWTH ENTERPRISE SIZE ENTREPRENEURIAL ACTIVITIES ENTREPRENEURIAL ACTIVITY ETHNIC GROUPS EXCHANGE RATE EXPANSIONS EXPENDITURES EXPORT CROPS FAMILY MEMBER FARM ENTERPRISE FARM INCOME FARM SECTOR FEMALE ENTREPRENEURSHIP FEMALE PARTICIPATION FINANCE ACCESS FINANCIAL CONSTRAINTS FINANCIAL INSTITUTIONS FINANCIAL SERVICE FINANCIAL SERVICES FINANCIAL SUPPORT FIRM SIZE FIRMS FIXED ASSETS FOOD CROPS FOOD POLICY FORMAL FINANCIAL SERVICES GENDER HOUSEHOLD BUDGET HOUSEHOLD INCOME HOUSEHOLD SURVEY HOUSEHOLD WELFARE HOUSEHOLDS HUMAN CAPITAL INCOME GROWTH INCOME RISK INCOME SOURCES INFLATION INTERNATIONAL BANK INVESTMENT CLIMATE INVESTMENT CLIMATE ASSESSMENT JOB CREATION JOB OPPORTUNITIES LABOR FORCE LABOR MARKET LABOR MARKETS LACK OF ACCESS LAWS LIMITED ACCESS LIMITED ACCESS TO FINANCE MACROECONOMIC STABILITY MACROECONOMIC STABILIZATION MANUFACTURING ENTERPRISE MARKET DEMAND MARKET DEVELOPMENT MARKET INFORMATION MARKETING MICRO-ENTREPRENEURS MICROENTERPRISES MICROFINANCE MONEY LENDER MONEY LENDERS MONEYLENDERS NATURAL RESOURCES NEW BUSINESS NEW BUSINESSES OPERATING COSTS POLITICAL ECONOMY POOR POOR ECONOMIC GROWTH POOR PEOPLE POVERTY REDUCTION PRIMARY EDUCATION PRIVATE BANKS PRIVATE ENTREPRENEURS PRIVATIZATION PROPERTY RIGHTS PROSPERITY PUBLIC EXPENDITURES PUBLIC INVESTMENTS PUBLIC TRANSPORT PUBLIC WORKS QUESTIONNAIRES RAPID GROWTH REGRESSION ANALYSIS RESEARCH ASSISTANCE RURAL RURAL AREA RURAL AREAS RURAL BUSINESSES RURAL DEVELOPMENT RURAL ECONOMY RURAL EMPLOYMENT RURAL ENTERPRISES RURAL ENTREPRENEURS RURAL FINANCE RURAL FINANCIAL INSTITUTION RURAL FINANCIAL INSTITUTIONS RURAL HOUSEHOLD RURAL HOUSEHOLDS RURAL INCOME RURAL INVESTMENT RURAL LABOR RURAL LABOR MARKET RURAL MARKET RURAL POOR RURAL POPULATION RURAL POVERTY RURAL POVERTY REDUCTION RURAL SERVICES RURAL TOWNS RURAL TRADE RURAL WAGES SALE SALES SALES GROWTH SALES REVENUE SALES REVENUES SECONDARY EDUCATION SELF-EMPLOYMENT SMALL BUSINESS SMALL ENTERPRISE SMALL ENTERPRISES SMALL FIRM SMALL FIRMS SOCIAL SERVICE SOURCE OF INCOME SOURCES OF INCOME START-UP START-UP CAPITAL START-UPS STATE OWNED ENTERPRISES STATISTICAL ANALYSES SUB-SAHARAN AFRICA TAX CONSTRAINTS TAXATION TRANSACTION TRANSACTION COSTS TRANSITION ECONOMIES TRANSPORT TRUST FUNDS URBAN AREAS URBANIZATION VILLAGE VILLAGES WOMAN
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World Bank, Washington, DC
Africa | Tanzania
2012-05-31T22:12:36Z | 2012-05-31T22:12:36Z | 2008-07

This paper analyzes characteristics of nonfarm enterprises, their employment growth patterns, and constraints in doing business in rural Tanzania. Using unique survey data, the authors describe a low-return sector struggling to compete in a difficult business environment. However, about one-third of rural enterprises are growing fast. Most enterprises engage in agricultural trade. Due to a rapidly growing agricultural sector in recent years, limiting demand-side constraints, rural enterprise constraints in Tanzania mainly operate from the supply side. This suggests that, in particular, access to finance, road infrastructure, and rural cell phone communication is correlated with employment growth. A major finding is that subjective and objective measurements of business constraints are broadly comparable. The authors discuss a number of factors that would help to unleash the full potential of private sector-led growth in rural areas. The findings show that marginal improvements in the rural investment climate matter for growth.

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