Analysis of grid electricity influences on rural small business success in Tanzania: the case of selected areas in Mtwara Region

The role of small business is recognized as one of the major contributor in the growth of the country’s economy like Tanzania and therefore, poverty alleviation. The purpose of the study was analyzing the influences of grid electricity services on establishment, expansion and survival of rural small businesses in Tanzania, the case study of selected areas in Mtwara Region. Primary data were collected from respondents by means of administering 67 (sixty seven) structured questionnaire. Secondary data were collected from various documents such as Mtwara Energy Project (“MEP”) reports and Tanzania Electric Supply Company Limited (“TANESCO”). Data analysis use both qualitative and quantitative methods to analyze the data and hypotheses testing. Findings from analysis found that; reliability, availability, affordability and easy access/use of grid electricity services have influenced different types of small businesses establishment, expansion and survival during the recession period in rural areas. The research concluded that: reliable, available, affordable and easy access/use of grid electricity service in rural areas is fundamental requirement to small business establishment, expansion and survival. Recommendation: rural area electrification needs to be implemented seriously for the rapid emergence and development of small businesses.