Browsing by Author "Salia, Paul J."

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Credit characteristics and business performance: a survey of women owned microenterprises in Tanzania
(Asian Business Consortium | ABR, 2014) Salia, Paul J.; Mbwambo, Jonathan S.
This article provides assessment of the effects of four credit characteristics including size, interest rate, repayment period and borrowing experience on business performance. The article makes use of survey data collected from 217 women microcredit clients from Arusha, Dar es Salaam and Mwanza regions in Tanzania. Bivariate correlation analysis was used to find out specific effect of each of those four credit characteristics on three business performance measures namely total sales revenue, net profit and business net worth. The combined effect of all four credit characteristics on business performance was estimated by a multiple linear regression model. The findings revealed that size of credit was positively correlated with total sales revenue and business net worth at significant level. Interest rate was negatively correlated with all three measures of business performance at significant level. It was also found out that repayment period was positively correlated with all three business performance indicators at significant level. Furthermore, the study established that borrowing experience was positively correlated with total sales revenue at significant level but not with other two indicators. The model accounted for 25% of sales revenue, 9% of net profit and 28% of business net worth.
Does microcredit make any difference on borrowers’ businesses? evidences from a survey of women owned microenterprises in Tanzania
(International Journal of Social Sciences and Entrepreneurship, 2014) Salia, Paul J.; Mbwambo, Jonathan S.
The objective of this paper is to examine whether participation in microcredit has any effect on the performance of women owned microenterprises in Tanzania. To that end, the article utilized survey data collected by use of questionnaire from a total 217 borrowers and 183 non-borrowers in three major cities in Tanzania including Arusha, Dar es Salaam and Mwanza. The study found out that businesses of borrowers were performing significantly better than those of non-borrowers on total sales revenue and business net worth. Although mean net profit for borrowers was higher than non-borrowers, the difference was not statistically significant. The paper concludes that microcredit is a useful tool to alleviate poverty among women through income generation resulting from their involvement in microenterprise activities. It further calls for consorted efforts by responsible government agencies and commercial banks to scale up outreach of microcredit services to women through, among other initiatives, provision of financial and technical support to member- based savings and credit associations.