An Assessment On the Contributions of the Informal Sector On Community Development: A Case Study Buwenge Town Council Mnja -District

ABSTRACT The study carried out in Buwenge town council was to conduct an assessment on the contributions of the informal sector in development of Buwenge town council. The study was guided with three objectives that included examining the role of informal sector in development, establishing the challenges facing the informal sector and establishing the strategies that can be adopted to improve the performance of the informal sector. The study was descriptive in nature. It involved the use both qualitative and quantitative research approaches. The researcher adopted a questionnaire as a research instrument was information was sought from the respondents ofBuwenge town council with a sample of 60 respondents. The research found out that the informal sector contributes to development of Buwenge town council to a small extent through aspects like provision of cheap goods and services, household incomes, employment, tax revenue for government, provides of capital for transformation into formal sectors, Influence transport network provision and Reduction of social pressures. A small extent contribution was attributed to the challenges that the informal sector face that were seen to include Difficulty in accessing finances due to restrictive Legislation, almost non- existent training and extension facilities related to technology transfer, Inadequate information on business opportunities, Lack of accurate and reliable data, on skills inventory, competition from cheap imports, discriminatory attitude by private sector, donors, and formal sector services/products and Poor physical infrastructure facilities, the prevalence of realm of challenges prompted to seek if there has been government intervention in improving the state of affair which was found majorly negative, strategies were there for sought from the respondents on what they feel government and other stakeholders need to address for improved performance of the informal sector, this included extension of credit facilities for improving operations, Establishing supportive environment and regulations, establishment of guiding parameters for operation, Improving infrastructure, Provide access to training and Increase ability to obtain property. The researcher advances the following recommendations. The fact that informal sector play a role in the development of Buwenge town council indicates the need by the participants to the sector to harnessing their activities, consolidating the existing one and seeking to expand on the operations in order to enable them earn a living, Should incorporate all aspects of togetherness if necessary merging in order to expand into corporate entities. Restructuring the education system to focus more on the vocational and explicitly related to self-employment and business development. The government should devise ways of providing credit to the SMEs to start operating. The various banks should lower the interest rates on the loans as well as remove the requirements for securing a loan to levels which the informal artisans and hawkers can access funds and the government should ease the process of registering and opening a business so as to facilitate and encourage the formalization of the informal sector.

TABLE OF CONTENTS

DECLARATION

APPROVAL

.

ii

DEDICATION iii

ACKNOWLGEMENTS iv

LIST OF FIGURES v

LIST OF TABLES vi

ABSTRACT xi

CHAPTER ONE

INTRODUCTION 1

1.0 Introduction 1

1.1 Background of the study I

1.2 Problem Statement 3

1.3 Purpose of the study 4

1.4 Objectives of the study 4

1.5 Research questions 4

1.6.1 Scope of the study 4

1.6.1 Subject scope 4

1.6.2. Content scope 5

1.6.3 Geographical scope 5

1.7 Significance of the study 5

1.8 Operational definitions of key variables S

1.9 Conceptual framework 6

CHAPTER TWO 7

LITERATURE REVIEW 7

2.0 Introduction 7

2.1 Contributions of informal sector in community development 7

2.2 Challenges facing the informal sector in Uganda 9

2.3 Strategies for improving and formalization of the informal sector 12

CHAPTER THREE 15

viii

METHODOLOGY .15

3.0 Introduction 15

3.1 Research Design 15

3.2 Research population 15

3.2.1 Sample size 15

3.2.2 Sampling procedure 16

3.3 Data collection methods 16

3.3. 1 Questionnaires 16

3.4.2 Interviews 16

3.4 Sources of data 17

3.4.1 Primary Data 17

3.4.2 Secondary Data 17

3.5 Validity and Reliability of the study 17

3.6 Data processing and Analysis 18

3.6.1 Data processing 18

3.6.2 Data analysis 18

3.7 Ethical considerations 18

3.8 Limitations 18

CHAPTER FOUR 20

PRESENTATION, INTERPRETATION AND ANALYSIS OF FINDINGS 20

4.0 Introduction 20

4.1 Respondents Gender 20

4.1.2 Age distribution of respondents 21

4.1.3 Academic Qualifications of respondents 21

4.2 Contributions of the informal sector towards the development of Buwenge town council 22

4.2.1 Whether the informal sector plays a role in the community development 22

4.3.2 How the informal sectors contribute to the community development of Buwenge town

council 23

4.3.2 Other factors affect community development in Buwenge town council 24

4.3.1 Whether the informal sector is faced with Challenges 24

4.3.2 Challenges faced by the informal sector in the pursuit of work in Buwenge town 25

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4.3.2 Responsibility challenges faced in the informal sector in Buwenge town council 26

4.4 Strategies that can be adopted to improve the performance of the informal sector 26

4.4.1 Whether government has put up interventions to improve the performance of the

informal sector 27

4.4.2 Strategies have been adopted to improve the performance of the informal sector in

Buwenge town council 28

4.4.3 What should be done to further improve the development of the informal sector in

Buwenge sub~county 29

CHAPTER FIVE 30

SUMMARY, CONCLUSION, RECOMMENDATIONS AND 30

AREAS OF FURTHER STUDY 30

5.0 Introduction 30

5.1 Summary of the findings 30

5.2 Conclusions 31

5.3 Recommendations 32

5.4 Areas of further research 34

REFERENCES 35

Appendix A: Questionnaire for both Officials and the Local Community 37

APPENDIX B: Interview guide 40

Appendix C: Research Budget 41

Appendix D: Research Time frame 42