Another barrier for entrepreneurs to access finance is the mandatory requirement of security cover for loans. The problem is not the requirement itself. Security for loans is an important requirement because funds that are used to provide loans are owned by the public. However, financial institutions need to be flexible on the type of security with consideration to type of customer. Depending on loan amount, FIs should consider accepting home and business assets, business owners’ debentures, un-surveyed land and third party assets as security. E+Co and some commercial banks e.g. Access Bank Tanzania are already accepting such securities. It is recommended that FIs and stakeholder of the financial sector, including the government and central seriously consider instituting measured to regulate Interest rates charged by FIs in order to ensure that they are not excessive. This will result in a win-win situation as both sides, the FIs and entrepreneurs will benefit from the increased access to financing. FIs need to establish special windows/departments with people who understand this customer segment and are committed to turn things around. This will enable more entrepreneurs accessing finance hence being able to start-up and grow. 5.5 Recommendation for Further Study This study has assessed the impact of access to finance on the development of renewable energy technology, focusing on the supply side that is companies that are providing renewable energy services. There is a need to conduct further studies looking at the demand side that is whether all the financing interventions by
Another barrier for entrepreneurs to access finance is the mandatory requirement of security cover for loans. The problem is not the requirement itself. Security for loans is an important requirement because funds that are used to provide loans are owned by the public. However, financial institutions need to be flexible on the type of security with consideration to type of customer. Depending on loan amount, FIs should consider accepting home and business assets, business owners’ debentures, un-surveyed land and third party assets as security. E+Co and some commercial banks e.g. Access Bank Tanzania are already accepting such securities. It is recommended that FIs and stakeholder of the financial sector, including the government and central seriously consider instituting measured to regulate Interest rates charged by FIs in order to ensure that they are not excessive. This will result in a win-win situation as both sides, the FIs and entrepreneurs will benefit from the increased access to financing. FIs need to establish special windows/departments with people who understand this customer segment and are committed to turn things around. This will enable more entrepreneurs accessing finance hence being able to start-up and grow. 5.5 Recommendation for Further Study This study has assessed the impact of access to finance on the development of renewable energy technology, focusing on the supply side that is companies that are providing renewable energy services. There is a need to conduct further studies looking at the demand side that is whether all the financing interventions by