Enabling Factors and User Requirements for Microcredit Services through Mobile Devices - Dar es Salaam Tanzania Context.

Authors

William Clifford Gomera, College of Business Education (CBE), Tanzania and The University of Eastern Finland (UEF), Faculty of Science and Forestry, School of Computing, FinlandFollow
Jarkko Suhonen Dr., University of Eastern Finland (UEF), Faculty of Science and Forestry, School of Computing, FinlandFollow
George Oreku Prof., University of Eastern Finland, Faculty of Science and Forestry, School of Computing, Finland; The Open University of Tanzania (OUT), Tanzania and North West University, Vaal Triangle Campus, South AfricaFollow

Publication Date

1-1-2020

Abstract

Microfinance institutions (MFIs) play a considerable role in providing capital to micro businesses (MBs) through microcredit services. However, the interplay between MFIs and MB owners has been hindered by several factors, such as challenges with information sharing. The current study aims at identifying the specific challenges of microcredit services in Dar es Salaam, Tanzania, and also at determining the enabling factors, preferred features, and general requirements for a mobile technology solution to support the interplay between MFIs and MBs. The participants in the study were 91 MB owners and 22 MFI officers, and the data for the study were collected via a questionnaire. The study confirmed that the interaction, communication, and relationship between MB owners and MFIs is affected by various challenges. It was confirmed that digital technology can be used to address the identified challenges, and that a tailor-made mobile technology solution would be appropriate for supporting the interaction, communication, and relationship between MFIs and MBs.