A dissertation Submitted in Partial Fulfillment of the requirements for the award
of the degree of Masters of Business Administration (Corporate Management) of
Mzumbe University
This study aimed to examine the capacity of microfinance institutions towards
improving the performance of Small and Medium Enterprises in Dar es Salaam City. In
particular it intended to determine the extent to which MSEs have been benefiting from
the MFIs services, identify the types of services that MSEs have been receiving from
MFIs, examine the pre-requisites to be met by the MSEs in order to get services from the
MFIs and lastly it was aimed to examine the MFIs needs towards enhancement of MSEs
performance.
The study adopted a mixed method approach in carrying out the study. Data were
collected from a range of sources by using different data collection techniques. Primary
data were collected through the use of questionnaires whereby the secondary data were
collected through documentation review. The data collected from the respondents are
presented in chapter four.
The results show that there is huge potential demand for support services which is not
adequately met by the existing Micro finance institutions framework. The institutional
framework for supporting SMEs was found to be constrained by inadequate financial
and human resource capacity as reflected in the stringent conditions imposed on SMEs
and strategies adopted to promote service delivery.
The study concludes that microfinance institutions in Dar es Salaam have inadequate
capacity that can help to improve the performance of SMEs. Therefore there is a need to
strengthen level of awareness about what services are provided by MFIs for better
development of Small and Medium Enterprises in Dar es Salaam city.