Business Administration

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Subject: search.filters.subject.Microfinance institutions

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Now showing 1 - 6 of 6
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    Challenges facing women entrepreneurs in accessing loans from microfinance institutions: The case of Dar es Salaam
    (Mzumbe University, 2013) Langa, Neema
    The study on challenges facing women entrepreneurs in accessing loans from microfinance institutions was conducted in Dar es Salaam region, Tanzania. The objectives of the study were to determine barriers facing women entrepreneurs in accessing loans from microfinance institutions, to identify different types of risks considered by lenders in financing women owned investments, to find out challenges facing women entrepreneurs in repaying loans and to examine the strategies for improving loans provision to women entrepreneurs. The study used a sample of 120 respondents. In collecting data the study used both secondary and primary data. The study revealed that majority of the respondents (51.7%) identified high interest rate as a strong barrier in accessing loans from microfinance institutions. The study further found out that micro financial institutions consider failure to repay loans as the major risk in lending. Moreover, it was found that high interest rate is the major challenge facing women entrepreneurs in repaying loans. Finally, the study found that if interest rates are lowered, it could improve loans‟ accessibility to small businesses owned by women. The Study concludes that the barrier facing women entrepreneurs in accessing loans from microfinance institutions is high interest rate. Most of the microfinance institutions in Tanzania charge between 24% to 48% interest rates per year. It is further concluded that failure to repay loans is considered as one of the type of risks by lenders in financing women owned investments in Tanzania. Moreover, the study concludes that high interest rate and uses of loans for family purposes are among the challenges facing women entrepreneurs in repaying loans. The study recommends that the efforts of Tanzanian MFIs should be streamlined to meet the standards set by BOT in Tanzania. MFI‟s should further review their policies on the maximum amount of loans to be granted to women to reflect the market demands.
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    The contribution of microfinance institutions in development of small enterprises :The case of Ilala municipality
    (Mzumbe University, 2013) Ng’ana, Jenipher J.
    The study intended to assess the contribution of Microfinance institutions in development of small enterprises in Tanzania, in the context of limited financial services in both rural and urban areas in the greater part of Tanzania, the study attempt to assess the role of Microfinance institutions (MFI) in facilitating micro enterprise development at Ilala Municipality in Dar es salaam region in order to increase prospects for economic and social development. The general objective was to explore the contribution of Microfinance institutions to development of small enterprises at Ilala in Dar es Salaam. The study was carried out in Dar es Salaam region as it was easier to obtain information from three different Microfinance institutions and some government Officers. Case study research design was adopted. Interview, questionnaires and observation data collection methods were used to collect data. A total number of sixty (60) respondents were given the questionnaires and interviewed. The findings revealed that microfinance institutions are the options and self-confidence of small businesses by contributing to their expansion and diversification of their businesses. They also help small businesses to decrease risks, increase profit, store their excess liquidity, obtain returns on their savings, and to conduct their businesses with dignity. The standard of living also improves in terms of education, housing, and health. In addition, the economic activities often create jobs for others; among those who gain employment in this way are some of the extreme poor people. They impact by mobilizing savings for investment, facilitate and encourage inflows of foreign capital and optimize the allocation of capital between competing uses. Generally, there is a need to create favorable environment for attracting more establishments of Micro Finance Institutions for sustainable economic development in the poor communities.
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    Influence of customer service management in performance of banking industry : The case of microfinance bank , Mororgoro Tanzania
    (Mzumbe University, 2014) Lyatuu, Emmanuel D
    This study assessed the influence of customer service management in the performance of banking industry; at the National Microfinance Bank, Morogoro - Tanzania. The study was guided by the following specific objectives: to identify the strategies used in provision of customer service management in the banking industry; to assess the effectiveness of customer service management in influencing banking performance industry and to identify the challenges facing the provision of customer care in the banking industry. The study adopted survey design whereby NMB Branches were selected. Primary and secondary data were collected through the use of t interviews, questionnaires and documentary review. Analysis of the collected data was done. The findings of the study indicated that NMB Bank adopted different strategies to ensure efective customer care such as introduction of proper channels of communication like call centres, conducting customer care training on performance, designing services to fit the needs of customers; ensuring that services were always of high quality without compromise and on time delivery of services. The findings showed that improvements undertaken by the bank to manage customer visits and to “decongest” its branches included:-investment in information technology infrastructure, opening up of new branches, establishment of branchless banking model that allows its customers to use any of its branches depending on convenience. Also introduction of an expansive ATM network, introduction of E-banking and adoption of mobile phone banking were done. It is recommended that the management of NMB Bank should consider frequent training of employees on customer services especially through creating strong customer relationship and employ effective employee etiquette as manifested by mutual respect among all stakeholders, courtesy and proper dressing code. Bank businesses should also consider employing mechanisms of improving on efficiency through reduction of time spent to serve the customers
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    Assessment on impact of microfinance institution on growth of medium and small scale entrepreneur in Tanzania. A case of EFC”
    (Mzumbe University, 2014) Bakalemwa, Gaudensia
    The aim of this study was to to assess the contribution of MFI services on the growth of MSEs in Tanzania. Specifically to identify the benefits of MFI on medium and small scale enterprises growth, to assess the impact of MFI loans on livelihood of Medium & Small Entrepreneurs, to assess the costs that medium and small enterprises incur when accessing the microfinance services. The researcher used both random and purposive sampling to select subject of 120 Purposive sampling was used to 5 administrative staff and random was used to30 respondents who were operations department staff and 90 customers who were MSE . The collected data through (both primary and secondary) were coded and analyzed by using a special program known as Statistical Package for Social Science (SPSS) and Microsoft Excel 2007. Most of the SMEs get business capital for their business loans from banks and MFI where by security is required for certain kinds of credits. Most of the business has turned into medium enterprises because of the extended support of these micro-finance institutions and among the appreciated services delivered by MFI, Microfinance enables the poor and excluded section of people in the society who do not have an access to formal banking to build assets There is some challenges facing SMEs in acquired loans from MFI like limited capital, Limited Capital, Poor Market strategies Innovation was a big challenge that Tanzanian SMEs faced. It is recommended that there is a need to help enhance an accelerated and sustained growth in the SME sector and also provide recommendations to help in the improvement of the services of MFIs. The MFIs may be quick to measure their success rate by considering factors like high repayment, outreach and financial sustainability, but these may not be success if their activities do not reflect in the growth of SMEs. The growth of SMEs does not only rely on access to credits but also the creation of favourable and formidable business environment. The MFIs have a great responsibility of ensuring the proper use of credit which is an important facility in business acceleration. To achieve this, credits should client-oriented and not product- oriented. Proper and extensive monitoring activities should be provided for clients who are granted loans
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    Factors considered in the ratings of micro finance institutions and the applicability of these ratings in Tanzania: A case of Mwanza Region
    (Mzumbe University, 2013) Kishamba, Ansbert
    The major problem faced by microfinance institutions has largely been lack of self sustainability which calls for borrowing externally. These difficulties faced by Microfinance institutions (MFIs) have triggered a great deal of researches on ways through which these problems can actually be addressed. Concern form the financial providers has always been whether the money that they provide will be repaid together with the interest thereon. Addressing this concern, several agencies have been established to help rate the MFIs according to their credit worthiness. This research therefore had the main objective of assessing the factors considered in the ratings of the MFIs and the applicability of these ratings in Tanzania. With specific objectives of seeking to assess the contribution of social factors in ratings, assessing the applicability of the ratings in the Tanzanian context and assessment of procedures followed in ratings, the study deployed secondary as well as primary data. The research deployed the qualitative research approach and borrowing some quantitative measures by applying the ordinal/ordered logit model for the analysis of secondary data while the primary data were mainly analyzed using the percentage. The study found that only the financial factors are considered when rating the MFIs and that social factors have got no bearing at all in the rating that an MFI assigned. The researcher also found out that the rating system can be put into use in the MFI industry in Tanzania and therefore recommends that an agency is established that will help rating the Tanzanian MFIs and therefore getting rid of the current system of issuing the maximum liability certificate.
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    Factors affecting the growth of microfinance institutions in Tanzania: A critical reflection on SACCOS in Morogoro Municipality
    (Mzumbe University, 2015) Mrisho, Mwisimba,S.
    This study assesses the factors affecting the growth of micro finance institutions; with a critical reflection on SACCOS in Morogoro Municipality. The study used a sample of 121 respondents extracted from the total population of 206 people including the managers, SACCOS‟s staff and borrowers. The study used descriptive survey research design as well as using both Primary and Secondary data and quantitative and qualitative approaches in its analysis. The primary data were collected using interview and questionnaire while the secondary data were collected using documentary analysis. The study assesses the effects of managerial skills and training, loan repayment trends and business competition on the growth of the SACCOS. The study finds that there was a general increase in the number of SACCOS in Morogoro Municipality. However, the number of active SACCOS has shown to decrease in the past two years. The reasons include; increase in bad debts, poor loan repayment rate and decrease in SACCOS capital. Also, the study found that there is a significant relationship between managers' skills and training and SACCOS performance hence their growth. The managers in the SACCOS make a lot of business and operational decisions, thus the skills and training are vital in arriving at sound decisions if the SACCOS are to prosper. Consequently, the study found that there are poor loan repayment rates in each SACCOS; this was evidenced by the loan default rate given. This has caused the liquidity of SACCOS to be poor hence affect the investment and other business operations. Finally, the presence of other financial services providers has put a standing challenge to the SACCOS hence affect the rate at which they grow. The study found that the majority of borrowers seek financial services from other providers. This may cause the SACCOS borrowers unable to pay their loans promptly as a result of multiple borrowing. Basing on conclusion, it is recommended that, for the SACCOS to perform better and hence grow there is a need to adhere to address the issue of management knowhow, apply viable loan recovery strategies as well as improving their services to encounter the business competition. Also, there is a need to apply proper risks analysis techniques and mitigation techniques to the credits to escape from loan defaults trap.