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Access to finance and smes growth a cross-sectional study of smes in Dodoma Municipality

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dc.contributor.author LUCUMAY, GLORIA
dc.date.accessioned 2016-03-26T13:58:19Z
dc.date.available 2016-03-26T13:58:19Z
dc.date.issued 2015
dc.identifier.uri http://hdl.handle.net/11192/1003
dc.description A Dissertation Submitted in Partial Fulfilment of the Requirements for Award of the Degree of Master of Science in Accounting and Finance of Mzumbe University. en_US
dc.description.abstract This study was set to assess the access to finance and SMEs growth in Dodoma municipality. Specific objectives were to determine sources of SMEs finances, factors that hinder SMEs to access finance, factors that hinder SMEs growth and the link between SMEs growth and access to finance. The sample size of the study was 120 comprising 30 participants from Uhuru, Majengo, Chamwino and Mwangaza ward. Purposive and random sampling techniques were used to draw the sample. Cross-sectional survey design was used. Since the study adopted both qualitative and quantitative research design, interview and questionnaires were used as data collection tools. Data were analyzed by (SPSS) using regression analysis tool. It was found that 51% the majority of SMEs relied on internal sources of financing, 35% both source of finance and 14% the external source therefore, access to external finance was still a challenge. Also the results of the analysis show that lack of information with (beta=0.189,P=0.048 and t-value=2.001) and administrative side of loan being demanding with (beta=0.248,P=0.049 and t-value=1.991) had statistically significant effect toward access to finance. Insufficient collateral, interest rate too high, banks requesting too much information and loan granting procedures being too long were found insignificant factors. Moreover management skills and keeping of business records with (beta=0.202,t-value=2.034 and P=0.044) was the only factors that significantly related with SMEs growth, other factors such as competitions, finding customers, cost of running and government regulations were regarded as insignificant and lastly SMEs growth was found not statistically significant with access to finance at (P=0.065,beta=0.169 and t-value 1.861) so the hypothesis was rejected. The study concludes that accessibility of external finance is an important factor for the different stages of growth for SMEs. Lack of management skills and poor keeping of business records acted as barriers for their growth. These can be removed if the SMEs have reliable financing sources. Furthermore the study recommends that competition is a challenge to the SMEs does not mean that business environment is not competitive. en_US
dc.language.iso en en_US
dc.publisher Mzumbe University en_US
dc.subject Small and Medium Enterprises (SMES) en_US
dc.title Access to finance and smes growth a cross-sectional study of smes in Dodoma Municipality en_US
dc.type Thesis en_US


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