Bewertung des Arabian Journal of Business and Management

The Influence of Demographic Factors on the Awareness Level of Microfinance Institutions Facilities in Zanzibar, Tanzania

Abstract

Hamad Mohammed Shkeily* and Naziruddin Abdullah

The purpose of this study is to examine the influence of demographic factors on the awareness level of microfinance institutions’ facilities in Zanzibar, Tanzania. Random sampling technique was used and a total of 147 responses were collected electronically using Google form among different groups of peoples in Zanzibar. Using SPSS software, the descriptive analysis was conducted to examine general characteristics of the variables used and correlation analysis was used to test significant relationship between demographic factors and MFIs facilities. The results revealed that, there are significant negative relationships between demographics against MFIs mobile and general services with p ≤ 0.05 and p ≤ 0.01 respectively. Therefore, whenever more MFIs services are added in a given category, the influence of demographic factors on awareness level is decreasing. However, the strength of the correlation in both cases i.e. correlation between demographic against general services and correlation between demographic against mobile services are not strong. Therefore, it is recommended for MFIs to conduct public awareness program for the available financial services. Perhaps, a well-organised awareness campaign in both rural and urban areas will make people aware the availability of financial services and other opportunities rendered by MFIs so as to attract more customers. It is also recommended for the government to revisit the legal framework and operation costs of the MFIs.