Customer satisfaction in small and medium enterprises financing services: With reference to working capital loan at NBC, Tanzania
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Mzumbe university
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A Dissertation Submitted in Partial Fulfillment of the Requirements for the Degree
of Master of Business Administration in Corporate Management (MBA-CM) of
Mzumbe University.
The main objective of the study was to evaluate the customer satisfaction in financing of SMEs within banks in Tanzania, taking cognizance of the role and contributions of National Bank of Commerce Limited. In most jurisdictions, commercial banks as a group are the main source of external finance for SMEs. However, there are number of rigidities of a macroeconomic, institutional and regulatory nature that may bias the entire banking system against lending to SMEs. The statement of the problem is that these commercial banks are most often unwilling to increase loan funding without an increase in the security given thereby leading to stagnation of growth and certain instances unable to expand to enjoy economies of scale necessary to serve their potential of being an engine of national growth and are thus collapsing. The sources of materials for the study were both primary and secondary. Primary data was collected by the use of structured questionnaires which designed and distributed to SME customers to some different bank branches in Dar es salaam City. Stakeholders like SME customers, management executives and some staff of NBC were interviewed for input on this study. Secondary materials were extracted from relevant textbooks, newspapers, reports/articles, journals, bulletins and documents presented by corporate financial analysts and policy planners. The study was engaged to the staff respondents that have been on the SME Banking between the period of less than two years and three years. In view of the above the study would help out the financial instutions in Tanzania to focus on satisfying SME customers in order to have strong policies that will assist customers to have greater opportunities to grow their business effectively hence to the economic development of the country.
The main objective of the study was to evaluate the customer satisfaction in financing of SMEs within banks in Tanzania, taking cognizance of the role and contributions of National Bank of Commerce Limited. In most jurisdictions, commercial banks as a group are the main source of external finance for SMEs. However, there are number of rigidities of a macroeconomic, institutional and regulatory nature that may bias the entire banking system against lending to SMEs. The statement of the problem is that these commercial banks are most often unwilling to increase loan funding without an increase in the security given thereby leading to stagnation of growth and certain instances unable to expand to enjoy economies of scale necessary to serve their potential of being an engine of national growth and are thus collapsing. The sources of materials for the study were both primary and secondary. Primary data was collected by the use of structured questionnaires which designed and distributed to SME customers to some different bank branches in Dar es salaam City. Stakeholders like SME customers, management executives and some staff of NBC were interviewed for input on this study. Secondary materials were extracted from relevant textbooks, newspapers, reports/articles, journals, bulletins and documents presented by corporate financial analysts and policy planners. The study was engaged to the staff respondents that have been on the SME Banking between the period of less than two years and three years. In view of the above the study would help out the financial instutions in Tanzania to focus on satisfying SME customers in order to have strong policies that will assist customers to have greater opportunities to grow their business effectively hence to the economic development of the country.
Keywords
enterprises financing services