A Dissertation Submitted in Partial Fulfillment of the Requirements for the Award of the Degree of Master of Business Administration (MBA)-Corporate Management of Mzumbe University
This dissertation aimed to assess the accessibility to finance to Small and Medium Entrepreneurs SMEs in Zanzibar Town Region. Study intended to assess and find out the constraints factors of SMEs in accessing funds that affect the performance of entrepreneurs in the Region, and find out whether the access to finance help all small size of enterprises in the Region, also the study intend to identify the alternative sources of finance as well as assess the government support for the accessibility of fund to the growth of SMEs and to find out ways of improving performance of entrepreneurs.
The research was conducted in Entrepreneurs level, financial institutions and the Government Organizations which support entrepreneurs in Zanzibar Town Region. The study covered Urban and Western Districts in Zanzibar. Two types of data were collected primary and secondary by using questionnaire, interview, observation and documentation.
The findings prove that there has been a positive outcome of people engaging in entrepreneurial activities which alleviate poverty at family level through getting daily income and house rent, paying school fees and paying medical bills and hence alleviate poverty in household level.
The study revealed the obstacles which entrepreneur faced in accessing to finance include high collateral requirement to secure loans, high interest rates, long application procedures.
On other hand there are some factors which facilitate the entrepreneurs which including institutions which support them financially by providing loan and training. Such training offered to entrepreneurs are like identifying business opportunity that surround them, how to keep business records, how to develop some skills in planning and market of their products and loan or credit management. These trainings are offered by local government experts and officers from vikoba/Saccos, non government organization
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such as PRIDE, FINCA and financial institutions like CRDB Bank and Zanzibar National Chamber of Commerce, Industries and Agriculture (ZNCCIA).
The study come up with recommendation that, provision of training on how to run the business successful has to be enhanced as most of them lack entrepreneurial skills and other skills such as record keeping which can prevent their business from loss and business stagnation.