Factors That Hinder Access To Credit By Small And Medium Enteprises In Tanzania: A Case Of Dar Es Salaam Region

ABSTRACT

This study investigated factors that hinder access to credit by small and medium

enterprises in Dar es Salaam region. It employed both quantitative and qualitative

methods. Using purposive sampling, a total of 47 respondents were selected to take

part in the study. Data were obtained through semi-structured interviews, structured

questionnaire and documentary review. Quantitative data from questionnaires were

subjected to descriptive analysis.

The findings show that both Small and Medium Enterprises (SMEs) are suffering

from lack of information, training and poor condition for credits imposed by

Financial Institutions (FIs) to SMEs.

The implications of these findings were discussed in terms of policy preparation. It

was found that conditions for credits should be reduced to fit the need of SMEs. It

was further suggested that complex procedures and lack of information should be

taken as serious issues to be dealt with by the government, FIs and SMEs sectors. If

the government manages to solve the mentioned problems, it will improve the

business environment in Tanzania.

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