The Evaluation of the Factors Influence the Access to Debt Financing by Tanzanian SMEs

Abstract

The primary objective of this study was to discover the factors that impact access to debt financing by Small and Medium-sized Enterprises (SMEs). This quantitative study was conducted in 2012, based on a survey of 164 SMEs. Study results were then compared with factual indicator data subjected to multiple regression and correlation analysis. Findings reveal that the factors influencing access to debt financing by SMEs in Tanzania include: firms management’s education, experiences of industry and business operations, firm’s location, industry, size, age, incorporation, and availability of collateral. Owners and managers of SMEs are advised to improve their management skills, and liaise with financial institutions to meet their financing requirements in a feasible time frame.