Abstract:
Women Entrepreneurs plays a substantial role in the economic development in both
developed as well as developing countries. In Tanzania women contribute much though their
contributions are still insignificant due to a number of barriers towards their financial
inclusion.This study’s objective is to determine various challenges that faces women
entrepreneur in accessing loans from commercial banks. To meet the objectives of the study a
sample of 120 respondents was used. Primary data was collected using close ended
questionnaires. The results obtained through the quantitative approach usedindicated that
there is a positive relationship between interest rate, financial literacy and collaterals with
accessibility to finance. The reliability and validity of scale measurement for measuring these
factors was proven by the value obtained from Cronbach’s alpha test. Both descriptive and
inferential analyses were conducted to analyze the data obtained. Pearson correlation was
conducted so as to determine the relationship that exists between the dependent and
independent variables. Basing on the results, four factors were observed to have an influence
on accessibility to finance where interest rates, financial literacy, and collaterals were
observed to have a positive influence while loan terms and condition factor had a negative
impact to the dependent variable. Basing on the findings the study recommends that financial
institutions specifically commercial banks should be gender sensitive in terms of collateral
demanding and they should come up with products and services that are responsive to
specific needs of women entrepreneurs during loan acquisition. On interest rates the
government through the Central Bank should intervene to make them affordable and friendly.
lastly commercial bank should develop programs to provide education, training and
information, this can be attained by extending a line of employees that are specifically for this
purpose. Also the study recommends for further study so as to fill the gaps that might have
been left out by the researcher.
