Role of Microfinance Institutions in Mobilizing Savings for Economic Development Mara-Tanzania: A Case of Serengeti District 2000-2006
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Date
2008-12
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Kampala International University, bachelors degree of Arts in Economics
Abstract
More than subsidies poor need access to credit. Absence of formal employment
makes them none "bankable". This forces them to borrow from local money
lenders at exorbitant interest rates. Many innovative institution mechanisms have
been developed in Tanzania to enhance credit to poor even in the absence of
formal mortgage. The study examined the role of microfinance institutions in
mobilizing savings for economic development, Serengeti District,Tanzania.The
success and failure of various microfinance institutions in Tanzania and
Serengeti in particular have been evaluated, It examined other factors that
influence microfinance institutions and establish appropriate measures to
overcome the problem hindering microfinance institutions in mobilizing savings.
Research questions included: To what extent do people have access to lending
and borrowing? What is the rate of the loan repayment? Do microfinance
institutions fight or deepen poverty levels? What are the strategies used by
microfinance institutions in mobilizing savings? What are the factors influencing
financial institution ability to mobilize savings? What are the policies measures
undertaken to overcome the problem of financial institutions in mobilizing
savings?
Research methodology was a descriptive case Questionnaires, interviews and
observation were used to collect data and both qualitative and quantitative
techniques were used. Purposive sampling and stratified sampling was used to
select the sample and its size and SPSS 13.0 computer package was used to
analyze data.
The findings of the study show that there was a significant relationship between
microfinance institutions in mobilizing savings and economic development.
Therefore implies that independent variables play a vital role in explaining the
variation in output of microfinance institutions.
The study therefore recommends: government should invest immensely in
microfinance institution for enabling bright performance in achieving economic
growth, provision of more workshops to both entrepreneurs and administrators
persistently.
Description
A Thesis Submitted to the Faculty of Social Sciences in My Partial Fulfillment for the Requirements of the Award of the Bachelor Degree of Arts in Economics of Kampala International University
Keywords
Microfinance Institutions, Mobilizing Savings, Economic Development, Mara-Tanzania