Browsing by Author "Masalumarcel, Salum Misungwi"

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    The challenges facing microfinance institutions in supporting entrepreneurship in tanzania case study of Mombo Talanta saccos in Korogwe district
    (Sokoine University of Agriculture, 2011) Masalumarcel, Salum Misungwi
    Financial institutions play an important role in Tanzania’s economic progress. Failure of financial institutions, particularly insufficient or ineffective institutions result in high transaction costs limiting poor people’s accesses to formal financial services. This research paper discusses the importance of SACCOS in mobilising savings and credit through providing low-income people with financial services in Tanzania. The main purpose of this study is to find out weather savings and credit cooperative societies face problems in supporting the growing entrepreneurial activities in respective areas of the country. This is done by analysing the Mombo T SACCOS as a case study. Results obtained show a number of challenges which need to be addressed these include: Weak sources of income for the organization, poor loan repayment, lack of effective strategic planning skills, lack of entrepreneurial skills among SACCOS stake holders, increased competition, poor remuneration of employees, lack of adequate capacity to assess and manage risks, increased loan demand, poor accessibility of cooperative services from the district level, failure in supporting the small entrepreneurs, use of traditional technology in daily activities, lack of publicity programme on the firm’s activities, lack of research on customer wants/services, and lack of external auditing. To improve performance of Mombo T SACCOS the following are recommendations of the study; use of Strategic management which applies effective strategic planning as the best alternative, putting in place an effective information system to facilitate decision making, putting efforts in place to sensitize members and the general public on SACCOS benefits, facing up the challenges of providing innovative products and services; strengthening capitaliii and loan base; provision of key knowledge /skills to leaders and staff to modernize their activities; encourage use of better loan appraisal and follow-up methods, introduce use of corporate and other planning tools.