JK fund and unemployment in Tanzania: a case study of Bagamoyo district, Pwani region

"The JK fund" is a fund that has been initiated by His Excellency Mr. Jakaya Kikwete, President of the United Republic of Tanzania. The main objective of this study was to investigate if unemployment rate in Tanzania is due to lack of capital for investment; specifically to examine the uses of capital and hence generate employment, explore categories of education levels for those who obtained the JK fund and to examine strategies used for deploying the fund. The study interviewed sixty (60) small entrepreneurs who got financial assistance through JK fund to avoid biased results. Data was collected using structured open and closed questionnaires. Quantitative data was analyzed by using Statistical Package of Social Science software (SPSS) while qualitative analysis was employed for qualitative data to supplement quantitative data analysis. The results from the study shows that, 80% of capital was invested into the business and 20% were used to fulfill other private obligations by small entrepreneurs involved in this study. The findings also show that the capital invested has resulted to business expansion and hence more employment opportunities being created. Basing on the results, JK fund has positive effect on unemployment in Tanzania. It is recommended that in order to have sustainable entrepreneurial sector in Tanzania, sensitization of small entrepreneurs before obtaining financial assistance is vital also monitoring on how they run and formalize their business has a big contribution to economic growth.