Abstract:
The main objective of this study was to examine the contribution of private equity investments on
the growth of Micro Enterprises in Zanzibar. Specifically, the study examined the contribution of
expertise offered by private equity investments on the growth of Micro Enterprises, assessed the
contribution of financial resources offered by private equity investments on the growth of Micro
enterprises and proposed measures for improving private equity investments for the growth of
Micro enterprises in Zanzibar. This study employed both quantitative and qualitative approaches
in the collection of relevant information. Descriptive design was useful for collecting data and
techniques used in analysis. Simple random samplings were employed during the study. Data
were collected by using questionnaire and document review. Validity and reliability of the data
were tested showing the Cronbach’s Alpha,KMO and Bartlett's Test. SPSS version 25 and excel
Microsoft application were used to process data. Study findings revealed that that Result indicated
that there is an R2 value of 0.897%. This value indicated that three independent variables
(Expertise, Financial resource and Measures) explain 89.7% of variance in Micro-Enterprises
Growth. It therefore means that 10.3% of changes in Micro-Enterprises Growth are explained by
many other factors not considered in this study model. Thus the study recommends that Micro
Enterprises should organize their investment portfolio of private equity so that maximum returns
are reached with lower risks. The maximum profits would allow businesses to draw more investors
and promote their financing processes.
