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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Kampala International University, College of Economics and Management
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 I00 respondents was used for the survey. Five identified adult represented the people in the town and this was done through a probability sampling whereby the entire FINCA Microfinance clients. These focus group discussions were ranged between 6- 10 people. he fin dings 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 cred it 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.
A research report submitted to the College of Economics and Management Sciences as partial fulfilment of the Award of a Bachelor’s Degree in Business Administration of Kampala International University
Micro credit schemes, Development of small scale businesses, Koboko Town Council