Role of Banks on Industrialization
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Mzumbe University
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A dissertation submitted as partial fulfilment of the requirements for Award of
Master of Business Administration in Corporate Management of Mzumbe
University
The study assessed the role of banks on industrialization in Tanzania. The specifically it assessed on the identifiable sectors that influence banks to support industrialization, identified the role of banks on industrialization and evaluated the extent at which banks support industrialization. The study used the case study design of which primary data as well as secondary data gathered. This study combined qualitative and quantitative research approaches (multi-strategy). Data were collected from selected banks and small industries owners by using questionnaires then were analyzed by Statistical Packages for Social science (SPSS). The study findings revealed that,the identified sectors that banks support on industrialization are manufacturing sectors, processing and assembling sectors. Banks support small industries by provision of credit, providing financial management, business skills and market assessment. Moreover, it was revealed that there are identifiable roles of banks on industrialization which enable availability of capital, availability of markets, good procurement and purchasing policies. As well as there was benefits of industries to banks which are capital formation, creation of credit, channelizing of fund to productive investment and utilization of resources. The study concludes that there positive and significant effect of bank on industrial development in Tanzania through loans and other activities though there should be other initiatives from government through polices. The study concludes that manufacturing, processing and assembling are the sectors that are highly supported by the banks through imposing funds and other relating banks services. The study agrees with Mwania, (2011) and Kinyua, (2014) that banks affects performance of small industries. Financial support is key in any business and most of the reviewed studies do talk about it. Unfortunately, it is notable that banks alone cannot make small industries successful. As such there is a government which is a regulator of the business environment and both industries and banks have to comply with the set of laws and regulation in the policies given.
The study assessed the role of banks on industrialization in Tanzania. The specifically it assessed on the identifiable sectors that influence banks to support industrialization, identified the role of banks on industrialization and evaluated the extent at which banks support industrialization. The study used the case study design of which primary data as well as secondary data gathered. This study combined qualitative and quantitative research approaches (multi-strategy). Data were collected from selected banks and small industries owners by using questionnaires then were analyzed by Statistical Packages for Social science (SPSS). The study findings revealed that,the identified sectors that banks support on industrialization are manufacturing sectors, processing and assembling sectors. Banks support small industries by provision of credit, providing financial management, business skills and market assessment. Moreover, it was revealed that there are identifiable roles of banks on industrialization which enable availability of capital, availability of markets, good procurement and purchasing policies. As well as there was benefits of industries to banks which are capital formation, creation of credit, channelizing of fund to productive investment and utilization of resources. The study concludes that there positive and significant effect of bank on industrial development in Tanzania through loans and other activities though there should be other initiatives from government through polices. The study concludes that manufacturing, processing and assembling are the sectors that are highly supported by the banks through imposing funds and other relating banks services. The study agrees with Mwania, (2011) and Kinyua, (2014) that banks affects performance of small industries. Financial support is key in any business and most of the reviewed studies do talk about it. Unfortunately, it is notable that banks alone cannot make small industries successful. As such there is a government which is a regulator of the business environment and both industries and banks have to comply with the set of laws and regulation in the policies given.
Keywords
Banks on industrialization in Tanzania