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Rural entrepreneurship in developing countries is facing a number of challenges such as limited access to capital, market, entrepreneurship skills and technology. Understanding the importance of assessing donors projects and to ascertain their contribution on rural entrepreneurship, this study examined the USAID funded Living Project implemented by CARE International in Tanzania, Morogoro region from January 2007 to December 2009. The objective was to assess the projects contribution towards the development of sustainable rural entrepreneurship, using both primary and secondary data. Survey methods were applied to collect primary data using questionnaires, in addition to interviews and focus group discussions.