The role of commercial banks on growth of small and medium enterprises in Dar es Salaam: a case of celected SMEs in Ilala municipality.

The study was designed to investigate the role of commercial banks on the growth of Small and Medium enterprises (SMEs) in Dar es Salaam, Ilala Municipality. The specific objectives of the study were to determine the relationship between commercial banks loan services provisions, commercial banks’ training services provisions and commercial banks’ account services provision and the growth of small and medium enterprises.The study employed a quantitative approach where 101 SMEs owners or their managers participated in the study. These SMEs were those found in Ilala municipality, one of the five municipalities found in Dar es Salaam city. Data were collected via survey strategy. The analysis of data was done with the help of SPSS to generate frequency distributions, and later correlations and regression analysis were performed to the data.The findings revealed that commercial banks loan services provision, account services provision and banks’ training services provisions are important for SMEs growth. Furthermore, the study revealed positive relationships between loan services provisions, account services provisions and banks’ training services provision and growth of SMEs. The study recommends that policy makers in the government to design training programmes that would impart knowledge to graduates of all levels on modern technology and entrepreneurial skills to enable them conduct businesses effectively. In addition commercial banks are recommended to revisit the financial terms and conditions in favour of the development of small and medium businesses.