Socioeconomic Factors Affecting Efficient Utilization Of Micro Credit Among Women In Morogoro Municipality

ABSTRACT

This study was conducted to identify socioeconomic factors affecting efficient utilization of Micro Credit among women in Morogoro Municipal. Specifically, the study examined major economic activities that women perform with credit, assessed performance of women activities, identified socioeconomic factors influencing efficient utilization of Micro Credit and determined the extent to which credit money was spent on unintended activities. The study involved 80 respondents in which 75 were Micro credit recipients and five were key informants from five Micro Financial Institutions in Morogoro Municipal. Snowball and Purposeful sampling were used to identify respondents. Data were collected using structured questionnaire, FGDs and interview schedule, and by reviewing secondary data from several sources. Descriptive and multiple response statistics such as mean, frequencies and percentages were used. Qualitative data from Micro Credit recipients and key informants were summarized and reported. Findings showed majority (60.4%) of women entrepreneurs are engaged on clothing and food items projects which include ‘Mama Lishe’ and ‘Genge’. Few (6.9%) of the respondents had no project. Results showed that few women recorded negative gross margins and fewer 5.3% had gross margin above 500 000/=. It was noted that socioeconomic factors that affect efficient utilization of Micro credit among women are amount of loan, lack of training in business management, poverty (income status), repayment schedule, business related problems and high interest rate. Data from key informants noted Micro entrepreneurs diverge credit to food, clothing and educational related expenses. Study results shows that majority of respondents diverge credit to food and clothing.