Proceedings of the 50th International Academic Conference, Paris

THE EFFECT OF MICROFINANCE SERVICES ON THE PERFORMANCE OF SMALL AND MEDIUM ENTERPRISES (SMES) IN DAR-ES-SALAAM REGION, TANZANIA

ANICETH KATO MPANJU

Abstract:

The major purpose of this paper is to analyze the impact of microfinance services on SME’s performance in Dar-es-Salaam region, Tanzania. Using a sample of 350 SMEs, the study adopted a descriptive-correlation research design an econometric analysis using statistical package for social sciences (SPSS) version 24. The results show that microfinance services in the form of financial intermediation and enterprise development had to a large extent adequate to small and medium-sized entrepreneurs. Then from above analysis we may conclude that there existed a strong relationship between the extent of microfinance services and the performance of SMEs and that microfinance services influenced the performance of the SMEs in the Dar-es-Salaam region.

Keywords: Microfinance services, SMEs, Microfinance institutions, Financial literacy and enterprise development

DOI: 10.20472/IAC.2019.050.026

PDF: Download