Incidence and effects of client exit in microfinance institutions (MFIs) in Tanzania: the case of pride Tanzania – Dar es Salaam Region
No Thumbnail Available
Date
2011
Authors
Journal Title
Journal ISSN
Volume Title
Publisher
University of Dar es Salaam
Abstract
This research aimed at investigating the incidence and extent of clients exit in Tanzania taking PRIDE Dar es Salaam as a case study. The specific objectives of this study were to identify factors that influence client exit establish the extent of client exit and assess the effects of client exit on the sustainability of PRIDE (T). In order to study the problem, triangulation method was used. In which both the case study and cross sectional design were used. The study used a sample of 69 respondents who were staff as well as PRIDE (T) members that were sampled randomly. The data collection was done through interviews where questionnaires were used. The pilot study was carried out before embarking on a comprehensive data collection. Based on the study it was found, that high interest rate, short period to repay the loan, uncoordinated groups as well as lack of business education among the loanees were the factors for exit. The extent of exit among members was seen to be high (about 200 clients per year) and in most cases it was in the months of July to September. It was concluded that, the effects of exit were reported to be loss of reputation of the organization, decline in the number of clients as well as decline in the profit of the lending organization due to decline in the number of clients. It was therefore recommended that the government and stakeholders should revise the Small and Medium Enterprises policy as well as other enabling environment so as to increase the lending behaviors among low income earners. MFIs should improve their working policies to suit clients’ demand, hence to retain their clients.
Description
Available in print
Keywords
Microfinance, Client exit, Promotion of Rural Initiative and Development Enterprises (PRIDE), Tanzania
Citation
Mung’onya, C. M. (2011) Incidence and effects of client exit in microfinance institutions (MFIs) in Tanzania: the case of pride Tanzania – Dar es Salaam Region. Master dissertation, University of Dar es Salaam. Available at http://41.86.178.3/internetserver3.1.2/search.aspx