Abstract:
In large part, the microfinance industry has been a catalyst for boosting sustainable
development, particularly for the less developed economies, for growth in the
business sector, especially for small and medium-sized enterprises. In addition, the
participation of women in the business sector in the small and medium-sized
enterprise sector, especially in Tanzania, has been closely linked to the microfinance
sector, which has proved to be a significant step for most female entrepreneurs. This
study sought to assess the contribution of microfinance in promoting women
entrepreneurial activities, in a case of women entrepreneurs in Kinondoni district.
Specifically, the study intended to determine the effect of the microfinance loans
(credit size) in promoting women entrepreneurial activities, to examine the effect of
the microfinance interest rate on promoting women entrepreneurial activities and
lastly to determine the influence of knowledge enhancements (trainings) provided by
microfinance in promoting women entrepreneurial activities. This study employed a
cross sectional research design particularly sampling a sample of 362 respondents.
The study performed a purely quantitative analysis that involved the use of statistical
and econometrical methods in order to create an empirical economic association
within the studied information. In the findings, the study found out that the
microfinance loans (credit size), interest rate charged and the knowledge enhanced
(training), all together have a significant impact on the promotion of women
entrepreneurial activities as they contribute to the business annual turnover and an
expansion in the business outlets at different significant intervals. This therefore
concludes that the microfinance does not only drive or stimulate the empowerment of
women but also play a catalyst role in promoting women entrepreneurial activities.
Hence recommended that there should be a promotion and advancement of the
microfinance services so as to promote the development of small and medium
enterprises and especially women-based businesses by financing them through
various microfinance institutions.
