The main concern of this paper is to examine the impact of loan on the improvement of Small medium enterprises (SMEs) in Zanzibar. The study concentrated on amount of loan provided by BRAC and cost of charged by BRAC to SME’s in Zanzibar. The study conducted in West “A” District-Unguja. The study has mainly employed quantitative research approach with appropriate method of analysis for this study. The sample size for this study consists of 112 SMEs members supported and registered by BRAC, and survey questionnaire was used as data collection instrument. To achieve a credible result for this study, a standard multiple regression was used to analyze and interprets the collected data from relevant respondents. The results revealed that two predictors (loan amount and cost of loan) had a significant effect or impact on the outcome variable (SME’s improvement). In other words, the results of predictor variables show that; loan (β = 0.076, t = 1.977, p < 0.05), cost of loan (β = -0.900, t = -23.322, p < 0.05). The study concluded that the amount of loan received by loan beneficiaries are no affordable and not sufficient to meet the expectations of loan beneficiaries. Also, unfavorable loan fees payment slows down the SMEs operation. Finally, the study recommended that micro finance institutions should prepare the seminar and trainings to be given to the entrepreneurs on the loan management.
| Published in | Science Journal of Business and Management (Volume 10, Issue 1) |
| DOI | 10.11648/j.sjbm.20221001.11 |
| Page(s) | 1-6 |
| Creative Commons |
This is an Open Access article, distributed under the terms of the Creative Commons Attribution 4.0 International License (http://creativecommons.org/licenses/by/4.0/), which permits unrestricted use, distribution and reproduction in any medium or format, provided the original work is properly cited. |
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Copyright © The Author(s), 2024. Published by Science Publishing Group |
Loan Amount, Cost of Loan, SME’s Improvement, Standard Multiple Regression
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APA Style
Ibrahim Awami Khamis, Abdalla Ussi Hamad. (2022). Impact of Loan Provided by BRAC Microfinance on SME’s Improvement in Zanzibar. Science Journal of Business and Management, 10(1), 1-6. https://doi.org/10.11648/j.sjbm.20221001.11
ACS Style
Ibrahim Awami Khamis; Abdalla Ussi Hamad. Impact of Loan Provided by BRAC Microfinance on SME’s Improvement in Zanzibar. Sci. J. Bus. Manag. 2022, 10(1), 1-6. doi: 10.11648/j.sjbm.20221001.11
AMA Style
Ibrahim Awami Khamis, Abdalla Ussi Hamad. Impact of Loan Provided by BRAC Microfinance on SME’s Improvement in Zanzibar. Sci J Bus Manag. 2022;10(1):1-6. doi: 10.11648/j.sjbm.20221001.11
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Download@article{10.11648/j.sjbm.20221001.11,
author = {Ibrahim Awami Khamis and Abdalla Ussi Hamad},
title = {Impact of Loan Provided by BRAC Microfinance on SME’s Improvement in Zanzibar},
journal = {Science Journal of Business and Management},
volume = {10},
number = {1},
pages = {1-6},
doi = {10.11648/j.sjbm.20221001.11},
url = {https://doi.org/10.11648/j.sjbm.20221001.11},
eprint = {https://article.sciencepublishinggroup.com/pdf/10.11648.j.sjbm.20221001.11},
abstract = {The main concern of this paper is to examine the impact of loan on the improvement of Small medium enterprises (SMEs) in Zanzibar. The study concentrated on amount of loan provided by BRAC and cost of charged by BRAC to SME’s in Zanzibar. The study conducted in West “A” District-Unguja. The study has mainly employed quantitative research approach with appropriate method of analysis for this study. The sample size for this study consists of 112 SMEs members supported and registered by BRAC, and survey questionnaire was used as data collection instrument. To achieve a credible result for this study, a standard multiple regression was used to analyze and interprets the collected data from relevant respondents. The results revealed that two predictors (loan amount and cost of loan) had a significant effect or impact on the outcome variable (SME’s improvement). In other words, the results of predictor variables show that; loan (β = 0.076, t = 1.977, p < 0.05), cost of loan (β = -0.900, t = -23.322, p < 0.05). The study concluded that the amount of loan received by loan beneficiaries are no affordable and not sufficient to meet the expectations of loan beneficiaries. Also, unfavorable loan fees payment slows down the SMEs operation. Finally, the study recommended that micro finance institutions should prepare the seminar and trainings to be given to the entrepreneurs on the loan management.},
year = {2022}
}
TY - JOUR T1 - Impact of Loan Provided by BRAC Microfinance on SME’s Improvement in Zanzibar AU - Ibrahim Awami Khamis AU - Abdalla Ussi Hamad Y1 - 2022/01/12 PY - 2022 N1 - https://doi.org/10.11648/j.sjbm.20221001.11 DO - 10.11648/j.sjbm.20221001.11 T2 - Science Journal of Business and Management JF - Science Journal of Business and Management JO - Science Journal of Business and Management SP - 1 EP - 6 PB - Science Publishing Group SN - 2331-0634 UR - https://doi.org/10.11648/j.sjbm.20221001.11 AB - The main concern of this paper is to examine the impact of loan on the improvement of Small medium enterprises (SMEs) in Zanzibar. The study concentrated on amount of loan provided by BRAC and cost of charged by BRAC to SME’s in Zanzibar. The study conducted in West “A” District-Unguja. The study has mainly employed quantitative research approach with appropriate method of analysis for this study. The sample size for this study consists of 112 SMEs members supported and registered by BRAC, and survey questionnaire was used as data collection instrument. To achieve a credible result for this study, a standard multiple regression was used to analyze and interprets the collected data from relevant respondents. The results revealed that two predictors (loan amount and cost of loan) had a significant effect or impact on the outcome variable (SME’s improvement). In other words, the results of predictor variables show that; loan (β = 0.076, t = 1.977, p < 0.05), cost of loan (β = -0.900, t = -23.322, p < 0.05). The study concluded that the amount of loan received by loan beneficiaries are no affordable and not sufficient to meet the expectations of loan beneficiaries. Also, unfavorable loan fees payment slows down the SMEs operation. Finally, the study recommended that micro finance institutions should prepare the seminar and trainings to be given to the entrepreneurs on the loan management. VL - 10 IS - 1 ER -
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