Authors :
Zawadi Ally; Dr. Sostheness Ruheza; Dr. John Pesha; Andrew John Mntambo
Volume/Issue :
Volume 8 - 2023, Issue 11 - November
Google Scholar :
https://tinyurl.com/2s43cwm3
Scribd :
https://tinyurl.com/4wsfy5jd
DOI :
https://doi.org/10.5281/zenodo.10171491
Abstract :
The study intended to assess economic factors
affecting loans payment among women entrepreneurs, to
examine institutional factors affecting loans payment
among women entrepreneurs and to identify social
factors affecting loans repayment among women. Study
was conducted in Dar es Salaam region, Kinondoni
Municipality. Simple random and purposive sampling
techniques were used to get a total of 60 respondents and
8 key informants from The ASA international. Data was
collected through questionnaires, FGD, interview and
documentary review and analysed by using the SPSS
version 20 and deductive approach. The findings
revealed that women entrepreneurs’ repayment rates in
the study area were low. The economic factors that
influenced women’s low repayment rates include
Economic instability, financial education/financial
literacy and repayment frequencies, institutional factors
included high interest rates, locations of the MFIs,
transaction cost and weak institutional credit appraisals
and Social factors included borrower characteristics,
moral hazards, education, health and family sizes. The
study observed that most women were taking loans but
they were not using such loans for what they requested
for. Financial management education was also not
enough disseminated to the respondent, This led to them
to use local knowledge and experiences to run their
businesses. It has been recommended therefore that the
loans provided should relate to the financial capabilities
of borrows to avoid large loans and end up with defaults
or late payments.
Keywords :
Loan, Loan Repayment, Women Entrepreneurs, Microfinance Institutions
The study intended to assess economic factors
affecting loans payment among women entrepreneurs, to
examine institutional factors affecting loans payment
among women entrepreneurs and to identify social
factors affecting loans repayment among women. Study
was conducted in Dar es Salaam region, Kinondoni
Municipality. Simple random and purposive sampling
techniques were used to get a total of 60 respondents and
8 key informants from The ASA international. Data was
collected through questionnaires, FGD, interview and
documentary review and analysed by using the SPSS
version 20 and deductive approach. The findings
revealed that women entrepreneurs’ repayment rates in
the study area were low. The economic factors that
influenced women’s low repayment rates include
Economic instability, financial education/financial
literacy and repayment frequencies, institutional factors
included high interest rates, locations of the MFIs,
transaction cost and weak institutional credit appraisals
and Social factors included borrower characteristics,
moral hazards, education, health and family sizes. The
study observed that most women were taking loans but
they were not using such loans for what they requested
for. Financial management education was also not
enough disseminated to the respondent, This led to them
to use local knowledge and experiences to run their
businesses. It has been recommended therefore that the
loans provided should relate to the financial capabilities
of borrows to avoid large loans and end up with defaults
or late payments.
Keywords :
Loan, Loan Repayment, Women Entrepreneurs, Microfinance Institutions
