Thesis Submitted in Partial fulfillment of the Requirements for the Award of the Degree of Master of Business Administration in Corporate Management (MBA-CM) of Mzumbe University
2014
This study was conducted at Akiba Commercial Bank involving its three large branches of Kijitonyama, Ubungo, Buguruni and one of its medium branch of Mbagala, all in Dar-Es-Salaam region. The study aimed at assessing the impact of microfinance loans from Akiba Commercial Bank on livelihood of micro business owners in Tanzania. Specifically the study had the aim of identifying the types of micro businesses conducted by micro business owners in Tanzania, examining the interest rate and other costs charged by the bank and criteria in accessing the micro loans, evaluating the contribution of income generated from financed business on the livelihood of micro business owners in Tanzania and to indicate the challenges associated by micro loans to both the bank and the micro business owners.
Data collection involved the use of Structured and Semi- Structured questionnaires which were administered to each respondents group. Total of 403 respondents were involved in this study. 400 respondents were Micro business owners with loan facility 3 other respondents were ACB bank managers. Purposive and simple random sampling techniques were used to select the respondents and simple excel was used in analyzing data.
The main findings from the study showed that Microfinance Loans from Akiba Commercial Bank play a tremendous role on the Livelihood of the Micro business owners in Tanzania. Noticeable and positive contributions were observed as most micro business owners with micro loans facility said to have extended their businesses and have generated more income which in turn has improved family life and increased household assets. All these have enhanced livelihood and improved social well being of this community.
Based on the findings, it is highly recommended that Microfinance banks and other Financial Institutions should direct their efforts to rural communities with no privilege to microfinance services in order to improve upon their livelihood and contribute to growth of national economy.