MAISHA HURU BLOG

CONTRIBUTION OF SAVING AND CREDIT SOCIETIES LOANS IN IMPROVEMENTS OF MEMBERS HOUSE-HOLD INCOME INTRODUCTION 1.1Background Information Cooperatives were introduced in Tanzania in the early 1930s and developed to remarkable prominence especially during the first decade of independence 1960 ICA (2001). Since independence Tanzania has practiced different development models. In order to reduce the high level of poverty and income inequality among Tanzanians a significance number of savings and credit cooperative societies (SACCOS) were formed in different part of Tanzania by the end of 1960s, ICA (2001). SACCOS had become very instrumental in savings mobilizations in1975, provision of micro loans to their respective members in both rural and urban areas. In rural areas, they also worked as important organs in development of agriculture through provision of credit to farmers to purchase agriculture inputs. In this case their activities supplemented the activities of formal farmer’s coo...

  ANALYSIS OF FACTORS DETERMINING SMALL BUSINESS PERFORMANCE INTRODUCTION Background Information In order to achieve sustainable economic growth in developing countries, it is crucial for enterprise performance to be improved. A positive relationship has been documented between small-business development and economic growth in developed countries (Harris and Gibson, 2006; Sauser, 2005). Small businesses have been the way across that accelerated commercial development and through which quick development has been attained (Francis, 2000). Furthermore, small business has been understood as a feeder ability to large- scale industries (Wolfenson, 2001). Strong economies like the United States of America and the United Kingdom trace their development from growth and development of their SMEs (Hatega, 2007).     According to Subhan et al. (2013), Small and Medium Enterprises are the driving force for the promotion of an economy. Due to their significance, all the countri...

MICRO-CREDIT AND GROWTH OF SMALL AND MEDIUM ENTERPRISES   1.0 INTRODUCTION 1.1 Background of the Problem The importance of financial services to Small and Medium Enterprises (SME’s) cannot be overemphasized. Small and medium enterprises, particularly those in developing countries need a range of enabling and sustainable financial services in order to enable them to effectively exploit abundant resources in their areas and fulfill their productive potential (Nwanna, 2000; and Akisimire, 2010). It has however been noted by scholars like Hogan (2001) that the financial service sector focuses its success on the effective management of credit risk. This has therefore triggered financial services providers to put more emphasis on credit terms while lending to clients especially the SME borrowers. This is because MFIs consider lending to small businesses as profitable though a risky business. This leaves MFIs with no option but to lend to SMEs though at unfavorable credit terms. Cob...

 CONTRIBUTION OF EMPLOYEE-BASED SAVINGS Background to the study  Savings and credit cooperative Societies (SACCOS) are Cooperative Societies which are owned by people with a common bond. In this regard, people voluntarily join together and agree to contribute their money to the cooperative and lend that money to one another during times of financial hardship at an agreed rate of interest for productive and provident purposes. As such it is a cooperative which operates in the financial system; it is a legal entity, which enhances pooling together finance for the benefit of members (URT, 2003).    The development of SACCOS in the world started at different times in different countries. In 1849, in Germany, William Raiffesein started the first savings and credit cooperative to assist farmers to overcome economic problems. The type of SACCOS which was formed was the Raiffesein model.   Raiffesein wanted to make credit accessible to farmers based on Christ...