An analysis of the challenges faced by women entrepreneurs in accessing loans from micro finance institutions in Harare: A case of women entrepreneurs operating in the Glenview Area 8 Complex

Abstract

The study sought to analyse the challenges faced by women entrepreneurs in accessing loans from micro finance institutions in Harare. The main objective was to identify and analyse te challenges faced by women entrepreneurs in accessing loans. The study used a descriptive research design in form of a survey. The research adopted the deductive approach and made use of a close ended questionnaire that was developed from the objectives of the study. The target population was 256 entrepreneurs, and a sample of 152 was used. Regression analysis was used to test the cause and effect relationship between access to loans and the interest rates, the level of education, the number of lending institutions available and the collateral security requirements. Findings from the study indicated that the level of education, interest rate, collateral requirements have an impact on access of loans to women entrepreneurs in Glenview area 8. The highest predictor was the number of lending institutions available in the area followed by collateral requirements. The level of education had the least effect followed by the interest rate caps. The researcher recommends policy consistencies for policies like the monetary and fiscal policies that ensure a stable operating environment. A stable currency is specifically important to ensure that the loan book value of MFI practitioners is not distorted by inflation, which in turn affects the administrative costs and interest rates hence reducing the number of women entrepreneurs who qualify to apply for loans. The researcher also recommended the removal of interest rate caps or consideration of inflation adjusted interest rate caps to ensure that women are financially included through cost containment agenda and sustainable operations for practitioners. The researcher chose Glenview area 8 complex in Harare due to its proximity and adequacy of the sampling frame which could be inferred to the rest of the population. Due to time constraints the researcher could not engage all the MFIs in Harare. The researcher recommends a further research on challenges which affect not entrepreneurs in accessing loans to be carried out on a broader scope for example in Harare. The same research can be carried out in the region or neighbour countries in SADC