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The study aimed to analyze the role of MFI in the development of entrepreneurs in
Urban West region of Zanzibar, Tanzania. The study was guided by the following
questions: What are the various forms of supplementary services attached to
microcredit?; What are the factors which pushes Zanzibaris women entrepreneurs to
borrow microcredit at WEDTF?; and What are the challenges facing WEDTF clients to
access microcredit in the study area?. The study used a sample size of 141 respondents
includes a total of 136 respondents received microcredit services from WEDTF and 5
respondents (employees) of WEDTF was selected and data were collected using 136
questionnaires and interview guides to clients of WEDTF and WEDTF staff
respectively. The findings showed that there are various supplementary services
attached to microcredit products includes: Access to saving facility, access to training
facility, access to group formation, access to exhibitions and trade fair. The study further
showed that majority of WEDTF clients were self employed into different income
generating activities including: small shop, “mama lishe” and agro-processing, tailoring,
poultry keeping and vegetable production. The results show that increased employment
opportunities, increased sales volume, increased income, increased profit margin are the
outcome of the adequate micro credit access. The study revealed factors that pushed
Zanzibaris women entrepreneurs to borrow microcredit from WEDTF to include:
Interest rate is reasonable compared to commercial banks, no bureaucracy in loan
application and disbursement of credit, access of supplementary services to clients. Also
the study found that there are challenges facing WEDTF clients to access microcredit
includes: In adequate loan funds, no grace period, initial ceiling amount, no
microfinance policy, lack of permanent sales outlets. The study concludes that WEDTF
played a positive role to the development of entrepreneurs in Zanzibar due to its
integration of financial services and non financial services. |
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