The effects of micro credit schemes on the development of small scale businesses in Koboko Town Council: a case study of finca
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Date
2016-10
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Kampala International University, College of Economics and Management
Abstract
The leaders of Koboko town council have a role to play in as far as the development is concerned
that is; engage people in developmental activities; ensure proper planning, promotion of full
utilization of the available micro-credit schemes, provision of education facilities. encourage
community members to adopt a culture of saving, promote creation of small scale business
among others. Looking at modernization and globalization, there is a significance strain people's
ability to pa/these roles. However, the increasing poverty levels and climatic changes in Uganda
have hindered several development strategies since the majority of Ugandan population depend
on agriculture for their survival (subsistence and commercial).
The study was purposed to access the impact of micro cred it schemes and development of small
scale businesses in Koboko town council.
The research design was essentially explanatory and descriptive. It gave an explanation on what
compels families to borrow and the impact on development of Koboko town council. It has used
both qualitative and quantitative methods. Qualitatively, the study sought to establish the impact
of credit schemes on the development of Koboko town council. It also established what has been
perceived as the role of credit schemes in development in Koboko town council. This has been
done through interviews and focus group discussions.
A sample of I 00 respondents was used for the survey. Five identified adult represented the
people in the town and th is was done through a probability sampling whereby the entire FINCA
M icroli nance clients. These focus group discussions were ranged between 6-10 people.
The findings show that micro credit schemes have great significance in fostering development in
Koboko town council. However, there is much reliance on informal credit schemes and
individual money lenders who charge exorbitant interests.
The study recommended that the researchers should pay more attention in future to micro credit
institutions which have no affiliation to any employer company, in an attempt to analyze the
impact as well as challenges. There is need for a comprehensive evaluation of informal cred its schemes, such as the American dollar system'' and other individual money lenders and their bearing on the development.
Description
A research report submitted to the College Of Economics and Management Sciences as partial fulfillment of the Award Of A Bachelor’s Degree in Business Administration of Kampala International University
Keywords
Credit, Micro, Development, small scale, Businesses