The role of informal microfinance institutions in saving

• Provide modern facilities and infrastructures for legal administration in order to
enhance proceedings and judicial process in general.
4.1.6: Business Regulation.
It is a common knowledge that entrepreneurs are governing conduct of businesses as well as
the predictability of their implementation and frequency of changes. Few new businesses, the
regulations for setting up an enterprise or new operations are important. It has been reported
severally business regulations in Tanzania are complex, unpredictable and that low paid
officials lead to corrupt practices.
To evaluate the business regulations as it affects SACCOs, respondents were asked to indicate
whether the business regulations are complex or not. Also, the structure of fees imposed on
them at local level as well as its nature in terms of multiplicity was evaluated.
The percentage of respondents who believed that business regulations are too complex was
47.5% compared to those with contrary opinion 8.1%. However, 43.7% feels that it is
complex. Also, respondents were of the view that the fee structure is either fairly complex
30.3% or too complex (54.9%) depending on the locality. The fees charged by local
administration are multiple (67.4%) and unpredictable (25.2%) because of revenue
generation activities of the Two- tiers Government (local and central governments). More
than half of the respondents (63.7%) agreed with the view that low-paid officials lead to
corruption, while 26.6% disagreed.
4.1.7: Finance Support Services.
Finance access has been realized as a major constraint for all SACCOs which can seriously affect
the ability of a small industry to survive, expand markets, and improve manpower or
productivity. The source of finance activities that observed for SACCOs is offered as loans.
However, lack of collateral, fear of excessive debt burdens and the low profitability for banks
in lending to SACCOs.
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