Evaluating the Challenge Facing Women

Abstract

The study aimed at evaluating the challenges facing women entrepreneurs in accessing credit in Nachingwea district. The study used the following specific research objective such as to examine the procedures involved in credit accessibility among women entrepreneurs, to identify different types of risks considered by lenders in financing women owned business and to find out strategies needed to improve loans provisions to women entrepreneurs. Descriptive research design was used as a research design and the population for the study were 264 women entrepreneur's respondents while 16 respondents were sales managers and credit officers as the key informants from surveyed financial institutions. To achieve the purpose data were collected using Interview and questionnaires. Data were analyzed using descriptive statistical technique as a processing component of SPSS software computer program. The study concluded that the procedures involved in credit accessibility among women entrepreneurs includes whether evaluation of loan request and preparing loan agreement, Loan request and site visit were the main procedures involved in credit accessibility among women entrepreneurs. In the second objective, the study conclude that failure to repay the loans and Low business experience were the types of risks considered by lenders in financing women owned business were the main types of risks considered by lenders in financing women owned business. On the issues of the strategies needed to improve loans provisions to women entrepreneurs, the study concluded that Training business women, Lowering interest rate and Use of movable properties as security were the strategies needed to improve loans provisions to women entrepreneurs. The study recommended that the efforts of Tanzanian Microfinance Institutions (MFIs) should be streamlined to meet the standards set by BOT in Tanzania. Microfinance institutions in Tanzania also need to review their policies on the maximum amount of loans to women entrepreneurs to reflect the market demands and profitability, training institutions should continue training women entrepreneurs on relevant aspect that are of important to lenders, loans procedures, proper loan utilization, effective loan repayment and liquidation and Financial institutions in Nachingwea district council should come up with a special package of products which are not mainly pegged on collateral as the major requirement of securing finance by women entrepreneurs. This will boost confidence in women entrepreneurs who may require to expand their business enterprises but shy aware due to stringent rules