Impact of Loans from Micro-finance Institutions on Financial Performance of Small to Medium Enterprises in Zimbabwe. Case of Glenview Furniture Industry.

Author
Varniser, Zvoushe
Title
Impact of Loans from Micro-finance Institutions on Financial Performance of Small to Medium Enterprises
in Zimbabwe. Case of Glenview Furniture Industry.
Abstract
This research assessed the impact of loans from Micro-finance Institutions on financial performance of Small to Medium Enterprises in Zimbabwe using Glenview Furniture Industry as a case study. Research objectives for the study were as follows, to evaluate the degree to which SMEs operating in Glenview Furniture Industry have access to loans from MFIs, to examine challenges being faced by SMEs in accessing loans from MFIs and to assess the relationship between SMEs performance and access to loans from MFIs. This research used both qualitative and quantitative descriptive approaches as its research design. Target population for this research was 110 SME owners operating in Glenview Furniture Industry. Data was collected through interviews and questionnaires. 95 SME owners out of the 110 were able to participate in the research survey, resulting into a response rate of 86.36%. SPSS Software Package was used for data analyzation. Research findings were that loans from MFIs were not accessible to SMEs in Glenview Furniture Industry. The SMEs also face challenges such as, limited collateral, high interest rates, lack of surety and lack of permanent structures when accessing for loans from MFIs. This research draws a conclusion that loans from MFIs are not accessible and that loans from MFIs have a weak impact of financial performance of SMEs. The researcher suggests that permanent structures must be built for the SMEs to increase their chances of getting loans. There is also need for financial management trainings to enhance the SMEs finance handling.
Date
JUNE 2024
Publisher
BUSE
Keywords
Micro-finance Institutions, Small to Medium Enterprises, loans,
Supervisor
Mr. Mabhungu
Item sets
Department of Accountancy
Media
VARNISER ZVOVUSHE.pdf

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