Microfinance institution services and standard of living in Garowe, Puntland, Somalia
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Date
2017-01
Authors
Journal Title
Journal ISSN
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Publisher
Kampala International University. College of Economics and Management
Abstract
The study examined the relationship between microfinance institution services and
standard of living in Garowe district, Somalia. The study was guided by three specific
objectives that included (i) examining the relationship between credit services and
standard of living in Garowe district; (ii) examining the relationship between saving
services and standard of living in Garowe district and (iii) evaluate the relationship
between insurance services and standard of living in Garowe district Somalia. This study
used the descriptive survey design to establish the relationship between microfinance
institution services and standard of living in Garowe district, Somalia, the study used a
total population of 205 and a sample size of 135 respondents, and the questionnaire
was used as the research instrument. Descriptive statistics used in this study included
frequencies, means and PLCC on correlation of variables. Data analysis using rn~~ans
showed that microfinance institution services were rated satisfactory (overall
mean=2.88) and standard of living in Garowe district, Somalia was found to be
satisfactory (mean=2.76). The following were the findings of the study; the findings
indicated a positive significant relationship between credit services and standard of
living in Garowe district, Somalia, the findings connoted that savings services are
significantly correlated with the standard of living in Garowe district; there was a
significant relationship between insurance services and standard of living in Garowe
district. From the findings, the following recommendations were made; the microfinance
institutions in Garowe district Somalia should make sure that the collateral security
requirements are always compatible with the credit required by the client, the
microfinance institutions in Garowe district Somalia should always allow citizens borrow
a specific amount of money and pay back through regular monthly payments with no
collateral required, the microfinance institutions in Garowe district Somalia should
provide bonuses for prompt credit payment among clients, microfinance institutions in
Garowe district Somalia should provide risk transfer services, hence improving on the
insurance services provided, and lastly microfinance institutions should always support
people in receiving health insurance.
Description
A thesis submitted to the college of economics and management in partial fulfillment of the requirement of the award for master degree of arts in economic planning and policy Kampala International University
Keywords
Microfinance, Garowe, Puntland, Somalia