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.