Performance Of Financial Institutions On Small Business In Tanzania: A Case Of Tanzania Postal Bank Dodoma Branch

ABSTRACT

The study was focused on asses performance of Financial Institutions on small Business in Tanzania specifically in TPB branch Dodoma. It was guided by the three specific objectives which were: to examine the extent loan issuance to Small business in Tanzania, to evaluate the roles of financial institutions in the performance of Small business in Tanzania and to investigate challenges in accessing and utilization of credit. The study was employed cross sectional research design in which sample size of 55 respondents were employed whereby probability and non-probability sampling employed. Social survey and interview method of data collection were employed whereas questionnaire and interview as tools for data collection applied. Data analysis employed both qualitative and quantitative method whereas SPSS version 21 used in data analysis. The findings reveal that; financial institutions provide loans as a seed for the establishment and expansion of the small business in the study area which helps them to establish and strengthen their business. Also financial institutions provide awareness creation to small business on how to utilize their loans. However; the findings reveal that most of the challenges on accessing and utilization of loans are lack of mortgage, high interest rate as well as lack of steady cash flow and poor management of loans. Eventually; study concerning to performance of financial institutions on Small business is of most important since the majority of Tanzanian engage in Small business and financial institutions are the key for their success. The study recommends that in order to ensure effective performance of financial institutions on SBs in Tanzania; awareness creation is of more important so as to ensure proper utilization of loans and improve living standards of Tanzania who are mostly depended on SBs.