Browsing by Author "Chaula, Rurahini"

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    Assessment of the influence of microfinance services on MSE’s growth in rural Tanzania a case of Kilolo district in Iringa region
    (University of Dar es Salaam, 2015) Chaula, Rurahini
    The aim of this study was to assess the influence of Microfinance services on MSEs’ growth in rural Tanzania. The study was conducted in Kilolo District in Iringa region. Kilolo is a rural area having many growing enterprises with very limited Microfinance Institutions such as NMB and Mazombe SACCOS. The study was guided by the following objectives: to assess the influence of MFIs’ services on MSEs’ capital accumulation, on MSEs’ employment, on MSEs’ innovation, and to identify challenges facing rural MSEs in utilizing the MFIs’ services. The study involved one hundred MSEs whereby quantitative research approach was adopted in which a self-administered questionnaire was applied for data collection. Data was analyzed using descriptive statistics, correlations and regression analysis. The study found that, MFIs in rural areas play pivotal role in the growth of the rural MSEs as it is realized through capital accumulation, MSEs’ innovation and employment opportunities. Nevertheless, MSEs encounter some challenges that affect involvement in MFIs’ services such as membership transitional period of at least three months before being eligible for the first loan, the use of collateral bonds in loans, high interest rates of loans as well as businesses rotating on seasonal pivot. The researcher recommends that rural MSEs need education on how to use MFIs’ services as opportunities for business development. Also MFIs’ need to create favourable regulations that will encourage the rural MSEs to engage into MFIs’ services.