Microfinance and Enterprises Performance in Tanzania: Does Gender Matter?

This paper aims to find out if there is a difference between the performance of enterprises owned by females and that owned by males. The study relies on survey data from micro and small enterprises in Tanzania. It compares sales revenue, number of employees and asset levels to assess enterprise performance.

Study findings reveal that female-owned enterprises demonstrated a slightly lower level of growth compared to enterprises owned by males. Male-owned enterprises have higher level of assets, sales revenue and number of employees compared to female-owned enterprises. Groups have gender-based motivations for owning and running businesses. Women are found to be more risk averse than men.

The study recommends training to address the limited motivation of women owners. Training would help women enterprise owners to:

• Change their perception and behavior in business;
• Increase motivation levels;
• Meet challenges of the business environment, manage the ever-changing world and plan the future of their business;
• Improve business and marketing skills;
• Overcome uncertainty in decision making;
• Gain access to new avenues of opportunity.