Browsing by Author "Luoga, Venceslaus Patrick"

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    Performance of group based semi-formal credit on sustainable livelihoods of micro entrepreneurs: a case study of pride Tanzania
    (Sokoine University of Agriculture, 2008) Luoga, Venceslaus Patrick
    The purpose of this study was to evaluate the performance of group based credit services and its implications on the micro-entrepreneur’s livelihood. Specifically the study aimed at (i) identifying socio-economic factors that determine the loan acquisition from group- based credit services by the micro-entrepreneurs; (ii) investigating the loan repayment performance within the group and to credit provider and (iii) assessing the impact of credit on the livelihoods of micro-entrepreneurs. Data were collected from a sample of 120 micro-entrepreneurs in Iringa District who were beneficiaries of PRIDE Tanzania. Random sampling technique was used to select the respondents. Data analysis employed both descriptive and quantitative methods. The study revealed that majority of micro­ entrepreneurs were females. The main source of initial capital was own savings. Empirical results show that the initial capital, net income, experience in business and number of times the entrepreneurs received credit had positive significant influence on the amount of credit received by micro-entrepreneur. Furthermore the study found that credit had significant impact on fixed assets ownership where borrowers had more assets than non­ borrowers. The findings showed that there was high repayment performance (more than 99%) to credit institution but there was high default within the group. The study revealed that credit which is granted for business activities is, in many cases diverted to finance family needs like educating children and medical expenses. Micro-entrepreneurs complained of the high interest rate charged, small loan size, short repayment period and weekly meeting limit the growth of their business. The study suggests that PRIDE Tanzania should set policies that would enable young micro-entrepreneurs who wish to start business but lack capital to access credit. The interest rate should be lowered. It should consider the possibility of increasing the grace period. Training should also provide micro-entrepreneurs business skills. It has to be flexible by providing loans size based on business status and not on the frequency of borrowing-.