Factors Influencing Small Enterprises’ Access to Financial Resources Mainstream: A Case of Sunflower Oil Processors in Singida Municipal

Abstract

Small Enterprises (SEs) play an important role in the social economic development of any country. SEs are more than large firms considerably, employs large numbers of people and are generally entrepreneurial in nature, helping to shape innovation. The study aimed to assess factors influencing access to funds from financial mainstreams. Specifically, to determine the influence of capital conditions to acquire loans from financial institutions and determine the influence of Small enterprises' credibility to acquire a loan from financial institutions. The study was guided by Business Financing theory. The study applied both quantitative and qualitative approaches. A sample of 56 respondents from 28 Small enterprise processing sunflower oil in Singida Municipal was used. Questionnaires and interviews were applied to collect data which later were analyzed using descriptive statistics, inferential statistics, and content analysis. The study found that capital conditions and SEs' credibility significantly influence the process of accessing funds from financial mainstreams. The study recommends to the government develop some friendly policies that will help more business to access funds from financial institutions. But also banks should soften some conditions that will enable more businesses to go to banks to ask for loans.