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.