Women SMES’ access to finance: the case of Tanzania women’s bank limited

This study aimed at assessing financial access by women operating at SMEs level using the case study of Tanzania Women’s Bank Limited. Some women SMEs in Kinondoni and Ilala municipalities were sampled out and used in the case study of Tanzania Women’s Bank Limited (TWB). Data collection was from primary and secondary sources. It involved women SME owners, managers and TWB credit officers to whom questionnaires administered. Data gathered were analyzed using The Social Science Statistical Package (SPSS) and Excel. Relative frequencies were generated by using mathematical formulae. Results confirmed that factors that enable women SMEs to get loans from banks included low interest rates, favourable formalities as well as easy conditions offered by TWB, absence of collaterals and application of group guarantees. Challenges faced by women entrepreneurs in obtaining funds from financial institutions other than TWB included; inability to access information, capital, networks and markets. Others were high interest rates and gender discrimination. However, TWB faces the challenges of loan recovery, especially where there was confirmation that the loan had been diverted to other projects not been approved by TWB credit officers. Such a diversion often caused delays in loan repayments. The impact of establishing TWB on women SMEs financing decisions was a change in sourcing their financial requirements in favour of TWB and influence of TWB on lending services. Such change influenced other financial institutions to relax lending conditions in favour of women SMEs. This study contributes towards establishment of better financial policies that aim at transforming financial institutions, which compelled to lay down financial lending conditions favorable to women SMEs.