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Tanzanian Micro Enterprises and Micro Finance

Author

Listed:
  • Lucy Ssendi

    (Lucy Ssendi is a Ph.D. Candidate at Aberdeen Business School, Aberdeen, UK)

  • Alistair R. Anderson

    (Alistair R. Anderson is Professor and Director of the Centre for Entrepreneurship, Aberdeen Business School, Aberdeen, UK)

Abstract

This article explores the nature of micro finance, or micro credit, in rural Tanzania. It begins by examining the types of finance available to the poor who operate micro enterprises. We then consider the intended role and availability of micro credit in alleviating poverty. We find that most institutes which offer loan facilities operate mainly in urban centres, thus restricting accessibility for the rural poor. Moreover, the modest lending conditions have also created an obstacle for the poorest women. The empirical part of our study examines the impact of one institution, the SELF project which is specifically intended to address these issues. By means of a survey, we find that SELF loans have had some benefits in improving the profitability of micro enterprises run by rural poor women, but there seems to be little long–term effect as measured by increases in household assets.

Suggested Citation

  • Lucy Ssendi & Alistair R. Anderson, 2009. "Tanzanian Micro Enterprises and Micro Finance," Journal of Entrepreneurship and Innovation in Emerging Economies, Entrepreneurship Development Institute of India, vol. 18(1), pages 1-19, March.
    • Handle: RePEc:sae:jouent:v:18:y:2009:i:1:p:1-19
    DOI: 10.1177/097135570801800101
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    References listed on IDEAS

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    1. Kenneth Kaoma Mwenda & Gerry Nkombo Muuka, 2004. "Towards best practices for micro finance institutional engagement in African rural areas: Selected cases and agenda for action," International Journal of Social Economics, Emerald Group Publishing, vol. 31(1/2), pages 143-158, January.
    2. Rahman, Aminur, 1999. "Micro-credit initiatives for equitable and sustainable development: Who pays?," World Development, Elsevier, vol. 27(1), pages 67-82, January.
    3. Fred M. Ssewamala & Margaret Lombe & Jami C. Curley, 2006. "Using Individual Development Accounts For Microenterprise Development," Journal of Developmental Entrepreneurship (JDE), World Scientific Publishing Co. Pte. Ltd., vol. 11(02), pages 117-131.
    4. Berger, Allen N. & Saunders, Anthony & Scalise, Joseph M. & Udell, Gregory F., 1998. "The effects of bank mergers and acquisitions on small business lending," Journal of Financial Economics, Elsevier, vol. 50(2), pages 187-229, November.
    5. Chamlee-Wright, Emily, 2002. "Savings and Accumulation Strategies of Urban Market Women in Harare, Zimbabwe," Economic Development and Cultural Change, University of Chicago Press, vol. 50(4), pages 979-1005, July.
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    Citations

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    Cited by:

    1. Funmi (Olufunmilola) Ojediran & Alistair Anderson, 2020. "Women’s Entrepreneurship in the Global South: Empowering and Emancipating?," Administrative Sciences, MDPI, vol. 10(4), pages 1-22, November.
    2. van Rooyen, C. & Stewart, R. & de Wet, T., 2012. "The Impact of Microfinance in Sub-Saharan Africa: A Systematic Review of the Evidence," World Development, Elsevier, vol. 40(11), pages 2249-2262.
    3. Emiel L. Eijdenberg & Kathrin Borner, 2017. "The Performance Of Subsistence Entrepreneurs In Tanzania’S Informal Economy," Journal of Developmental Entrepreneurship (JDE), World Scientific Publishing Co. Pte. Ltd., vol. 22(01), pages 1-22, March.
    4. Wan Nurulasiah binti Wan Mustapa & Abdullah Al Mamun & Mohamed Dahlan Ibrahim, 2018. "Development Initiatives, Micro-Enterprise Performance and Sustainability," IJFS, MDPI, vol. 6(3), pages 1-15, August.
    5. Abdullah Al Mamun & Mohd Asrul Hery Bin Ibrahim & Rajennd A/L Muniady & Mohammad Bin Ismail & Noorshella Binti Che Nawi & Noorul Azwin Binti Md Nasir, 2019. "Observations of Participation in Development Initiatives on Enterprise Income and Asset in Peninsular Malaysia," Journal of Entrepreneurship and Innovation in Emerging Economies, Entrepreneurship Development Institute of India, vol. 5(2), pages 198-213, July.
    6. Alistair R. Anderson, 2015. "Conceptualising entrepreneurship as economic 'explanation' and the consequent loss of 'understanding'," International Journal of Business and Globalisation, Inderscience Enterprises Ltd, vol. 14(2), pages 145-157.
    7. Ojong, Nathanael & Simba, Amon & Dana, Leo-Paul, 2021. "Female entrepreneurship in Africa: A review, trends, and future research directions," Journal of Business Research, Elsevier, vol. 132(C), pages 233-248.

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