Determinants of Relevancy of Micro Financial Services to SMEs and Clients’ Responsiveness in Tanzania: A Stakeholders Approach

Abstract

The overall objective of the study was to investigate factors for the relevancy of micro financial services to Small and Medium Enterprises (SMEs) in Tanzania. For this purpose five main factors were considered to have influence on the relevancy of Micro financial services to Small and medium enterprises have been studied using correlation coefficient matrix and analysis of Chi square to measure the significance of the relationship. The results of the analysis revealed that there is weak relationship between underlying factors (the selected factors) and relevancy of Micro financial services. Consequently, clients’ responsiveness toward relevancy of Micro financial services also seems to be questionable. Therefore, further studies need to be conducted to establish what other factors that may influence relevancy of Micro financial services to SMEs in Tanzania.

Key words: Micro financial Services, Small and Medium Enterprises, Relevancy of Micro financial services, Clients’ responsiveness, Stakeholders Approach