Dissertations (Masters)-BA-SOB

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Browsing Dissertations (Masters)-BA-SOB by Author "Bwire, Baraka"

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    Assessment of factors affecting micro entrepreneurs in servicing their loan: A case of PRIDE
    (Mzumbe University, 2013) Bwire, Baraka
    This study assesses various factors affecting micro entrepreneurs in servicing their loan from microfinance institutions in Tanzania. Promotion for Rural Initiative and Development Enterprises (PRIDE) Tanzania, Kariakoo branch was the study area chosen for this study. Officials at PRIDE Kariakoo branch formed the unit of analysis and they were divided into three categories of head of departments, supervisors and operational staff. Another unit of analysis was PRIDE Kariakoo branch customer Despite growing in number of microfinance institutions, access to finance by micro entrepreneur is still a challenge as most of them lack credit history and holding defaulting history. This study then tries to dig into details to understand what other factors that affect micro entrepreneurs in servicing their loans; specifically the research also seek to examine the operating environment of micro entrepreneurs, to assess loan usage and its impact on micro entrepreneurs business, to assess viability of the loan write up (identify gap between write ups and implementation) and assessing the effectiveness of the Business Development Services (BDS) provided to the clients before and after accessing the loan. The research used both primary and secondary data sources. For primary data, observation, questionnaire and interview were used to collect data.The study found that lack of good business infrastructure, poor record keeping, poor and misuse of loan received, PRIDE direct microfinance scheme in place, high interest rates, poor capital base and low operating capital, withdrawing from the business and lack of saving culture are some of the factors affecting MSME’s to service their loan from microfinance institutions. The research suggests a need for a serious turnaround from Direct Microfinance Scheme to Triangular Credit Extension scheme and a need for all stakeholders to join hands for developing a sound business infrastructure for MSME’s growth and development in the country. The researcher really hopes that output from this study will be of practical use to PRIDE.