# **5.3 Existing Support Programs and Projects**

100. With very limited available information, a comprehensive list and description of programs and projects targeted at the informal sector, including HEs, could not be drawn. Nevertheless, the stocktaking undertaken for this report reveals useful information on a number of programs and projects by various agencies, both government and nongovernment. Table A1.20 shows a list of programs and projects on which information was available, albeit with several gaps that limit an assessment of their impact.<sup>26</sup> Consequently, this study relies on useful insights gained from the FGD study to highlight key issues in general, while providing a detailed assessment of some of the programs and projects, whenever possible.

101. Most of the programs for HEs and MSMEs have overlapping objectives and target beneficiaries, reflecting weak coordination among implementing authorities. A large number of them focus on issues that involve access to credit, training on entrepreneurship skills, and socioeconomic empowerment of women and youth. A few others are much broader in scope and seek to address larger issues related to the business environment. Such programs include the MKURABITA (the formalization of properties owned by HEs), BARA (simplification of registration and licensing), and BEST (simplification and rationalization of regulations affecting businesses). The study of Johanson and Wanga (2009) on informal sector training discussed the limitations of the impact of SIDO and UDEC in entrepreneurship development, and VETA on vocational training and technical education. Another recent study analyzed the effects of both training and microfinance on small enterprises (Box 5.2).

**Box 5 2: Studying the Impact of Microfinance and Training on Small Enterprises**

In order to understand the needs of MSEs, an experimental study was conducted in Dar es Salaam in 2008-2009, which involved randomly selected male and female entrepreneurs who sought loans from PRIDE, the biggest microfinance institution in Tanzania. The members, all of whom had already had one successful loan from PRIDE, were divided randomly into two groups: one was given training in book-keeping, investment, and marketing; the other was not trained. Later, a sub-set of members from both groups were given business grants. The objective was to determine the effects of training and microfinance on the business performance of small entrepreneurs.

**_Results show that microfinance alone did not have any effect on the business performance of the small entrepreneurs.  However, a combination of microfinance and training resulted in an increase in business sales and profits, particularly among male entrepreneurs._** Training also improved the business knowledge of 26 ~~both female and male entrepreneur~~ including separating the business accounts from the household accounts, and in their mindset in terms of their  The lack of information with which to measure impact or a complete lack of the monitoring and evaluation s and caused a positive change in how the organized their finances – (M&E) aspects of these programs is a sign of weak accountability.  self-confidence and attitude towards risk. However, the finding that these effects were greater for male entrepreneurs than for female entrepreneurs suggests that females faced other obstacles which affected their 44 adaptation of new business practices conducive to business growth.  Supporting women to overcome these obstacles requires more efforts.