microfinance institutions and poverty alleviation in Uganda a case study of Mbarara municipality, Mbarara district:
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Date
2019-06
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Kampala International University, College of Economics and Management.
Abstract
The purpose of the study was to establish the relationship been micro finance services and
poverty reduction in Mbarara Municipality. The objectives included to examine the effect of
micro credit on poverty reduction, to determine the effect of micro finance savings on poverty
reduction and establish the effect of micro finance social services on poverty reduction in
Mbarara Municipality Somalia. The study was based on selected micro finance institutions in
Mbarara Municipality Uganda plus some selected respondents from Mbarara Municipality. The
study employed a descriptive research design and majorly quantitative. The descriptive design
was selected in this study because it allows the researcher to gather numerical data. The data
was collected from the employees of the selected banks and customers. The data was collected
through the research questionnaires from 80 respondents. The findings on the first objective
provided that micro credit had a 25.5% effect on the poverty reduction in Mbarara Municipality.
Regarding the effect that micro finance saving services have on poverty reduction, findings
suggested a positive effect. The summarized regression results are clearly indicative of the fact
that proper micro finance help in improving the odds of poverty reduction. On the second
objective, micro finance saving had a 3 1.8% effect on the poverty reduction in Mbarara
Municipality. The R-Squared coefficient denotes a low amount of influence that savings services
have on poverty reduction while the third objective micro finance social services had no influence
on poverty reduction. The study conclude that micro credit services affect the poverty reduction,
the study conclude that micro credit improvement contribute to poverty reduction in Mbarara Municipality. The study further conclude that micro finance savings services contribute to
poverty reduction seining that to improve the poverty reduction there is need to enhance the
savings for the micro finance. The third objective conclude that micro finance services exist
though not effective in providing the mechanisms for the poverty reduction, it therefore requires
a concentration and much focus on the micro finance environment to attain poverty reduction.
The study recommend for the need to ii~prove the micro finance loans provisions in terms
providing to all the people on fair terms at lower interest rates and accessible to the people in
order to improve business environment. The improved access to micro credit will enhance the
business development a mechanism that will stimulate business growth and development. On the
second objective, there is need for improved savings lead to investments especially in SMEs that
can provide a mechanism for business growth and development mix.
Description
a research report submitted to the college of economics and management in partial fulfillment of the requirements for the award of bachelor’s degree of business administration of Kampala international university.
Keywords
micro finance institutions, poverty alleviation