Abstract

The impact of rural entrepreneurship and agribusiness development on the livelihoods of small farmers is a topic of significant interest. Understanding the current trends and patterns of these sectors is crucial for designing effective policies and strategies aimed at improving the livelihoods of small scale farmers. Agriculture is the backbone of Zanzibar's rural economy, with a focus on crops such as cloves, seaweed, cinnamon, nutmeg, and black pepper. Rural entrepreneurs can innovate this sector by adding value through processing, packaging, and marketing. Currently, there are some challenges that small scale farmers in Zanzibar face. The challenges lies in the inadequate development of rural entrepreneurship in agribusiness, which limits its potential to serve as an effective strategy. This study seeks to investigate the synergy between rural entrepreneurship and agribusiness as a pathway of improving livelihoods for small farmers in Zanzibar. The study was conducted in different rural areas of Zanzibar where agribusiness activities that adopting rural entrepreneurship have been established. This study employed a deductive approach research design that involves hypothesis testing. Multiple regression analysis was carried out to examine the direct and indirect relationships between outcome variable with observed variables. The results showed the positive and significant relationship between access to finance, access to social capital and access to modern technology with livelihood prosperity. Either, the results suggested that access to finance, access to social capital and access to modern technology were partial mediated with government support initiatives. The study concluded that access to finance, social capital and modern technology significantly influence livelihood prosperity, while government support strategies act as a crucial pillar in optimizing these prosperities.