Browsing by Author "Temba, Eulalia Isidor"

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    Credit use and small scale businesses perfomance: a case study of non-bank institutions' credit recipients in Dar es Salaam
    (University of Dar es Salaam, 2005) Temba, Eulalia Isidor
    The study examined the influence of credit on the performance of small scale businesses in Tanzania. The two National Policies of Micro Finance and Small and Medium Enterprise Development have given a priority to the role of micro finance in development of the small-scale business development and the informal sector in specific. Thus the study took into consideration this national initiative of combining micro finance and small business development for economic growth. It was expected that, credit would be an enhancing factor in business performance. The sampled non-bank institutions were: The Small Industries Development Organization (SIDO), Promotion of Rural Initiatives for Development Enterprises (PRIDE) and the Mennonite Enterprise Development Associates (MEDA),all Operating in Arusha, Dar es-Salaam and Mbeya regions. Owner managers receiving credit from the Institutions for their businesses constituted our study sample. Credit use for performing different functions of the surveyed businesses was measured using both qualitative and quantitative measures. Production, advertising and selling functions of the businesses were measured against different credit counts taken. A case study design using survey method was used. Data analysis was done at three levels namely: the hundred and fifty respondents, eight in-depth case studies, and seven business clusters. A Credit Performance Model involving lending and borrowing costs, the implication of demand and supply credit and the savings of the owner managers was use to assist the researcher to arrive at empirical evidence for proving the research assumptions. The results evidenced a contribution of credit to the performance of the businesses. This had an implication that policy enforcement aiming at encouraging small businesses to make use of the existing micro finance window is crucial. It was further recommended that, household savings if properly mobilized might become a