The impact of dividend policy on market share price:

Abstract

This study was set to determine the elements of financial ecosystem in Tanzania while looking over to bridge the gap created to SMEs in Tanzania due to the fragmented ecosystem. The Tanzania Development Vision 2025 highlighted that small and medium sized enterprises (SME) sector as among the key contributor to the long-term development. However, key constraints remain for SME development includes undeveloped infrastructure, market access, ineffective business development services, technology, unfavorable legal frameworks and limited access to finance. This study explored the financial ecosystem for SMEs in Tanzania, which substantially affect their growth, development and low contribution to the GDP in Tanzania. Specifically, the study aimed to identify the elements of financial ecosystem in Tanzania for the Small Medium Enterprises. The study employed a descriptive design in which purposive sampling techniques was used to obtain study sample of 120 SME’s owners while using questionnaires and interview as data collection methods. The finding indicate that majority of the respondents argued that financing schemes, education and awareness, debt resolution programs and access to credit to be elements of financial ecosystem. To contribute in bridging the gap existing in the financial ecosystem, this study recommend various debt resolution mechanism and programs should be enhanced so as to enable Small SME’s owners to acquire various loans and credit from financial institutions with assurance of the repayment