Browsing by Author "Othman, Asha A."

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    Assessment of difficulties experienced by small businesses in accessing micro – credit from banking industry in Tanzania: the case of Azania Bank Limited
    (University of Dar es Salaam, 2010) Othman, Asha A.
    This study was designed to assess difficulties experienced by small business in accessing micro – credit from banking industry in Tanzania. Specific objectives of the study were to assess the operational procedure and performance of the existing formal credit sources in availing credit services to small business holders, to investigate factors that hinder credit accessibility by small business holders and to investigate the effect of demographic factors (such as age, gender, education background, economic level) on credit accessibility. The data were collected through documentary sources, questionnaires, and observation and it was analyzed using SPSS using frequency distribution as initial tool of analysis. The findings reveal that grace period, amount provided to small business, complicated and bureaucratic loan application procedure, high initial deposit and registration fee on loan application, and tough conditions imposed by the bank are the operational issues that affect small business in accessing micro-credit from banks and financial institutions. In addition, factors that hinder small business in accessing credit from banks were investigated to be inadequate record-keeping, lack of verifiable business premises, culture of non-repayment, slow loan processing, over insistence on collateral, rather than business potential, loan limit and slow graduation to higher amounts, lack of integrity, the banking and financial institutions act 2006, land and property informality. Furthermore, demographic factors were investigated to effect on credit accessibility. The policy makers are urged to take effective measures to set a policy to regulate the business environment so that entrepreneur will be able to access credit from banking industry.