The impact of firm characteristics in access of financing by small and medium-sized enterprises in Tanzania
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Date
2012
Authors
Journal Title
Journal ISSN
Volume Title
Publisher
Canadian Center of Science and Education
Abstract
The contribution of Small and Medium-sized Enterprise (SME) sector in economic development, job creation and income generation has been recognized worldwide. However, these contributions are not effectively harnessed in Tanzania. The main challenge limiting the sector to contribute fully is a shortage of finance. This study examines the impact of firm characteristics in access to debt financing by Tanzanian SMEs. The equation specified access to finance as dependent variable while firm characteristics as independent variable. Data collection was conducted through self-administered questionnaire in a survey of 163 Tanzanian firms. The statistical analysis of data involved Pearson correlation and logistic regression to establish the association between dependent and independent variables. The results indicate that firm’s location, industry, size, business information, age, incorporation and collateral influence access to debt finance. The study recommends that Tanzanian SME operators should maintain attractive firm attributes to stimulate lenders to extend debt financing to their investments.
Description
Full text article. Also available at http://dx.doi.org/10.5539/ijbm.v7n24p108
Keywords
SMEs, Small and Medium-sized Enterprise, Economic development, Income generation, Finance shortage, Investments, Debt financing
Citation
Kira, A. R., & He, Z. (2012). The impact of firm characteristics in access of financing by small and medium-sized enterprises in Tanzania. International Journal of Business and management, 7(24), 108.