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Microfinance involves activities directed at provision of access to financial services
for working poor or small and micro-enterprises. Micro financial services comprise
of micro credit, savings, micro leasing, micro insurance and any other forms of
financial Institutions.
Microfinance plays a major role in improving women decision making by
contributing in the economic activities.
The study focused on analyzing the role of Microfinance Institutions on women
empowerment. Major focus of the study was on the women of Tanga region whose
ways of life is reflected by their culture, religion as well as old customs. Major
problems which are faced by these women include social cultural attitudes, legal
barriers, lack of education and personal difficulties.
The researcher designed a case study for accessing detailed information on studied
topic. Source of information was documents collected, Observations, questionnaires
and interview sessions with the women in Tanga region as well as some of the staffs
working in Pride Tanga offices. These methods enabled the researcher to collect all
valid information and understand the impact created by Pride in the role of women
empowerment.
It was found that the level of education, culture and ways of life had a major role to
play in increasing poverty within the region. These cultural practices and ways of life
made the women to lose their rights as well as ability to reduce poverty as they
become highly dependent on their husbands.
Even though Pride has provided a major contribution on the empowerment to the
women of Tanga region, there are still some challenges which are being faced by the
institution such as the women being denied control over property, Lack of creativity
from borrowers, high interest rates as well as high default rate as the women tend to
diverge the funds to cater for household needs.
The researcher observed that a business can only be sustained and growth is
inevitable depending on the management of the business owner. Proper management
of businesses needs training; close study as well as enough capital required as well as
allocation of the right resources for the growth of the business. In Tanzania, most of
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the business women rarely have skills on running the business. Therefore, there is a
need to have training to women on how to conduct businesses, not only for the
readymade products but also on other ways of producing the products. Hence, giving
training to women, together with motivation towards achievements will lead to a
greater level of achievements.
In order to encourage more women to enter into microfinance institution lending
program, there is a need to reduce the interest rates on loans. This can be done by
increasing the number of legal microfinance service providers. Not only that, there is
also the need for the Government to put strict conditions on the street money lenders
as they charge high interest rates, which may take up all the profits acquired from the
business of the borrower |
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