Browsing by Author "Luoga, Deograce Dominic"

Now showing 1 - 1 of 1
  • No Thumbnail Available
    Item
    Strategies employed by financial institutions in promoting small and medium enterprises: the case of CRDB bank.
    (University of Dar es Salaam, 2005) Luoga, Deograce Dominic
    This study aimed at determining the strategies employed by financial institutions in promoting small and medium enterprises in Tanzania. The study was guided by the hypothesis that there is a significant influence of CRDB services in development of SMes and that there is a positive relationship between SMes and CRDB services offered to them. Method used to collect information included documentary evidence and survey. The major findings indicated that the CRDB Bank has put in place a strategy to support and promote SMEs through provision of loans. Among others some of the steps taken include educating SMEs, offering competitive interest rate, establishment of customized products, following of the revised banks` procedures and requirements and introduction of relationship management concept ( RM ). As far as SMEs are concerned it was found that they lack business management skills, awareness and motivation in promoting small businesses. In addition SMES lack collaterals and reasonable capital. The policy environment was also found not to be conductive to SMEs operations. Owing to the significant role SMEs play in economic development, financial institutions should full finance the sector including ensuring sound financial management skills. Furthermore, building relationship between bank and SMEs was important in order to ensure a smooth roll out of the strategies set. The study recommended that banks should reduce over insistences on collaterals so as to save the majority poor. SMEs operators need to be trained in financial management skills, business record keeping and the value of services received from banks. On its part the government should review and consider reasonable taxes on the SMEs.