Factors affecting growth of microfinance institutions in Tanzania the case of Temeke district

This research paper concerning “factors affecting growth of microfinance institutions was conducted in Temeke District as the case study, by assessing the factors that affect the growth of Micro-finance Institutions in Tanzania. A sample of twelve SACCOS was selected from which participants for this research were drawn. A case study design was useful for this study as the study confined itself to study growth as affected by many factors. Thus, this research treated growth a dependent Variable, whereas growth factors were the independent variables. Questionnaire and interview methods were the main instruments that used by the researcher to gather primary data and secondary data obtained from library and documentary reviews materials. Satisfactory internal consistence or reliability of the data was indicated by the Cronbach’s alpha test scale done and to ensure validity of the data collection instrument for this study the researcher conducted a pilot study to fifteen respondents from different SACCOSs. The chi-squire distribution through goodness-of-fit test was used to test the hypotheses. It is generally concluded that, there is problem in growth of microfinance institutions in Tanzania and this is due various factors including poor governance, weak profit gained and low outreach as they are revealed in this study. Conclusion drawn for this research should be treated with care as this research does not provide issues like gender discrimination in the participation in the MF Scheme, how lending of loans has an impact over the institutional growth and others.