Impact of credit on the development of micro enterprise: a comparative study of Pride and FINCA
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Date
2007
Authors
Journal Title
Journal ISSN
Volume Title
Publisher
Sokoine University of Agriculture
Abstract
Demand for credit to finance micro enterprises is increasing throughout the world
especially in least developed countries including Tanzania. Many entrepreneurs are
emerging nowadays in different areas of the country especially Dar es Salaam,
Kilimanjaro, Arusha, Mbeya, and Mwanza. So far, small enterprises have become the
main source of income to many peoples in the country.
Apart from the efforts made to the financial institutions, there is little empirical
evidence to show that, the performance of micro enterprises is influenced by credit
provided by different Micro-Finance Institutions (MFIs), and this was the core of this
research.
Primary data were collected using structured questionnaire, and analysed using SPSS.
Results indicate that, enterprises which acquired credit get higher gross profit than
their counterparts which did not access credit. From the findings it is concluded that,
provision of credits to small enterprises has a significant effect in performance of
SMEs. It is further suggested that tax reduction, review off economic policies on
SMEs and provision of business knowledge and skills would improve the
performance of micro enterprises in the country.
Description
Keywords
Credit, Micro enterprises, Developed countries, Micro-Finance Institutions
Citation
Gwakisa ,L(2007) Impact of credit on the development of micro enterprise. a comparative study of pride and Finca ,Morogoro:Sokoine unversity of Agriculture.