Microfinance institutions in development of small and micro entrepreneurs in Tanzania:
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Date
2010-09
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Publisher
Kampala International University, College of Economics and Management
Abstract
This study examined role of microfinance institutions in development of small and micro entrepreneurs in Chake Chake, Pemba district in Tanzania. In this manner, the study investigated aspects of debt recovery, loan levels and clients’ business project monitoring procedures as specific objectives of the study.
In the literature review, theories were used to support the study and concepts linked and analyzed to bring a conceptual framework. As such, different scholars’ views regarding debt recovery strategies, project monitoring and loan provision are internalized.
A case study design was used and 70 respondents were sampled through stratified sampling methods. Interview, questionnaire and observation were the instruments used and both primary and secondary sources of data were all of great importance.
The findings reveal that bad debt recovery methods have detrimental economic, social and psychological impacts on clients and the reverse was true. Concerning the issue of project monitoring, it was found out that projects closely monitored yield better profits, expand and grow unlike their counterparts. Clients who accesses big amount of money operate fair business that gives them high profit margins and the reverse was true.
The researcher recommended that NMB should empower SME5 economically and reduce the moral hazards associated with clients; monitoring system should be put in place for proper use of money and skilled personnel should be employed to monitor clients’ projects.
Description
A Thesis Presented to the School of Postgraduate Studies and Research Kampala International University Kampala, Uganda in Partial Fulfillment of the Requirements for the Degree Master of Business Administration
Keywords
Micro finance institutions, Small and micro entrepreneurs, National micro finance bank limited, Chake Chake Pemba.