Moderation Effect of Entrepreneurial Training on Local Government Authorities’ Free Interest Micro-Credits and Fish Vendors in Tanzania

Abstract

This study investigates the impact of Local Government Authority (LGA) interest-free micro-credits on the livelihood status of fish vendors in Tanzania, with a focus on the moderating role of entrepreneurial training (ET). Guided by a positivist research philosophy, the study employs a deductive approach and quantitative methods to objectively examine causal relationships. Drawing on Micro-Credit Theory and Human Capital Theory, it explores how access to free-interest or zero-interest loans, coupled with entrepreneurial training, influences business performance and overall livelihoods of fish vendors. A cross-sectional survey was conducted among 337 fish vendors across three LGAs, Kigamboni Municipal Council, Ilemela Municipal Council, and Mwanza City Council, using proportionate and stratified random sampling. Findings reveal that access to interest-free finance has a strong positive effect on livelihood status (β = 0.899, t = 17.386, p < 0.001), whereas entrepreneurial training alone has a minimal direct impact (β = 0.031). However, ET significantly strengthens the effect of finance on livelihoods (ET × FI → LS: β = 0.018, t = 12.189, p = 0.001). The study underscores that integrated interventions combining micro-credits with high-quality training yield sustainable socioeconomic improvements and recommends policy support through mentorship, institutional backing, and capacity-building initiatives.