Strategy development of microfinance institutions and poverty reduction in Hargeisa-Somaliland

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Date
2011-02
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Publisher
Kampala International University, College of Economics and Management
Abstract
The study investigated the relationship between strategy development of microfinance institutions and poverty reduction in Hargeisa-Somaliland. The study sought to establish the kind of relationship that exist between the strategy development of microfinance institutions and poverty reduction and provide recommendations based on the research outcomes. This was in view of the fact that accessibility of development and financial services by the microfinance institutions is the cornerstone for strategy development in Somaliland. The purpose of this study was to establish the relationship between strategy development of microfinance institutions and poverty reduction in Hargeisa-Somaliland. The study was guided by three research objectives. The first one was to evaluate the strategy development program of Microfinance institutions in Hargeisa-Somaliland. The second one was to find out the extent of poverty reduction in Hargeisa-Somaliland. The third one was to determine if there is a significant relationship between strategy development program of Microfinance institutions and poverty reduction in Hargeisa-Somaliland. The research design based on descriptive correlation and quantitative design was used on existing literature. Data was collected from both primary and secondary sources majorly using questionnaires distributed to a sample size of 137 respondents out of population of 210 respondents. Cross tabulation (frequencies and percentages), mean and correlation analysis using Pearsons’ coefficient values was used to analyze data. The study established that there is a significant relationship between strategy development program of microfinance institutions and poverty reduction in Hargeisa-Somaliland; hence, the null hypothesis was rejected. Basing on these findings, the following recommendations were worthwhile: Guidelines to microfinance institutions need to be flexible to ensure continuous improvement in Somaliland, hence, poverty reduction and through strategy development and capacity building of MFIs, it will increase the development of community capacities building, hence help poverty reduction.
Description
A thesis presented to the school of postgraduate studies and research Kampala International University Kampala, Uganda in partial fulfillment of the requirements for the Degree Master of Business Administration
Keywords
Microfinance institutions, poverty reduction, Hargeisa-Somaliland
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