International Journal of Academic Research and Development

International Journal of Academic Research and Development


International Journal of Academic Research and Development
International Journal of Academic Research and Development
Vol. 3, Issue 6 (2018)

The influence of credit access on growth of microenterprises in Tanzania: Case of clients of vision fund microfinance bank


Paul Joseph Ngeresa, Dr. Samuel Obino Mokaya

The study sought to determine the extent to which access to microcredit was a significant predictor of growth of microenterprises in Tanzania. A descriptive survey was conducted to apply to gather data from clients and employees of Vision Fund Microfinance. Data was collected from a sample of 80 participants who comprised of microenterprise owners, credit officers and credit committee members selected through stratified random sampling. A semi-structured questionnaire was utilized as a means of data collection. Before its administration the instrument had been checked for face and content validity, and its internal consistency determined through Cronbach alpha. Logistic regression was conducted to assess if credit access was a significant predictor of the likelihood of microenterprises growth. The study revealed that credit access accounted for 23.3% variance in growth of microenterprises (Nagelkerke R2=.23). The results indicated that credit access was a significant significant predictor of growth of microenterprises (ß =3.096, Wald’s χ2= 7.96, df=1, p=<.05. This implies that odds of predicting the likelihood of growth of microenterpises improves by.05 units for each unit increase in access of credit facilities. In conclusion, microcredit access is a key ingredient to growth of microenterprises. In order to improve upon access to credit access, MFIs (microfinance institutions) should look on possibilities of reducing costs of microcredit to make it accessible to entreprenuers. This would include but not limited to diversification of credit services and reviewing collateral requirements.
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How to cite this article:
Paul Joseph Ngeresa, Dr. Samuel Obino Mokaya. The influence of credit access on growth of microenterprises in Tanzania: Case of clients of vision fund microfinance bank. International Journal of Academic Research and Development, Volume 3, Issue 6, 2018, Pages 49-52
International Journal of Academic Research and Development International Journal of Academic Research and Development