Assessing the factors hindering the economic empowerment women entrepreneurs who have accessed credit from microfinance institutions in Arusha region

The main objective of this study was to assess factors, which hinder economic empowerment of women entrepreneurs who have accessed micro-credit finances from microfinance institutions (MFIs). In order to attain this objective, a survey of 51 women was conducted in Arusha region. Findings reveal that micro-credits to women entrepreneurs were beneficial due to the fact that a good number of them managed to establish their own small businesses, which improved their own lives and their dependants. Consequently, women entrepreneurs were empowered socially, economically and psychologically. However, the study further reveals that women entrepreneurs were hindered to be economically empowered due to a number of factors, namely low education level, socio-cultural perceptions, which interfere with their business activities and high interest rates charged by MFIs from loans that inhibit further development of their businesses. These women’s efforts are in line with the national strategy for growth and poverty reduction (MKUKUTA). Micro-credits empower women economically, and this would lead to social and psychological empowerment. Therefore, the government should make sure that more and more women could access these loans by providing credits with low interest rates and imparting business education so that they would know how to run business effectively