ALTERNATIVE STRATEGIES ON IMPROVING SMALL AND MEDIUM ENTERPRISES ACCESS TO SEED CAPITAL. A CASE OF DODOMA MUNICIPAL, TANZANIA

A crucial element in the development of the SME sector is access to finance, particularly to bank financing, given the relative importance of the banking sector in serving this segment. Small Medium Enterprises plays important and crucial roles in the economy development of any country. The main purpose of the study is to evaluate the Alternative Strategies on Improving Small and Medium Enterprises (SMEs) S' Access to Seed Capital. This study is descriptive and combines both primary and secondary data methods of data collection. The method of convenience sampling was employed in arriving at the 80 SMEs, which the researchers believe possesses the experience relevant for this study and who have sufficient time and were willing to participate. Data are analyzed and summarized by using both SPSS and excel. Key determinants for seed capital acquisition which are: fair and low interest rates; philanthropy; in-excessive demand for collateral security; less cumbersome procedures and realistic repayment schedule. The study further revealed that high interest rates; lack of finances and unfavorable tax charges as major constraints to the growth of SMEs. In a nutshell, the major challenge could be interpreted to mean lack of seed capital.