SMALL GRANT FOR A MASTERS RESEARCH PROJECT: LESSONS FROM EQUITY FINANCE EXPERIENCES OF TANZANIAN SMES

The Institute of Management and Entrepreneurship Development (IMED) is piloting an equity finance investment scheme and would like to learn from experiences, successes and challenges of investors and investees under this mode.  IMED will support one master’s student to undertake a study in this area in 2014.

The issue

External equity finance in Tanzanian SMEs is known to be a rare phenomena.  Yet, it offers an opportunity for SMEs to raise capital, share risks, complement knowledge and skills, etc.  Many reasons have been put forth to explain why it is difficult for SMEs to access and use equity finance from both local and foreign investors. However, there are a few cases of successful equity investments in SMEs, both from local and foreign investors.  This study will examine the experience of SMEs that have accessed equity investments and investors who have placed equity in SMEs   to draw lessons for scaling up this form of finance. The study will entail case studies of at least 10 SMEs that have accessed equity investments as a basis for drawing lessons and scaling up this approach.  The specific methods will include literature review and interviews with investors and investees and where possible their family.

Eligibility

Masters students who have completed their course work. Experience in the financial sector will be an added advantage. The candidate must be prepared to focus on the project and complete it no later than May 2014.

Application process

Interested candidates should submit a 2 page concept to olomi@imedtz.org with:

(i)                  Study  background, research problem, objectives, and methodology sections (Maximum 2 pages)

(ii)                Personal profile showing educational background, college, institutional affiliation (if any) experience (if any), current status (e.g. MBA candidate who has completed course work) and motivation for undertaking the study (Maximum ½ page).

Support Offered

The selected concept/candidate will get a Tshs 1,000,000/- grant to cover research expenses (travel, incidentals, stationery, etc).  Half of these will be released upon completion of a satisfactory research proposal and the remaining upon completion of the study. IMED will also provide an experienced supervisor or a mentor (informal co-supervisor), depending on the policy of the institution where the successful candidate is registered.