Microfinance And Growth Of Small Scale Agribusiness Enterprises In Tanzania A Case Study Of Private Agricultural Sector Support (Pass)

ABSTRACT

The objective was to establish the role of micro finance towards the growth of small scale Small Scale Agri-Businesses enterprises. The study used a qualitative analysis of study findings. The specific objectives of the study were;

• To ascertain the benefits of microfinance to small scale agribusiness enterprises

• To investigate the impact of PASS on small scale agribusiness enterprises

• To establish who the beneficiaries of PASS services are.

• To investigate the challenges facing PASS in its microfinance service delivery to small scale agribusinesses.

The research was a case study of Private Agriculture Sector Support. An explanatory, analytical, quantitative as well as qualitative research design was used. The research analyzed changes in the independent variables over a period of time against changes in the dependant variable it showed the extent to which microfinance had impacted small scale agribusiness enterprises. The findings showed the biggest challenge facing PASS was in providing the loan services to remote areas. IT was seen that this led to the majority of beneficiaries

being medium sized enterprises of which only 48% were directly involved in agribusiness

activities. It was concluded that the major challenge faced by PASS was distributing the services to its principal target group of Small Scale Agri-Businesses. Major recommendations included; The donor community should be involved in the planning and implementation of the program. This would ensure that the program can cater for more individuals and small scale agri-businesses. PASS should redesign its programs so as to be more refined to the needs of its main beneficiaries.

This should also be in line with carrying out sensitization programs on how PASS benefits the concerned potential beneficiaries. The government should provide further sensitization so that the key intended beneficiaries know about what PASS can do for them.