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The purpose of this study was to examine the contribution of NMB financial services
towards the development of SMEs in Tanzania. The study was guided by three specific
objectives; namely, to examine the development trend of SMEs in Nyamagana District, to
examine the role played by NMB in supporting SMEs development in Nyamagana
District, to explore means for improving SMEs sector development in Nyamagana
District.
The study used descriptive research design and surveyed 122 SME owners/ operators in
various business categories and 3 NMB employees. It used self administered
questionnaire and interview for selected respondents. The data were analyzed using
descriptive statistics with the aid of SPSS.
The findings showed that SME owners/ operators were engaged in several business
categories; namely, manufacturing services and trade. SME owners /operators first
become NMB customers before they qualify to apply for business loans. SME owners/
operators who have obtained loans are able to increase their business performance in
terms of sales and number of workers they employ. The study also indicated that majority
of SMEs who operated business for a long period perform better in business than those
who are new in business.
The study recommended that NMB provide higher amounts of loans with low interest
rate, give a grace period to new business starters before they start making loan
repayment, also trade finance should be addressed to SMEs to reduce transaction costs
such as transport cost to SMEs. |
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