| dc.description |
This research on factors influencing loan defaulting among SMEs was carried in SIDO Manyara. Purposely, the study aimed to assess the default of SIDO for the period between 2016 and 2018; determine factors leading the possibility of loan defaults and assess the level of loan default among the selected SMEs in Manyara Region and to borrowers and MFIs. The study also examined income, personal and social factors how they influence loan default to SMEs.
The research used questionnaire and derivative data to collect information from the study area. Random sampling technique was used to pick 140 respondents. Generally, MFIs and informants of the Organization were chosen. For the case of key informants a sample of four staff were selected to answer questions design to get key information for this study. Primary data were gathered physically from the respondents by means of designed questionnaires and other information from key informants whereas secondary data were gathered from already published materials of the organization, periodical magazines and various publications from the organization. Data obtained were analyzed by multiple regression model so as measure the contribution factors in multiple linear regression in SPSS used to estimate the relationship between the factors influencing the borrowers to default. Data were entered in the SPSS and manipulated to get the desired results for analysis.
The result generated from the multiple regression model indicate that business income, personal and social factors were statistical insignificant at (P>0.05). However, age group and gender as controlled variables show the significant level as p = 0.007, p = 0.005.
Based on independent variables, majority of respondents identified that personal and social as major factors of loan default. |
|