Abstract: 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 applied 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 it’s 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.
Keywords: Credit access, Growth, Microcredit, Microenterprises, Microfinance.
Title: Relationship between Access to Microcredit and Growth of Microenterprises among Clients of Vision Fund Microfinance in Tanzania
Author: Paul Joseph Ngeresa, Dr. Samuel Obino Mokaya, Raphael Mwiti Gikunda
International Journal of Management and Commerce Innovations
ISSN 2348-7585 (Online)
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