Browsing by Author "Langa, Neema"

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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.