The impact of loans on poverty alleviation in Tanzania:the case of youths and women entrepreneurs in Kinondoni municipal council

This study sought to establish the impact of loans on poverty alleviation among youths and women entrepreneurs in Tanzania by assessing the contribution of such loans (financial assistance) in the fight against poverty. The study also examined the adequacy of government policies related to entrepreneurship training and also analysed the trend of loan repayment for sustainability of funds allocated by the government. Both, desk and field research were used in getting pertinent data for this research work.' A sample of 50 Kinondoni municipal based entrepreneurs was involved in the study. Researched findings revealed that loans and other financial assistance to youths and women entrepreneurs have a positive impact on poverty alleviation. Also, it was established that lucent training programmes on entrepreneurship are inadequate. Furthermore, the rate of loan repayment was not encouraging. Loan recipients need to be encouraged to adhere to loan repayment schedules for funds to be revolving and sustainable. Several measures are needed to be taken by the Kinondoni Municipal Council if they really want to reduce poverty among its targeted groups. Such measures include: increasing the loan amount to borrowers, provide adequate training as well as competent trainers and instil entrepreneurial culture among loan recipients.