Intervention with credit in micro-enterprises is crucial for the establishment and growth of micro-enterprises. Intervention of this sort, however, induces changes in the behavior and attitude towards risks depending on the repayment mechanisms in place. From the entrepreneurial spirit, after accessing the loan, the borrowing agents are likely to make decisions that are associated with higher risks than would have been otherwise. However, if the repayment mechanisms are so draconian, the opposite can occur; making micro-enterprise operators more risk averse, who like to maintain the status quo, and who only strive to be able to service the loan in terms of meeting the repayment requirements. Using a case study of Morogoro region in Tanzania, the study finds that the repayment motive outweigh the entrepreneurial acumen induced by credit, making operators who have borrowed more risk averse than the potential borrowers. We argue that this tendency hinder initiatives to go for large amount of credit in the subsequent rounds and retards the expansion and growth of microenterprises. This finding points to the needs for new repayment mechanisms that reduce the tradeoff between the maximization of the repayment rates and the further development of entrepreneurial spirit.