Suitability of the Source of Finance for Small Scale Enterprises: A Case of Dar es Salaam Region

This study aimed to describe the emerging dimensions in the sources of finance for small- scale enterprises (SSE) in Tanzania. Specific Objectives of the study were to determine sustainability and suitability of the sources of finance, explore the sufficiency of financial institutions in promoting SSEs in Tanzania, and explore problems facing SSEs in raising finance and thereby inhibiting their sustainability and growth. The data were collected through documentary sources, questionnaires, and observation and it was analyzed using SPSS. The findings revealed that the emerging sources of finance in Tanzania are not sustainable and suitable to SSEs. The findings identified factors that lead to un-sustainability and unsuitability of these sources of finance as being attributed to the difficult conditions imposed by the sources of finance, high interest rates, and small loan amount provided to SSEs, short grace period and short loan repayment time. The findings also revealed the sufficiency of financial institutions in promoting SSE in Tanzania. Furthermore, the findings revealed problems facing SSEs in raising finance and thereby inhibiting sustainability and growth. Policy makers are urged to take effective measures to formulate a policy which will regulate the business environment so that entrepreneur will be able to obtain higher returns, and putting some environment of lowering interest rates and softening conditions of accessing finance from various sources of finance thereby boosting Tanzanian economy