Contributions of microfinance institutions on business Performance :

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Kampala International University, College of Economics and Management
The topic of the study was Contributions of Microfinance institutions on Business Performance in Nakawa Division-Kampala Uganda: The study investigated performance of business as a major problem following the high collapse of business due to non-performing loans from financial institutions. The objectives of the study included: determination of the role played by microfinance institutions in Nakawa division; determination of the level of business performance in Nakawa Division, and to establish the effects of microfinance institutions on business performance in Nakawa Division. This research used the mixed approach by applying both quantitative, and qualitative research designs to enable the researcher and other future scholars have a deeper understanding of the of the problem and create more innovative solutions for the performance of business. Specifically, the designs consisted of descriptive co-relational design and cross-sectional design. The findings of the research study were that in Nakawa division, the age bracket for people with businesses ranges between 41-50 years representing the highest percent of 48 out of the total sample population with majority percent of being females representing 57 percent, however education level indicated a shrinking level with secondary education being the highest level attained by respondents representing 37 percent. To make a comprehensive examination, it was also important to find out the distribution of respondents of number of years in doing business and the study found out most of the businesses lasted between 3-5 years representing 46 percent. The findings on the level of growth of microfinance institutions in Nakawa Division indicated an overall mean of 2.29 implying that respondents were satisfied with the level of growth of these microfinance institutions indicators, in addition on the level of business performance, the overall mean was also satisfactory at 2.45 as the study was concerned. And lastly the effects of microfinance institutions on business performance revealed 70 percent according respondents as far as the sufficiency of the loans was and making them purchase the required equipment at 53 percent hence making a sales volume to stand at high rate of 55 percent according to the study. The researcher recommended to microfinance institutions to always not only provide loans but also supplement it with other services in order to enhance business performance in Nakawa Division.
A research report submitted to the college of economics and management in partial fulfillment the requirements for the award of Bachelors’ Degree of Arts in Economics of Kampala International University
Microfinance institutions, Business performance, Nakawa Division