Problems facing youth entrepreneurs access to capital: The case of youths in Dar es salaam city

A study on problems to access capital/ loans suggests that the persistent problems of non collateral to youth entrepreneurs had led the contribution of growth of economy to grow slowly. The aggregate contribution to national income is estimate at 35 percent to 40 percent of GDP. The study consisted of both a quantitative and qualitative components. The quantitative phase of the study sought opinions of young entrepreneurs, Chief Executive of Commercial Banks and Directors of Saving and loans associations. Throughout city of Dar es salaam on wide variety of business related issues. The qualitative phase include on-one-on-one interviews from young entrepreneurs, bank managers and directors of saving loans associations to obtain their views of young entrepreneurs and current young programs, and together recommendations as to how these programs might be improved. As well, the report presents of statistics in city of Dar es salaam data on self employed young entrepreneurs to examine trends in entrepreneurship throughout the region over the past decade. Youth entrepreneurs were also found to be suffering from inefficient management problems. Bankers view on this suggests that, the reasons which make it difficult to lend to small business especially owned by youth entrepreneurs. Overall results indicate that the opinion of young entrepreneurs programs is generally positive. In additional , young entrepreneurs demonstrate a high level of awareness and usage of number of types of financial and non-financial assistance. Nevertheless, a tenet of the overall research suggests there is a room for improvement in terms of mentoring and skills development, with the potential increase in both the volume and success of young entrepreneurial activities in the region. Finally if strides are to be made in terms of growing entrepreneurial base in the region both these issues need to be addresses so as to increase the appeal of business ownership of both regional and environmental levels.