Different studies have been conducted to observe what role the nonprofit organizations (NPOs) play in poverty alleviation. However, few studies has been conducted in rural areas of Tanzania where the majority of people are poor. Therefore, the purpose of this study was to examine the contribution of NPOs as social entrepreneurs in poverty alleviation in rural areas of Tanzania. The study adopted a survey design with the case of World Vision and Action Aids organizations. We conducted the study in two rural wards: Mtinko and Ilongero of Singida district. The targeted people were the NPOs’ beneficiaries. We opted to use this population so that we can make a comparison of the standards of living before and after receiving support, in order to see if the NPOs have impacted the lives of these people. The population was 303 with a sample size of 153 respondents. We used descriptive statistical analysis and thematic approaches in analyzing quantitative and qualitative data respectively. Generally, from the findings we found that when the NPOs empower people to have access to education, social capital, financial capital, agricultural inputs, water services, nutrition and health; these people likely they can manage to increase their productivity in agriculture, have self-employment, rise their income, improve shelter, and increase in goods and services consumption. The study makes the following key contributions to the body of knowledge. First, the study reveals that there is great need for the government, NPOs, and other potential partners to cooperate and fight for poverty alleviation for the people living in rural areas. It is the right time to make more effective use of the nonprofit sector (NPOs) in poverty alleviation efforts as the government of Tanzania no longer alone afford to provide social welfare to its citizens. Second, the study provides empirical evidence that people living in rural areas of Tanzania need to be taught entrepreneurial skills in order to take advantage of available economic opportunities, thereby helping them become better off in their lives.

A Dissertation Submitted to the School of Business in partial fulfillment of the requirements for the award of the Degree of Master of Science in Entrepreneurship (MSc. Entrepreneurship) of Mzumbe University.