Globally, youth face many challenges in their transition to adulthood. Boldly, the world is aware that, building the capacities of youth is one of the key pillars for solving their developmental challenges. Initiatives to provide diverse youth empowerment programmes have always been in place by means of different approaches. In Tanzania, for example, the recognition of the importance of preparing youth socially, economically and cognitively has been a catalyst towards addressing youth challenges and improving their livelihoods. Being one of the initiatives, Youth Development Fund (YDF) was launched in Tanzania in 1994. Its primary goal was to provide youth with loans to enhance entrepreneurial activities in the informal sector. Essentially, Tanzanian youth under YDF support are trying to engage in various economic activities for the betterment of their livelihoods. Unfortunately, activities under YDF are not well documented. The objective of this study therefore was to establish and characterize YDF-supported activities that different youths are tied up. The study was conducted in Morogoro Municipal Council and Mvomero District Council in Tanzania, both districts being purposively selected for their diverse socio-economic activities conducted by youths under YDF support. The main focus was on recipients of YDF. Data was collected using questionnaires and checklist for Focus Group Discussions and Key Informants. The characterization of activities grounded on; types of activities performed, agreeable number of group members as per YDF criteria, financial capacity as related to the fund requested, approved and disbursed among the beneficiaries, and the scale of business operation. Descriptive statistics suited to explain the basic features of data gathered. The study finding indicated that, activities established by YDF youth beneficiaries were characterized by insufficient financial capacity, poor adherence to criteria, and low scale of operation which greatly affected the performance of chosen activities. Again, an insufficient amount of funds provided by YDF programme to beneficiaries not only led to delays in loan disbursement but also to low coverage and scope, hence failure of YDF to have an impact. The study commends that, funds provided should truly reflect the plan or else there should be possibilities for beneficiaries being allowed to officially outsource funds from other supporters something which presently is not acceptable.