The Effects of Microcredit on Growth of Small Cashewnut Entrepreneur’s Business at Mtwara Mikindani Municipality-Tanzania

Blass, Henry (2023) The Effects of Microcredit on Growth of Small Cashewnut Entrepreneur’s Business at Mtwara Mikindani Municipality-Tanzania. Masters thesis, The Open University of Tanzania.

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Abstract

The study determined the effects of microcredit on growth of small cashew nut entrepreneurs’ businesses at Mtwara Mikindani Municipality, Mtwara, Tanzania. specifically, the study aimed to determine microcredit utilization to small cashew nut entrepreneurs’ businesses in Mtwara, to examine the relationship between education level and growth of small cashew nut entrepreneurs’ business in Mtwara and to determine microcredit challenges for small cashew nut entrepreneurs’ business in Mtwara. The study employed case study design in which qualitative and quantitative methods were used. A simple random sampling technique was employed to sample out the small cashew nut entrepreneurs. The sample size was 80 respondents. The study used the descriptive statistics. The findings revealed that it was easier for the small cashew nut entrepreneurs in Mtwara to borrow loans from MCIs than from banks. The findings also indicated that the small cashew nut entrepreneurs (43.8%) directed part of the borrowed loans in other activities such as buying clothes, food and paying hospital fees. Further, the result, showed that the education level was significantly correlated with AMPE’s of Small cashew nut entrepreneurs. The study results also indicated that high interest rates, lack of training and lack of collateral were mentioned as microcredit challenges which faced the small cashew nut entrepreneurs in Mtwara.The findings also showed that banks should ensure that the lending procedure is clear and precise and timely to encourage SMEs to take up the loans. Flexible repayment periods should be facilitated by the management of lending institutions. Keywords: Business, Challenges, Entrepreneur, Education, Growth, Microcredit, Microfinance and small entrepreneurs.

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