Effect of Agency Banking Services Provision on Performance of Small Business Entrepreneurs at Chamwino District

Abstract

Purpose: This study endeavours to examine effects of agency banking services provision in rural area on performance of small business entrepreneurs at Chamwino District, Dodoma Region. Urban settings have been the main areas of concentration, leaving out the dynamics and challenges rural entrepreneurs encounter while using agency banking services to expand their businesses, hence the essence of undertaking this study. Design/Methodology/Approach: Cross sectional research design was used, and a sample of 108 respondents were involved in this study. Data were analysed using descriptive and multiple linear regression analysis. Findings: The study findings show that, variables of accessibility, privacy and reliability of agency banking services have positive and statistically significant impacts on the performance of small business entrepreneurs in rural areas. Implications/Originality/Value: The study recommends banking industry in Tanzania to establish standardized fee structures and transaction charges for agency banking services. Also ensure transparency and prevent excessive costs to users of agency banking services. By so doing, it can ease provision and expansion of various online banking services to majority of the underserved communities in rural areas of Tanzania