Micro finance institutions and poverty reduction among unemployed women: a case study of Pride Micro Finance, Mbarara
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Date
2011-05
Authors
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Publisher
Kampala International University, School of Business and Management
Abstract
This study set out to examine the contributions of Microfinance Institutions to poverty
reduction among the self employed women in Mbarara Town council, Mbarara district. It
was guided by three specific objectives which included examine the; I) benefits to women
resulting from their capital access to credit; II) contribution of MFis towards provision of
entrepreneurial skills and promotion of self employment to women; and III) how women in
Mbarara overcome problems associated with acquisition of MFI loans. Using a case study
and a descriptive correlational and cross-sectional survey design and following a
quantitative approach, data was collected through questionnaires and interviews from 40
respondents including food vendors, shopkeepers/owners, tie and die makers and
executives Foundation for Intemational Communities Assistance (FINCA), sampled using
simple random and purposive techniques. Data analysis was done using SPSS by
computing simple and complex frequency tables or cross-tabulations. The findings showed
that; i) 16 respondents (42%) used small scale credits to build residential houses followed
by 24% who used the loan for paying school fees, 11% increased their business capital,
while 8% claimed no benefit; ii) women status has also improved; iii) 32 women (69%)
have joined entrepreneurial skills training in 2011, however they need more skills and
knowledge on marketing, project planning and successful management of business; iv)
food vendors (36%) are the biggest business group who received training from MFis and
on the whole, 22 respondents received training including food vendors, tailors (27%), tie
and dye makers (23%) and shop owners (14%). Most respondents who did not get training
are those in the tie and dye business (50%) followed by shop owners (30%). The
researchers concluded that the contribution of small scale credits to poverty reduction
among women in Mbarara is commendable and reasonable. Various benefits have been
achieved such as buying land plots, improving shelters by building decent and modem
houses, paying school fees for their children in Mbarara primary and secondary schools,
and opening more branches for their business projects. The researcher recommended that
to some extent loans are weighing heavily on beneficiaries, thus credit terms and
conditions should be reviewed in order to accelerate poverty reduction and help to uplift
small and medium enterprises (SMEs). Microfinance Institutions (MFis) should strengthen
their education programmes to women who are their customers so that their business can
be sustainable. The govemment should empower women with entrepreneurial knowledge
and skills so that they can be aware of loans/credits issues before approaching lending
agencies. The govemment should allocate more money for giving loans to women with fair
lending conditions beneficial to women.
Description
A research report submitted to the School of Business and Management in partial fulfillment for the requirements for the Award of a Bachelor's Degree in Business Administration of Kampala International University
Keywords
Micro finance, Institutions