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Student's Book Form Five
A grant has the benefit of being a debt- Exercise 3.3
free financial support as it does not need
to be repaid. It increases the credibility 1. Your friend Miss Johari wants to start
and attractiveness of an enterprise to other a catering business. Unfortunately,
investors or other stakeholders. A grant she has limited capital to start that
also enhances the growth of the medium- business and subsequent operations.
FOR ONLINE READING ONLY
sized enterprise. Lastly, it is associated Which advise will you give her on
with money which promotes a positive the following:
change in the society. However, a grant (a) Identifying different sources of
has some challenges including its difficulty finance that she can apply.
to acquire as it involves strict application,
screening, and spending conditions. In (b) Describe the advantages and
addition, bureaucracy usually exists in disadvantages of each source
grant application which makes the process identified in part (a) above.
complex. 2. Despite the existence of different
sources of financing for medium-
Activity 3.3 sized enterprises, still secured loans
are considered as the most common
1. With the help of ICT identify way used for financing them. Explain
and visit some of the business why secured loans are the most
enterprises that have received
financial support from either preferred?
the government or private 3. Mr. Baruani is an entrepreneur
organisations in Tanzania. Then, whose business activity is retailing
ask the owners the following: different types of cosmetics in
(a) How did they secure the Dodoma Region. Unfortunately, all
financial support? of his properties including products
(b) How are businesses benefiting were burnt in a fire accident. He
from such support? approached one of the commercial
2. Use reliable sources to describe banks in Tanzania seeking for a
other sources of financing for secured loan but the bank did not
medium-sized businesses apart grant his request. What could be the
from those explained in this reasons for the bank refusing to lend
chapter. money for his business?
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