Exploring financial assistance opportunities and challenges to young entrepreneurs: The Case of Kinondoni District

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University of Dar es Salaam,
The thrust of this study was to explore the financial assistance opportunities and the challenges that young entrepreneurs face in accessing the financial institutions in Tanzania. A qualitative research approach was used and was supported by multiple case study design. The study was conducted in Dar es Salaam Region, in Kinondoni District. Purposive sampling was used to select the young entrepreneurs who were working in the following enterprises: hardware stores, caterers, poultry farmers, second hand stores, and hair saloons. A total of 60 owners were sampled. The findings of the study revealed that there are several financial institutions (from banks and non-government organisations) that helped young entrepreneurs to get loans and capital, despite that they had high interest rates, but still they were able to get loans. Moreover, the criteria used by these banks are the minimum requirements of banking institutions. It was also established that the biggest challenge these young enterprises face is high interest rate on loans, financial institution attitudes towards young entrepreneurs, lack of collaterals and start-up capital, lack of awareness on financial service availability, small loan size and the repayment period. From the findings it is recommended that young entrepreneurs need to be educated on how to access the financial institutions and promote entrepreneurial skills and be able to access information in the financial institutions and its regulatory environment and have to team up or form groups that will reduce some of the challenges that affect their growth. A key policy implication is that the opportunities that were provided to young entrepreneurs were important but not to all therefore they have to consider those with activities related to agriculture and animal keepings these were called risk project. Also financial institutions including banks and non-government organisations are recommended to visit and support young entrepreneurs and young entrepreneurs are supposed to unite, register and make official their enterprises to reduce their challenges.
Available in print form, East Africana Collection, Dr. Wilbert Chagula Library, Class mark (THS EAF HD6276.T34K33)
Young adults, Employment, Finance, Kinondoni district, Tanzania
Kafanabo, J C (2017), Exploring financial assistance opportunities and challenges to young entrepreneurs: The Case of Kinondoni District, Master dissertation, University of Dar es Salaam. Dar es Salaam