Project profile — Strengthening Small Business Value Chains

• Tanzania (100.00%)

• Informal/semi-formal financial intermediaries:
Informal/semi-formal financial intermediaries (24040) (30.00%)
Education/training in banking and financial services (24081) (20.00%)
• Business And Other Services: Business support services and institutions (25010) (10.00%)
• Industry: Small and medium-sized enterprises (SME) development (32130) (40.00%)

• Gender equality (significant objective)
• Climate Change Adaptation (not targeted)
• ICT as a tool for development (not targeted)
• Trade development (significant objective)
• Youth Issues (not targeted)
• Biodiversity (not targeted)
• Indigenous Issues (not targeted)
• Environmental sustainability (cross-cutting) (not targeted)
• Disability (not targeted)
• Desertification (not targeted)
• Children's issues (not targeted)
• Urban issues (not targeted)
• Participatory development and good governance (not targeted)
• Climate change mitigation (not targeted)

The project aims to increase the performance of small businesses and entrepreneurs in three regions in Tanzania to help them meet the growing need for goods and services in the mining, gas and agricultural sectors. Weak supply value chains, unattractive debt finance terms and conditions, and a lack of understanding of market needs and opportunities mean that under-capitalized small businesses and entrepreneurs are missing opportunities to contribute to and benefit from rapid economic growth in Tanzania. The project works with key local private sector partners to address these gaps and strengthen business competencies, increase access to productive and financial resources, and improve the business environment in which they operate. The project is expected to accelerate business growth, and thereby contribute to increased incomes, job creation and poverty reduction. Project activities include: (1) improving access and quality of business development services and technologies for 10,000 entrepreneurs (including women entrepreneurs), and 250 small businesses; (2) building market alliances for 2,500 entrepreneurs and 100 small businesses to improve business cooperation and value chain productivity; and (3) increasing access to innovative financial products such as business plan challenge grants (grants that are paid only if the beneficiary organization is able to raise additional funds from other sources) for 80 small businesses and 60 entrepreneur alliances.

The expected intermediate outcomes for this project include: (1) improved business performance of male and female entrepreneurs supplying goods and services to small and growing businesses; (2) improved business performance of male and female-owned small businesses supplying goods and services to larger enterprises in response to market opportunities; and (3) improved business environment fostering growth of small businesses and value chains.

Results achieved as of the end of the project (March 2020): (1) provided business development support 28,593 small entrepreneurs (12,601 women) on financial management and strategic agricultural practices from 30 lead firms; (2) 76% of lead firms increased their sales and revenues. Also 92% of women-led firms reporting an increase, contributing to Tanzania’s economic growth and job creation; (3) 83.3% of 23,232 small entrepreneurs who received support to enhance business performance and implement climate-smart agriculture strategies reported increased capacity in at least 3 of the 5 business capacity statements. These include agri-food, logistics, construction, manufacturing, and extractives. Also 85.4% of women respondents reported improved capacity; and (4) 76.2% of lead firms reported increased revenue, with 92.3% of women-led firms seeing growth. These results contributed to Tanzanian economic growth and increased job creation by improving the business performance of small and growing businesses and small enterprises within 5 sectors. These are agri-food, logistics, construction, manufacturing and extractives.

• Proactive disclosure