Contribution of Microfinance Training on Profitability of Small and Medium Enterprises in Dodoma City.

Abstract

This study examined the contribution of microfinance training on the profitability of small and Medium Enterprises in Dodoma City. Specifically, the study focused on how types of training, need assessment and trainer competence influence the profitability of Small and Medium Enterprises. The study adopted a cross section research design and a sample of 96 respondents were selected from small and medium enterprises (SMEs) and Microfinance Institutions (MFIs) found in Dodoma city using stratified random sampling technique, simple random sampling technique and purposive sampling technique. Data collection methods include questionnaire and Focus group discussion. Data were analyzed using descriptive statistics and multiple linear regression analysis. The study found that, microfinance training in terms of types of training, need assessment and trainer competence services was positive and significant related to net profit margin of SMEs. The study concludes that microfinance training services were most important services that influence profitability of SMEs in Dodoma City. The study recommends that, to improve microfinance training services, customization of training, practical workshops, peer learning opportunities, digital literacy education, and sustained engagement through ongoing training and mentorship are essential for equipping SMEs with the skills and knowledge needed to enhance their business profitability.