Consumption and Saving Pattern of Micro-Entrepreneurs in Dar Es Salaam

(10pt) This paper examines patterns of consumption and saving of micro-enterprise operators in Dar Es Salaam. Descriptive statistics is employed to analyse data from 103 micro-enterprise operators gathered through structured questionnaire. Further, Ordinary Least Squares (OLS) method is employed to estimate econometric model. Accordingly, results show that micro-entrepreneurs consume over 80 percent of their income meaning that they save less than 20 percent. Further, results show that about 20 percent of micro-entrepreneurs do not save. The results show positive relationship between income, consumption, and saving. Demographic characteristics of micro enterprise operators do not relate to consumption and saving patterns.