Please use this identifier to cite or link to this item: http://hdl.handle.net/20.500.12306/4705
Title: Microfinance credit terms on the performance of Small and Medium Enterprises (SMEs): a case of Dar -es- salaam region -Tanzania
Authors: Gloria, Haonga
Keywords: Microfinance credit
Small and medium enterprises
Dar -es- salaam
Issue Date: Jun-2019
Publisher: Kampala International University, College of Economics and Management
Abstract: The study focused on the assessment of the impact of Microfinance credit terms on the performance of SMEs in Dar es Salaam Region, Tanzania. With three objectives namely: To analyze the effect of microloan interest rate, to examine the effect of microloan repayment period and to establish the effect of microloan repayment amount on the performance of SME’s in Dar es Salaam region. This study used cross-sectional and survey research designs. The sample size used in the study constituted registered small and medium enterprises (SME’s) operating in Dar es Salaam region as well as, 392 respondents were selected. Data were collected by questionnaire, interview and documentary review and analyzed by descriptive statistics (percentage distributions, mean, and standard deviations). The study revealed that 65% of respondents denied the existence of positive experience by SMEs with microloan interest rate. On the other hand, about 49% indicated unsatisfied with loan repayment periods, In addition, 64% of respondents rejected the contention that microloan repayment amounts posed by microfinance lenders were fair enough to positively contribute to their performance. Thus, credit terms namely microloan interest rate, microloan repayment period, and microloan repayment amount significantly affected the performance of SMEs in Dar es Salaam. The study recommended that there is a need to establish SMEs credit bureau to provide credit rates ceiling and floor of SMEs and provide financial institutions and other lenders with easy access to credit information timely, accurate and reliable. Also, financial institutions should careful understand the SMEs nature of businesses in order to offer reasonable loan sizes and the booming seasons of SMEs business so that they can give reasonable loan period which in turn leads to their better Performance.
Description: A dissertation submitted to directorate of postgraduate studies and research, Kampala International University in Tanzania in partial fulfillment of the requirements for the award of Master’s degree of Business Administration (Finance and Banking)
URI: http://hdl.handle.net/20.500.12306/4705
Appears in Collections:Master of Business Administration - Main and Ishaka Campus

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