Masurel, ENaudé, W2021-08-192021-08-192020-04-24https://repository.tia.ac.tz/handle/123456789/11While small businesses may contribute towards reduction of poverty, studies in least developed countries (LDCs), particularly in Sub-Saharan Africa, have shown that small businesses often fail to contribute enough in this regard. One problem may be the informal nature of small businesses and entrepreneurship. The majority of the entrepreneurs in LDCs are characterized by features of tax avoidance, low levels of education and failure to keep accounting records. While entrepreneurs in the advanced economies participate in economic activities in terms of innovation and creative destruction (Kirzner, 1997; Schumpeter, 1934), entrepreneurs in LDCs such as Tanzania are mainly sellers of domestic goods, retailers of various goods, food processers and manufacturers, and tend to be less innovative (United Republic of Tanzania, 2014). This means that entrepreneurs from LDCs may differ from those in advanced economies in terms of: identification and exploitation of entrepreneurial opportunities; entrepreneurial competencies; and entrepreneurial motivation.en-USEntrepreneurshipInformal SectorFormal SectorTanzaniaThesis