The effect of credit on income: a case of women’s micro projects for poverty alleviation in Shinyanga urban and rural districts
| dc.contributor.author | Mbeiyererwa, Arbogast Gwarbert | |
| dc.date.accessioned | 2025-04-22T10:44:47Z | |
| dc.date.available | 2025-04-22T10:44:47Z | |
| dc.date.issued | 2000 | |
| dc.description | Dissertation | |
| dc.description.abstract | Micro-credit funding for women income generating activities is one of the current anti poverty measures that are adopted by many developing countries to alleviate poverty amongst the poor. This study was conducted in Shinyanga region to examine the effectiveness of credit scheme models by this mode of funding to women’s micro projects at the grassroots. Both questionnaire and personal observation methods were used to collect data amongst women beneficiaries in Shinyanga urban and rural area districts. A total of 121 respondents was interviewed, and the collected data were analysed using both quantitative and qualitative approaches. The results show that, credit loans for women micro-projects have an apparent positive effect on the overall income of beneficiaries. But despite this, the credit loans to urban beneficiaries have shown overall poor performance. The variation of performance between the urban and rural beneficiaries was analysed by using the ‘current ratio’ (CR) measure. Thus, the test shows that there is a significant (P < 0.05) association between future sustainability of the micro-projects and the respective respondents’ location (either urban or rural area) - in terms of CR measure. The results also indicate that most of the micro-projects (54.5%) in rural areas have CR > 2. The average CR for the urban and rural area micro-projects were 1.3310 and 7.8250 respectively. This implies that the performance of rural area micro-projects was superior to the urban counterpart. Factors that contributed to this effectiveness include suitable creditiii policies and associated conditions that are flexible and affordable by the poor women at the grassroots. These features are reflected by the size of the loan, the type of projects for the targeted population and the modes of loan repayments. Furthermore, the T test for the difference between means of different group pairs of initial capital shows that there is a greater statistical (P < 0.05) difference between respondents with zero initial capital and those ranging between zero and Tsh.15 000.00 each. Similar results are indicated by the test between respondents with zero initial capital and those with capital ranging between Tsh.49 650. 00 and Tsh. 68 880.00. Basing on the study results it is recommended that, in order to support the poor women at the grassroots credit schemes for poverty alleviation must review their credit policies, so as to meet the conditions of the resource poor. But again, the study has noted that commercial oriented policies that create loan dependants are more likely to worsen the poverty situation irrespective of the location and target factors that are to be addressed. Credit policies can serve the poor when they address the factors that perpetuate poverty in the different localities. Credit agencies therefore, should make necessary reforms and preparations for the schemes before implementation. Among other things, targeting has to identify the real poor by assessing their actual requirements in the context of Tanzania environment. | |
| dc.identifier.uri | https://www.suaire.sua.ac.tz/handle/123456789/6663 | |
| dc.language.iso | en | |
| dc.publisher | Sokoine University of Agriculture | |
| dc.subject | Credit on income | |
| dc.subject | Poverty alleviation | |
| dc.subject | Women micro-projects | |
| dc.title | The effect of credit on income: a case of women’s micro projects for poverty alleviation in Shinyanga urban and rural districts | |
| dc.type | Thesis |