An Examination of the Limitations Faced by Women-Owned SMEs in Accessing the Zim-AIED Revolving Credit Facility “AgriTrade” (2011 – 2013)

Tamangani, Fidelis (2014) An Examination of the Limitations Faced by Women-Owned SMEs in Accessing the Zim-AIED Revolving Credit Facility “AgriTrade” (2011 – 2013). Masters thesis, University of Zimbabwe.

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Abstract

The purpose of this study was to examine the main limitations faced by womenowned SMEs in the agricultural sector in accessing the Zim-AIED revolving credit facility (AgriTrade). The paper sought to identify the main limiting factors at borrower level, lender level and the Fund level that resulted in fewer women than men borrowing under the AgriTrade Fund. It also examined financing models that exist in Zimbabwe and globally which are promoting women access to credit. The study was carried out in the ten provinces of Zimbabwe by collecting data from women-owned SMEs that accessed loans under the AgriTrade Fund. The study also identified loan managers from the three AgriTrade partner banks namely CABS, Trust Bank and MicroKing, who administered the Fund during the period, 01 June 2011 to 30 September 2013. The study used a case study of the AgriTrade Fundanddistributed questionnaires to a sample of 100 women-owned SMEs and ten loan managers from the three AgriTrade partner banks broken down as: two from CABS, two from Trust Bank and six from MicroKing. All the ten questionnaires from the loan managers were returned while a total of 65 questionnaires from women-owned SMEs were also returned, giving a response rate of 65 per cent. The main findings of the study showed that the main limitation for women’s’ access to the AgriTrade Fund were access to collateral, access to training, access to markets, ability to generatebusiness proposals andfinancial information and the lack of business records. The age of applicants, marital status and level of education attained,influenced the decisionsby loan officers and loan managers in loan approval. This study recommends that women-owned SMEs should get assistance from their spouses, families and friends on access to collateral, the preparation of business proposals, the preparation of financial information and the keeping of business records which are important for accessing business loans. Women should attend business training workshops, seminars and field days to gain experience inestablishing and running their businesses which are a pre-requisite in applying for bank loans. Commercial bankswere recommended to adopt loan assessment methodologies used by microfinance institutions(MFIs) which are suitable forSMEs. Banks which cannot establish stand-alone SME departments were recommended to collaborate with MFIswhich have experience working with SMEs, both in the rural and urban areas. Developmental organizations such as NGOs and private companies were recommended to provide funding, specific for both start-up and existing women projects under the SMEsector.

Item Type:	Thesis (Masters)
Subjects:	H Social Sciences > HF Commerce
Divisions:	Africana
Depositing User:	Geoffrey Obatsa
Date Deposited:	09 Mar 2018 12:59
Last Modified:	09 Mar 2018 12:59
URI:	http://thesisbank.jhia.ac.ke/id/eprint/3421

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