MoCU Repository

Relationship lending and credit access by small enterprises in Moshi municipality, Tanzania

Show simple item record

dc.contributor.author Mawien, Santo K. D.
dc.date.accessioned 2023-12-19T05:10:29Z
dc.date.available 2023-12-19T05:10:29Z
dc.date.issued 2023
dc.identifier.uri http://repository.mocu.ac.tz/xmlui/handle/123456789/972
dc.description A full text thesis from Community and Rural Development en_US
dc.description.abstract Small enterprises drive economic growth, reduce poverty, and create job opportunities in Tanzania. This study aimed to assess the influence of relationship lending on credit access by small enterprises in Moshi Municipality, Tanzania. The study's objectives were to examine the relationship lending practices by small enterprises, determine the influence of the length of relationship on credit access by small enterprises, and analyse the association between multiple lending relationships and credit access by small enterprises. Data were collected from 290 small enterprises in Moshi Municipality using a cross-sectional research design and a survey questionnaire. Descriptive statistics and logistic regression models were used in data analysis. The study revealed that most small enterprise owners accessed loans from banks once per year with an average repayment period of one to six months. The study also found that the length of the relationship and collateral had a significant and positive influence on small enterprises' credit access (0.596, Wald χ2 (1) = 5.092, p=0.024; 0.357, Wald χ2 (1) = 6.851, p=0.009). Borrowing from multiple lenders was also found to have significant positive influence on small enterprises credit access (2.186, Wald χ2 (1) = 15.393, p= 0.000, while services and size of the firm (-1.749, Wald χ2 (1) = 9.888, p=0.002; -0.221, Wald χ2 (1) = 5.481, p=0.019 were found to have significant negative influence on small enterprises credit access. In conclusion, the length of relationship, collateral, and multiple lending relationships significantly influence small enterprises' credit access. It is recommended that small enterprise owners should stay in close contact with their lenders. The government also needs to increase its spending on credit guarantee programs to improve access to loans for start-up businesses, small enterprises, and individuals without established credit histories. en_US
dc.language.iso en en_US
dc.publisher Moshi Co-operative University (MoCU) en_US
dc.subject Lend en_US
dc.subject Credit access en_US
dc.subject Small enterprises en_US
dc.subject Relationship en_US
dc.subject Tanzania en_US
dc.subject Moshi en_US
dc.title Relationship lending and credit access by small enterprises in Moshi municipality, Tanzania en_US
dc.type Thesis en_US


Files in this item

This item appears in the following Collection(s)

Show simple item record

Search MoCU IR


Advanced Search

Browse

My Account