A Dissertation Submitted in Partial Fulfilment of the Requirements for Award
of the Degree of Master of Business Administration in Corporate Management
(MBA-CM) of Mzumbe University
This study aimed to access the factors hindering petty traders’ business in accessing
credit from NMB. More specifically, to petty traders in IMC. Specific objectives of
the study were, to determine the criteria used by NMB to offer credit facilities to
petty traders, examine the factors hindering access to credit facilities by petty traders
in Karume Market in IMC and propose solutions for petty traders to access finance.
The sampling techniques used purposive sampling. The study used statistical formula
to compute sample size where a sample size of 100 were obtained. However, a total
of 97 respondents filled and retuned questionnaires accordingly. Data analysis
obtained descriptive statistics after analysing data using Statistical Package for Social
Sciences- version 21 (SPSS).
The findings revealed that collateral, character of the borrower, initial capital and
owning NMB bank account are significant criteria that affect petty traders from
accessing credit from NMB. Also, high borrowing interest rates, inadequate business
knowledge, lack of cash flow and lack of trust are contributing factors that limit
credit accessibility from NMB.
Study shows that banking financial institutions should review their loan policies
especially on interest rate, collateral and repayment period. Business education is one
of the areas that banks and the Government must invest so as to create awareness for
borrowers. Also, the Government is recommended to have a special budget for
assisting petty traders and non-banking financial institutions like Savings and Credit
Co-operative Society (SACCOS).