Youth Entrepreneurship in the Agribusiness Sector in Tanzania

ABSTRACT This study examines the involvement of youth in agricultural‐related activities in Tanzania. The data are nationally representative from the National Sample Census of Agriculture (NSCA) 2020. We adopt descriptive, Structural Equation Modelling (SEM) and econometric analyses. Results from the descriptive analysis show that unreliable rain associated with floods, pests and diseases and drought are critical problems, whereas low market price, market too far, high transport cost, lack of market information and insufficient production are major challenges affecting youth agripreneurship. Results from SEM reveal that mechanisation, irrigation, agro‐product processing, harvest value in TZS, credit, membership in a community group, training/extension, use of information source channels, farm input costs and land ownership are directly related to youth involvement in agripreneurship. At the same time, off‐farm income, general education, business ownership and age negatively influence youth entrepreneurship in agribusiness. The indirect/mediated effects of off‐farm income, farm input costs, credit and general education on youth involvement in entrepreneurship in agribusiness are reported. The robustness check results are consistent with the SEM results. Overall, the study proposes policy measures, academic and parental interventions to promote and retain many youths in agripreneurship.