WOMEN ENTREPRENEURSHIP AND ACCESS TO BANK LOANS IN TANZANIA: A DOUBLE HURDLE MODEL APPROACH
Vol. Volume 22, Number 3 September/2017
Aurora A.C. Teixeira, Halima Abdi Sharifu
The present study assesses the perceptions of women entrepreneurs in Tanzania regarding the access to bank loans and the difficulties experienced in the process of financing their business. Focusing on small-scale businesses, face-to-face interviews were conducted with 75 women entrepreneurs from the Dar es Salaam area. Resorting to double hurdle estimation models, we conclude that: 1) women who perceive higher discrimination and/or inequality in accessing to bank loans, but who also recognize that women entrepreneurs often lack relevant business skills, tend to apply more often to bank loans; 2) women running larger business, operating in tailoring industry, face fewer difficulties; 3) although highly educated women entrepreneurs apply less to bank loans, formal education acts as a shield to the difficulties faced by women when applying to bank loans; 4) more autonomous and money seeking women entrepreneurs are less likely to report difficulties during the process of bank loan applications.
Women Entrepreneurship; Bank loans; Gender inequality; Gender discrimination; Tanzania.