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The purpose of this study was to assess organizational factors affecting performance of microfinance institutions in Tanzania. Specifically, the study was carried out to determine how financial factors affect performance of organisation; to find out how client factors affect performance of organisation; to examine how market factors affect performance of organisation and; to explore how organizational capacity in terms of skilled people, adequate man power and fund affect performance of organisation. The study used triangle theory in explaining financial factors in which financial sustainability is among of the factors affecting performance of SELF Microfinance Fund. The study used empirical literatures whereas various literatures were reviewed so as to establish gap. Case study was employed with a sample size of 35 respondents selected by using purposive and simple random sampling procedures. The study used questionnaire, interview and documentary review with reference to study objectives. In addition to that, data gathered through questionnaires were analysed quantitatively while data that were gathered through interview were analysed qualitatively. The study findings indicate that the organization has adequate capital for lending, competitive interest rate and track records in financial management. Moreover, findings show that the organization has client retention rate, client service charter and client outreach. Also, organization has affordable interest rate, sustainable return on investment and low customer attrition rate. It further emerged from the study that, the organization has skilled people and man power, effective management, adequate budget and usage of ICT in carrying out its activities. The study concludes that financial factors, client factors, market factors and organizational capacity affect performance of SELF Microfinance Fund.Through the study findings of this current study, the policy makers can improve and strengthen the performance of microfinance institutions by putting emphasis to the microfinance institutions to continue provide loans with affordable interest rate that will support the clients. |
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