Small-scale entrepreneurship in low-income countries such as Tanzania plays an important role in supporting economic growth, reducing poverty, and promoting social development. In recent years, there has been a steady increase in projects led by NGOs, universities, and local orga
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Small-scale entrepreneurship in low-income countries such as Tanzania plays an important role in supporting economic growth, reducing poverty, and promoting social development. In recent years, there has been a steady increase in projects led by NGOs, universities, and local organisations that aim to support existing businesses or help create new ones. Despite this, there is no commonly used framework to assess their socio-economic impact in a clear and structured way. Most existing tools are designed for large companies, focus mainly on financial outcomes, or require resources and time that small-scale projects cannot afford. This makes it difficult for practitioners to assess whether a project has had a positive effect, what changes it brought about, and how future support could be improved.
This research seeks to address this gap by designing a context-sensitive framework specifically aimed at assessing the socio-economic impact of small-scale entrepreneurship projects in Tanzania. The main research question guiding this work was: What context-relevant framework can be designed to assess the socio-economic impact of small-scale entrepreneurship projects in Tanzania?.
To answer this question, the study explored what indicators are used to measure impact, which are most suitable for small-scale projects, and what insights can be gained from applying the framework in practice.\\
Tanzania was chosen because small and medium-sized enterprises are a key part of its economy, making up about 90% of all registered businesses and contributing nearly half of GDP, which makes it well suited to explore how the impact of entrepreneurship can be assessed in practice. Moreover, many SMEs rely on partnerships and external support to overcome structural barriers such as limited access to finance and markets. Second, the research benefitted from established collaborations between the Delft University of Technology and local organisations such as YEP Tanzania and the CHAKO organisation, which facilitated field access and overall logistical coordination.
The design of the framework followed a multi-phase process grounded in a Design Thinking approach. A literature review was conducted, identifying around 1,500 indicators from established frameworks. Although these sources primarily addressed large-scale or corporate projects, they provided a valuable starting point. Indicators were filtered in successive steps based on relevance, measurability, and contextual fit, significantly reducing their number.
To complement this theoretical foundation, twelve semi-structured expert interviews were conducted with academics, programme coordinators, and local practitioners to validate the selection and integrate practical insights.
Building on these findings, a prototype framework was developed and tested during a one-month field study in Tanzania, involving two weeks of work with YEP Tanzania in Misungwi and two weeks with the CHAKO organisation in Zanzibar. During this period, interviews were conducted with project participants to assess the perceived relevance of the identified impact areas, the clarity of the questions, and their cultural sensitivity. In addition, the framework was applied to two case studies consisting of student-led projects implemented in recent years to evaluate its usability and consistency.
The final version of the framework is designed to be accessible, time-efficient, contextually appropriate, and adaptable to different types of interventions. It is available in four formats, in Swahili and English, with options to administer it after completion or before and after an intervention. The framework is provided both as a text-based tool and as an online version to facilitate wider use.
While the framework provides a practical way to assess socio-economic impact, it also has limitations. Further testing across more projects is recommended to refine its validity, understand when income-related indicators are appropriate, and ensure it remains relevant in diverse contexts. Overall, this work has introduced a structured approach to measuring the impact of small-scale entrepreneurship projects, filling a gap where no practical tools were previously available.
