Factors leading to unavailability of credits to small scale industries in Tanzania: a case of Dar es Salaam region.

The objective of this study was to find out the factors which contribute to the unavailability of credits to Small-Scale Industries (SSIs) in the Dar es Salaam region, Tanzania. Specifically, the study sought to: firstly, find out evidence on the types of collateral security demanded by banks or credit lenders which lead to the unavailability of credits to SSIs; secondly, assess the SSIs' accounting records to see if they can contribute to the SSIs' inability to secure credits; thirdly, find out whether the management of SSIs have information on the sources of credits; fourthly, investigate whether the high interest rates lead to the failure of SSIs to get credits; lastly, find out whether the government policies contribute to the SSIs inability to secure credits from commercial banks. The study found that the absence of proper accounting records and high interest rates are the factors which contribute to the unavailability of credits to the SSIs in Tanzania. The study also found that insufficient information on the sources of credits is not one of the factors which contribute to the unavailability of credits to SSIs in Tanzania.