This paper examines whether financial-sector policy changes introduced in Tanzania during the last decade have improved bank finance availability to small enterprises. Study findings reveal that, despite these changes, the level of bank finance to small enterprises is still insignificant. Results likewise indicate that, apart from bringing about limited competition in the provision of financial services, these changes have resulted in the concentration of most financial institutions in urban areas and in only a few regions/provinces. This also negatively affects bank finance availability to small enterprises. These findings have several policy implications for the growth of small enterprises in the country. Key among them is the need for a new approach to policy that will improve bank finance availability to small enterprises.
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