Microfinance and financial performance of small and medium enterprises in Tanzania: a case study of Ilala Municipality
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Date
2018-11
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Abstract
The study assessed the effects of Microfinance on financial performance of Small and Medium
Enterprises in Tanzania. Data from Tanzania Investment Centre (TIC 2018) shows that 18% of
the SMEs collapse in the third year of establishment, while 20% remains dormant making little
profits.
The specific objective of the study were to establish the influence of provision of credit facilities
on financial performance of Small and Medium Enterprises, to determine the effect of savings
mobilization on financial performance of Small and Medium Enterprises and to find out the
relationship between financial skills training and financial performance of Small and Medium
Enterprises in Tanzania.
The research design used was descriptive research design. The target population consisted of the
registered 3215 Small and Medium Enterprises and the sample size was 356 SMEs operating in
Ilala Municipal. Data collection method used was questionnaire.
The study used primary data which was obtained through self administered questionnaire with
closed questions. 84.2% of the respondents was agreed that credit facilities affect the financial
performance of Small and Medium Enterprises, 84.3% of the respondents was agreed that
saving mobilization affect the financial performance of Small and medium Enterprises and
85.4% of the respondents was agreed that financial skills training affect the financial
performance of Small and Medium Enterprises in Tanzania.
The study recommended that the government and the Microfinance’s regulating bodies support
to facilitate their growth and increase capacity of small and medium enterprises in Tanzania.
Description
A Dissertation Submitted to the Directorate of Postgraduate Studies and Research, Kampala International University in Tanzania In Partial Fulfillment Of The Requirement For The Award Degree Of Master In Business Administration Banking And Finance
Keywords
Microfinance, Financial performance, Small and Medium Enterprises, Tanzania