Assessing the role of Tanzania banking services on micro enterprises internationalization a case of NMB and CRDB banks in Dar es Salaam region

Abstract

The aim of this study was to assess the role of banking services on Micro Enterprises Internationalization in Tanzania: The case being of NMB and CRDB banks in Dar Es Salaam Region Data were collected using self-administered questionnaires, interviews and documentary review from 90 respondents, who yielded a 100% return rate. The data collected were analyzed using Statistical Package for Social Sciences (SPSS particularly cross tabulation. In consequence, the findings were tabulated and summarized, with frequencies, percentages, tables and figures. The findings of the study revealed that banks services contribute to the MEs internationalization growth. Furthermore, it was revealed that there is high willingness among the clients to borrow for MEs internationalization but the ability to pay the loans is restricted to few medium and higher income groups. Moreover, the study found out that the interest charged on loan by banks affects MEs efforts to internationalize as the majorities are forced to repay beyond their earnings due to higher interest rate charged. In additional, the study findings revealed that banking services are willing to invest in MEs businesses. However, the terms and conditions limit the market size of the borrowers that will be able to meet the requirements. Furthermore, the study result revealed that banks provide financial advisory roles to its clients/ MEs. Moreover, the findings further revealed that banks made more efforts to extend their operations across the international borders to influence MEs internationalization. Based on the study findings, it is recommended that Tanzanians, who are engaged in MEs sector need to utilize the opportunities available to international finances to promote their business growth. Moreover, for the MEs internationalization to become active, various actors in the market need to come together so as to speed up the whole process of MEs finance and delivery.