Effects of Microfinance Financial Services on Women Owned Business Performance in Iringa, Tanzania

Abstract

 This study focused on the effects of microfinance financial services on the performance of women
owned businesses in Iringa Municipality, Tanzania. Quantitative research approach was employed to collect
and test statistical data. Explanatory research design was adopted, using 247 respondents which were
selected using systematic sampling approaches from the study population of 647 women business owners.
Data was collected using a survey questionnaire and analysis was conducted using the multiple regression
analysis. Findings revealed that microfinance financial services have significant effects on women owned
business performance. Furthermore, micro credit and micro saving have significant effects on women
owned business performance. The study recommends that policy makers at local governmental authorities
need to develop microfinance policies that capture financial resources, such as micro credit and micro saving,
which fit well to women context through mobilizing them to join social economic groups. The study further
recommends that for women owned businesses to perform well, women should join microfinance
institutions to obtain financial resources, such as micro credit and micro saving.