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This study attempts to examine the impacts of microfinance institutions on micro and
small enterprises growth in Tanzania. Therefore, the study contends to examine the
impacts of microfinance institutions on micro and small enterprises growth in
Tanzania that will reflect the gap of knowledge on the influence of MFIs on MSEs
growth. The study was guided by the objectives; to determine the extent to which
MFIs services has an influence on MSEs capital growth, to determine whether the
MFIs services has an influence on MSEs asset growth, to find out the extents to which
MFIs services has an influence to MSEs employment growth among MSEs in Mbeya
municipality. The study was expected to establish the practical relationship between
microfinance institutions credits services and how influences MSEs growth. A case
study design was adopted, simple random sampling employed for selecting 100 MSEs
to be studied who are the beneficiaries of PRIDE services. Data was collected via a
self admistered questionnaire whose validity and reliability was established.
Quantitative and qualitative data analysis was undertaken to generate both descriptive
and correlations. Presentation of data was done in tables and interpretation made based
on research objectives. The results of Pearson correlation revealed that positive and
significant relationship has been established between MFIs financing to capital size,
assets, and employment growth. To a large extent MFIs operation in Tanzania has
brought about positive changes in the business growth.
The study recommends MFIs to expand their corporate social responsibilities to small
scale enterprises; possibility to slow down the loan conditions and procedure of loan
application. To enhance the out-reach of microfinance through creating awareness of
the activities and operations to MSEs especially those in rural and semi-urban areas.
Management of microfinance institutions should incorporate SME’s views or inputs
into the formulation or review of their credit management policies. MSEs operators to
set clear growth goal and pursue them continuously, thus making sure that the |
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