1324574
doi
10.5281/zenodo.1324574
oai:zenodo.org:1324574
Shirima, Andrew
University of Iringa(UoI) – Tanzania
Nandonde, Felix Adamu
Sokoine University of Agriculture(SUA) - Tanzania
Financing Preference for MSMEs in Rural Tanzania
Lubawa, Galinoma
Institute of Rural Development Planning (IRDP); Tanzania,Email: galinoma@gmail.com
info:eu-repo/semantics/openAccess
Creative Commons Attribution 4.0 International
https://creativecommons.org/licenses/by/4.0/legalcode
Micro and small rural business, financing preferences, business cycle
<p>The purpose of this study is to determine factors and identify the preferred type of financing among small business in rural areas in Tanzania. Written survey was used for data collection and the sample size was 102. Quantitative method was used to test the financing preference. It was found that business expansion (54%) and family obligations (32%) were the determining factors for external financing in the developmental stage. In the start-up stage of the business, the study finds that business owners preferred internal financing (61.7%) from their own savings for financing business. In the developmental stage, they preferred external borrowing from Savings and Credits Cooperatives Societies (SACCOS) (<em>W = 161.8</em>), banks and other MFIs (<em>W=57.2).</em> The small business owners’ views SACCOS as most preferred type of financing due to its accessibility and impact on their businesses. The study concludes that internal and external funding is the backbone of rural MSMEs’ financing in Tanzania. We recommend authorities to strengthen rural SACCOS to bring significant impact on rural business development.</p>
Zenodo
2018-03-31
info:eu-repo/semantics/article
1322689
1
1579536960.218721
257506
md5:61f22f77d376bd51a325d20bba7630dd
https://zenodo.org/records/1324574/files/ARTICLE 2, Vol 4, No 1, Financing Preference for MSMEs in Rural Tanzania.pdf
public
10.5281/zenodo.1322689
isVersionOf
doi
Inter. J. Res. Methodol. Soc. Sci.
4
1
18-35
2018-03-31