Asian Journal of Economics, Business and Accounting

The Blue Economy has emerged as a strategic development framework aimed at promoting sustainable economic growth, livelihood improvement, and environmental stewardship in coastal and marine regions. In Tanzania, small-scale enterprises operating in fisheries, aquaculture, seaweed farming, and coastal tourism play a critical role in local economic development. However, many of these enterprises continue to face challenges related to low productivity, limited access to finance, and vulnerability to environmental and market shocks. This study examines the role of community engagement in enhancing Blue-entrepreneurship performance within coastal Tanzania. Drawing on social capital theory and participatory governance perspectives, the research investigates how participation in community institutions, savings groups, and knowledge-sharing networks influences enterprise outcomes. A comparative cross-sectional mixed-methods design was employed, with primary data collected from 240 Blue entrepreneurs in Bagamoyo District and Kinondoni District. Quantitative data were analyzed using descriptive statistics, correlation analysis, and multivariate regression models, while qualitative interviews and focus group discussions provided contextual insights. The findings indicate that community engagement has a positive and statistically significant effect on multiple dimensions of enterprise performance, including income growth, enterprise survival, diversification, and adoption of sustainable practices. Participation in community savings and credit associations significantly improves enterprise survival, while involvement in local decision-making and knowledge-sharing networks enhances both economic and environmental outcomes. Furthermore, the effects of community engagement are stronger in semi-rural coastal contexts than in urban settings, highlighting the importance of local institutional environments. The study contributes to the Blue Economy literature by demonstrating that community engagement functions not only as a governance mechanism but also as a productive economic resource that supports entrepreneurial performance. Policy implications emphasize the need to institutionalize community-based engagement and financial mechanisms within Tanzania’s Blue Economy strategy to promote inclusive and sustainable coastal development.