SMES Access to Financial Services: Tanzanian Bankers' Eye

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dc.contributor.authorMori, Neema
dc.contributor.authorRichard, Evelyn M.
dc.date.accessioned2016-05-13T07:45:44Z
dc.date.available2016-05-13T07:45:44Z
dc.date.issued2012
dc.description.abstractThis paper reports Tanzanian bankers’ reasons for not giving SMEs the amount they request as loans to finance their businesses. Open ended interviews were used to collect primary data from eight interviews in six commercial banks that serve SMEs and which have been in operation for more than five years. Secondary data was obtained from different documents like World Bank reports, brochures and websites of visited banks to mention the few. Findings show that sectors which are perceived as too risky by banks, poor documentation by borrowers which make banks unable to assess their creditworthiness, lack of understanding by SMEs themselves as to why they are doing businesses they do, lack or very limited knowledge on financial management by SMEs, lack of awareness of different products offered by different banks, stagnant businesses as well as lack of proper securitiries to cover their loans are reasons behind banks reluctant to provide loans to SMEs. Findings clearly show that it is still difficult for new SMEs to access finance from banks in Tanzania. It is critical for existing SMEs to put their houses in order to the level that is acceptable by banks if they need to approach banks for loans. Banks in Tanzania need to review their policies on the maximum amount of loans to SMEs to reflect the market demands. At the moment, new SMEs should not have much hope of getting finance assistance from most banks. Further, training institutions should continue educating SMEs on relevant aspect that are important to lenders and lastly, the government should consider providing guarantee to SMEs sectors that are perceived as too risky by banks just like the ongoing initiatives in the agriculture sector.en_US
dc.identifier.citationMori, N. and Richard, E., 2012. SMES Access to Financial Services: Tanzanian Bankers' Eye. Chinese Business Review, 11(2), pp.217-223.en_US
dc.identifier.urihttp://hdl.handle.net/20.500.11810/2014
dc.language.isoenen_US
dc.publisherDavid Publishingen_US
dc.subjectSMEs’ financingen_US
dc.subjectCommercial banksen_US
dc.subjectTanzaniaen_US
dc.titleSMES Access to Financial Services: Tanzanian Bankers' Eyeen_US
dc.typeJournal Article, Peer Revieweden_US
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