Digital Finance and Financial Inclusion among Micro and Small Enterprises: Evidence from Geita District, Tanzania

Abstract

This study examined perceptions, accessibility, affordability, usage, and overall financial inclusion of digital financial services among micro and small enterprises (MSEs) in Geita District, Tanzania. A quantitative approach was employed, with data collected from 106 respondents via a structured survey using a five-point Likert scale. Descriptive analysis was used to analyse the data. The findings indicate that the majority of respondents held positive perceptions of digital financial services, considering them useful, easy to use, and effective in supporting business operations.

Respondents generally reported that digital financial services were accessible, affordable, and regularly used for business transactions, savings, and borrowing. Many MSEs are also engaged with multiple financial products, indicating a relatively high level of financial inclusion. Despite these positive outcomes, challenges such as limited access, high costs, low digital literacy, and infrastructure constraints were reported, which hindered broader adoption. The study concludes that while digital financial services have enhanced financial inclusion among MSEs in Geita District, their effective utilisation is constrained by both human and institutional factors. It recommends targeted financial literacy and digital skills programmes, expansion of service points, affordable pricing models, promotion of diverse financial products, and supportive policies from stakeholders. Implementing these measures is essential for strengthening adoption, improving financial inclusion, and supporting the growth and sustainability of micro and small enterprises.