The role of microfinance loans on urban women entrepreneurial empowerment in Tanzania: a case study of pride Dar es Salaam

MFIs provide loans to poor and especially women who are unable to get such financial service from the commercial banks. It is apparent that women are underrepresented in business undertakings and that such loans are considered as an important tool to support them. This study examined the role of microfinance loans on urban women entrepreneurial empowerment. It specifically focused on finding out the extent to which, interest rate, loan sizes and awareness of loan procedures influence urban women entrepreneurship. The study was conducted in Dar es Salaam using PRIDE as a case study. Fifty women customers of microfinance were randomly selected for the study. Self administered questionnaires were distributed to fifty respondents. Interview guide was used to gather in depth information about the study from 5 key informants. Data were quantitatively analyzed by SPSS where mean, standard deviation and frequencies were used for analysis. The findings of the study revealed that awareness of loan procedures and loan have great influence on urban women entrepreneurial empowerment. Awareness of loan procedures was noted to be much influential to UWEE with standard deviation above 1 but less than 3 indicating that responses were not highly dispersed. Interest rates charged by MFIs were found to have a negative, impact on urban women entrepreneurship. The study has recommended that MFIs women clients to be provided with entrepreneurial education, to establish or join to the associations to enable them to analyze loans variables and also to have one sound in negotiating loans terms. Policy makers are also recommended to review policies that can guide MFIs in setting reasonable interest rates.