The role and effect of micro finance institutions’ loan on innovativeness in micro and small enterprises: The Case of Women’s Micro and Small Enterprises in Dar Es Salaam
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Date
2012
Authors
Journal Title
Journal ISSN
Volume Title
Publisher
University of Dar es Salaam,
Abstract
This study aimed at investigating the role and effect of loan attained by Micro and Small enterprises from Micro Finance Institutions in fostering innovation, among women owned enterprises. Specifically, the study had the aim of finding out the extent, to which women business ventures are innovative, the effects of loans received from MFI on innovativeness in women business venture and also identifying challenges and solutions associated with loans for innovation. The study was carried out in Dar es Salaam, in all the three districts, Kinondoni, Ilala and Temeke. Literature on innovation, women entrepreneurs and finance in the Micro and Small enterprise was extensively reviewed. To measure the extent of innovation, three levels of innovation were categorized, namely introduction of completely new ways and products, modifications of ways and products and adoption of new ways and products. To achieve the desired results, a questionnaire, interviews guides and field observations were used for data collection. The statistical Package for Social Sciences (SPSS) and content analysis were used for data analysis.The study findings revealed that women who own micro and small enterprises in Dar Es Salaam do innovate but the effect and role of loan played a minimal in the innovation in these enterprises. The popular kind of innovation activities that is performed is more of adoption and modification than that of introducing completely new products and ways of productions. The study recommends that women’s micro and small scale entrepreneurs who are keen on enhancing their innovativeness should seek entrepreneurial courses and further education in business so as to master the management of their enterprises. Also financial institutions need to expand on the specification type of loans introducing loan for innovative purposes. Furthermore payment mechanisms by financial institutions should take into consideration the type of the loan taken and the nature of the enterprise that took the loan while interest rate on loan should be reevaluated to lower rates.
Description
Available in print form, East Africana Collection, Dr. Wilbert Chagula Library, Class mark ( THS EAF HD6072.5.T34D59)
Keywords
Microfinance, enterprises, loan, MFI, statistical Package for Social Sciences
Citation
Diyamett, L D (2012) The role and effect of micro finance institutions’ loan on innovativeness in micro and small enterprises: The Case of Women’s Micro and Small Enterprises in Dar Es Salaam, Master dissertation, University of Dar es Salaam. Dar es Salaam