The impact of Microcredit Finance in the Performance of Small and Media Business Enterprises: A Case Study of Temeke Municipality

Monge, Justina (2016) The impact of Microcredit Finance in the Performance of Small and Media Business Enterprises: A Case Study of Temeke Municipality. Masters thesis, The Open University of Tanzania.

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Abstract

This study discusses the impact of Microcredit in the performance of Small and Medium Scale Enterprises (SMEs) in Temeke Municipality Dar es salaam Tanzania. The study has the following objectives: To assess the impact of MFIs loan in the business expansion of SMEs, to assess whether or not MFIs training help SMEs to improve their financial status, to assess whether MFIs provides a better chance for small and medium business to improve their productivity capacity, to assess quality of services provided by SMEs after receiving loan. The different methodologies were deployed, including interviewing micro credit clients through questionnaire and interviewing management team in order to generate and acquire necessary information. Descriptive statistics and Microsoft excel which involves frequencies and simple percentage graphical charts and illustrations were tactically applied in data presentations and analysis. The findings of the study reveals that significant number of the SMEs benefitted from the MFIs loans in both economic and social- well-being of individual clients, even though only a few of them were capable enough to secure the required amount needed. Interestingly, the majority of the SMEs acknowledge positive contributions of MFIs loans towards promoting their market share, financial credibility, number of employment, sales revenue, net profits, and decreased liabilities. It, therefore, implies that improvement in the provision levels of micro credit will result in increased significant impacts on performance of business enterprises.

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