The role of informal microfinance institutions in saving

3.1.4 Methods of Data Collection and Sampling.
Sampling
Both probability and non-probability sampling will be employed in this study. The data
collection process required a preliminary survey in order to construct the sampling frame and
draw a sample. A pilot survey was conducted for this purpose. A population of small- scale
enterprises in agricultural and non-agricultural activities was identified in the study region of
southern highland zone of Tanzania, with the help of the district offices of the Ministry of
Agriculture, Marketing and Cooperatives. This included both credit and non credit users. Since
there is no official register of individual entrepreneurs operating in these markets, it was not
possible to have a listing of the traders. Respondents were therefore randomly selected from
this population in the selected markets using a random chart. Systematic random sampling was
then used to pick subsequent respondents. The entrepreneurs were also used to identify the
available informal sources of credit from which they had benefited. This was necessary in
order to avoid the problem of sample selection bias and also the possibility of informal lenders
not known in the formal system.
A sample size of 250 respondents was initially targeted. However, only 170 respondents were
successfully interviewed, distributed as follows: Morogoro 47 respondents, Mbeya 63
respondents, Dodoma 30 respondents, Iringa 23 respondents and Ruvuma 7 respondents.
3.1.5: Data Collections
Primary data was collected using both self-administered and interview methods. The primary
data was collected using semi-structured and in depth interviews. Semi-structured interviews
were undertaken by taking note of responses to a list of questions on the subject matter. The
following key questions formed part of the questions asked during semi-structured interviews:
• Who are the public and private sector support institutions involved with SACCOs
development in Tanzania?
• Are the support institutions well equipped to deliver the services required by SACCOs?
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