CHALLENGES FACED BY MICRO FINANCE AND ITS SUSTAINABLE DEVELOPMENT IN UGANDA. A CASE STUDY OF PRIDE MICROFINANCE KABALAGALA BRANCH (KAMPALA)

ABSTRACT

This study investigated the challenges faced by Kabalagala Pride Microfinanceand its sustainable development. This study was guided by the following research objectives: to investigate the challenges facing Microfinance institutions towards sustainable development, to investigate the constraints facing Microfinance institutions and to establish the relation between Microfinance institutions and sustainable development. This study adopted descriptive research design, specifically cross-sectional survey design using both the quantitative and qualitative methods of data collection. Data was collected using researcher devised questionnaires. The finding revealed that 64'Yo of the respondents had borrowed money from pride Microfinance limited, 28% were within the age range of 31-35 years, 89%agreed that the outreach of Micro finance service is 11101e challenging and 43% of the respondents agreed that Pride Microfinance ltd contributes to people's wellbeing. The finding revealed that majority 86% agreed that there are constraints that customers face, in response if these constraints could be overcome for the betterment of the peoples' wellbeing, 49% neither disagreed nor agreed. The finding further revealed that over 40% of the respondents were somewhat dissatisfied with the positions held in the company. 66% strongly agreed that Pride Microfinance ltd is really causing sustainable development in Uganda, 80% strongly agreed that Pride Microfinance ltd clearly communicates standards and expectations. 64% strongly agreed that the government has role towards enhancing the provisinns of Microfinance services to low income earners or poor households, 53% of the respondents agreed that there are the incentives provided by Pride Microfinance ltd are encouraging.The researcher concluded that Microfinance services are in position to sustain the development of low income and medium income earners in Uganda. The researcher recommended that the management of MF!s should stretch further to rural areas so as to be able to serve the needs and wants of the rural business men.