The effect of village banks on rural development: "a case study of midia sub-county, koboko district

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Kampala International University, College of Economics and Management
This research investigated the effect of village banks on rural development from 2006 to the year 2010. The specific objectives of the research were to determine the role of village banks in development of clients in Midia, discover the social and economic achievements of the clients of the village banks and identify some of the challenges facing the village banks in developing clients' socio-economic life in Midia Sub-County. In the literature review, different concepts and opinions and ideas of various experts were used to support the study and concepts linked and analyzed to bring an understanding of the study. In the research methodology, the study employed a case study design where both qualitative and quantitative approaches were employed and study population consisted of management and employees of the banks, clients of the banks, relatives of some of the clients and local government officials in the sub-county of the study. Seventy respondents were sampled through stratified technique. Both questionnaire and interview methods were used to collect data and the researcher followed all the research procedures on ground besides respecting all the ethical and logistical considerations of research. The findings of the study reveal that the effect of village banks in the Sub County is wholesome and holistic. This means that village banks in the area have empowered people not only in business but also in health, nutritional, educational among others through offering a variety of services such as microfinance loans, development loans, business loans, education loans among others and some saving products. Based on the challenges facing village banks in the area, the study recommends that the banks should continue providing such developmental and client friendly products and argues different stakeholders to support such banks for better development
Research report submitted to the College of Economics and Management in partial fulfillment of the requirements for the Award of Degree in Business Administration of Kampala International University
village banks, Rural development, Koboko district