Research
Growth of SMEs in Dar Es Salaam City in Tanzania: Challenges and Opportunities
This study examined challenges that impede the growth of SMEs and the factors influencing their growth in Dar es Salaam City. The study used a cross-section research design, which guided the collection of both quantitative and qualitative data from the field through questionnaire. 2Stratified random sampling was adopted to get the respondents of which data were collected from 300 SMEs owners. Both descriptive and logistic regression analysis were employed to meet the objectives of the study. The results from the descriptive analysis showed the main challenges in the region, which include limited access to financial services, lack of collaterals and limited training among SMEs owners. The logistic regression results indicated that experience, ownership, startup capital, size of the firm, and business turnover are critical factors that largely influence SMEs growth. Finally, the study recommends that all stakeholders should act holistically to support SMEs owners. There should be regular training among SMEs owners through seminars, workshops and symposia nearby their business premises. The Ministry of Finance and Planning, Bank of Tanzania (BoT) should open up a special window for SMEs owners to access soft loans especially those who operate in remote areas. Furthermore, the government though BoT should keep on regulating the financial market to enhance lending financial institutions to provide soft loans to SMEs owners. Moreover, experience, ownership, start-up capital, size of the firm and business turnover(benefits) are important attributes for the growth of SMEs. Therefore, SMEs owners should strive to maintain these attributes for sustainable growth of their businesses.
Financial Services Outreach in Tanzania: Determinants of Financial Exclusion through a FinScope Lens
Unlike financial services in developed countries, it is necessary to investigate the outreach of financial services in developing countries such as Tanzania. The study investigated the determinants of financial exclusion using data from Fin scope collected from April to July 2017 with a sample of 9,459 adults’ aged 16 years and above. The study adopted a multinomial logistic regression for Savings and borrowing models. Through borrowing model, gender, marital status, education, wealth index, access to mobile phone, financial education, payments of utility bills, location and individual income are statistically significant influencing borrowing. The results from saving model reveal that age, gender, marital status, education, wealth index, access to mobile phone, employed, financial education, utility payment bills, household size, location, and individual income are the critical factor for saving among adults. Finally, the study recommends that the government through its respective organs promote and facilitate the investment of financial institutions to the investors who can develop and establish financial services, which are sensitive to young people, and women who are poor. Cell phones are basic infrastructures for financial deepening; banks, microfinance, non-bank payment service, and mobile money service providers should use them at the level where every group in the society such as poor people can access and use financial services. Provision of financial education in remote rural still vital to creating awareness on the importance of financial service on economic activities thereby attaining inclusive economic growth.
