IMPACT OF MICROFINANCE SERVICES AND WOMEN'S ECONOMIC EMPOWERMENT; A CASE OF PRIDE MICROFINANCE LTD.KAMPALA,UGANDA

TABLE OF CONTENTS

DECLARATION .............................................................................................................................. i

APPROVAL........................................................................................ ............. . .. 11

DEDICATION ................................................................................................................................ iii

ACKNOWLEDGEMENTS ............................................................................................................ iv

LIST OF ABBREVIATIONS ......................................................................................................... x

LIST OF ·rABLES ........................................................................................................................ I

LIST OF FIGURES ......................................................................................................................... 2

ABSTRACT .................................................................................................................................... 3

CHAPTER ONE ............................................................................................................................ -1

INTRODUCTION ......................................................................................................................... -1

1.0 Introduction ............................................................................................................................... -1

1.1 Background of the study ............................................................................................................ -I

1.1.1 Historical Background ............................................................................................................ 6

1.1.2 Theoretical Background ......................................................................................................... 7

1.1.3 Conceptual Background ......................................................................................................... 8

1.1.4 Contextual Background ........................................................................................................ I 0

1.2 Problem Statement. .................................................................................................................. I I

1.3 General Objectives of the Study ..................... . . 12

1.3.1 Objectives................................................................................................................. .. 12

1.4 Research Questions .................................................................................................................. 12

1.5 Hypotheses of the Study .......................................................................................................... 13

1.6 Conceptual Frarnework ............................................................................................................ 13

1.7 Significance of the Study ......................................................................................................... 1-1

1.8 Justification of the Study ......................................................................................................... 1-1

1.9 Scope of the Study ................................................................................................................... 15

1.10 Operational Definition ofTenns and Concerts .................................................................... 15

CHAPTER TWO ............................................................................. ........................................... I 7

LITERATURE REVIEW ........................................................................................................... I 7

2.0 Introduction ............................................................................................................................. I 7

2.1 Conceptual Review .................................................................................................................. I 7

2.2 Theoretical Review .................................................................................................................. I 9

2.3 Financial Training and Women's Economic Empowerment .................................................. 20

2.4 Savings and Women's Economic Empowerment ................................................................... 22

2.5 Credit and Women's Economic Empowerment ...................................................................... 2-1

2.6 Women economic empowerment .......................... . . .. 26

2.7 Summary of the Literature Review ..................................................... . . .:\0

CHAPTER THREE ..................................................................................................................... 31

METHODOLOGY ...................................................................................................................... 31

3.1 Introduction ........................................................................................................................... 3 l

3.2 Research Design ...................................................................................................................... 3 I

3.3 Study Population ...................................................................................................................... 3 I

3.4 Sample Size and Selection ....................................................................................................... 32

3.5 Sampling Techniques and Procedures ..................................................................................... ,-1

3.6 Data Collection Methods................................. . .................................................................... 3-1

3.6.1 Questionnaire Survey ............................................................................................................ ,-1

3.6.2 Interviews ............................................................................................................................. 35

vi

3.6.3 Documentary Review ........................................................................................................... 36

3.7 Data Collection lnstruments .................................................................................................... 36

3.7.1 Self-Administered Questionnaire ......................................................................................... 37

3.7.2 Interview Guide .................................................................................................................... 37

3.7.3 Documentary Checklist ........................................................................................................ 37

3.8 Validity and Reliability ........................................................................................................... 38

3.8.1 Validity ................................................................................................................................. 38

3.8.2 Reliability ............................................................................................................................. 38

3.9 Data Collection Procedme ....................................................................................................... 39

3.10 Ethical Considerations..................................................................................................... .39

3.11 Data Analysis ........................................................................................................................ .\0

3.11.1 Quantitative Analysis ......................................................................................................... .\0

3.11.2 Qua! itative Data Analysis ................................................................................................ .40

3.12 Measurement of Variables................................................................................................ .. . .\0

CHAPTER FOUR ....................................................................................................................... -1 l

PRESENTATION, ANALYSIS AND INTERPRETATION OF FINDINGS ....................... .\!

4.0 Introduction ............................................................................................................................. .\I

4.1 Biographic Characteristics ....................................................................................................... .\ I

4. 1.1 Age of Respondents .............................................................................................................. .\ I

4.1.2 Sex Distribution of Respondents .......................................................................................... .42

4.1.3 Marital Status ........................................................................................................................ 42

4.1.4 Education Background ......................................................................................................... .43

4.1.5 Nature of Respondents .......................................................................................................... .43

4.1.6 Period Spent Using Pride Microfinance Services ................................................................. .\.\

4.2 Microfinance Services ............................................................................................................. 45

4.2.1 Microfinance Training Services ........................................................................................... 45

4.2.2 Microfinance Saving Services ............................................................................................. 48

4.2.3 Microfinance Credit Services ............................................................................................... 5 I

4.4 Women Economic Empowerment .......................................................................................... 54

4.5 Testing the Hypothesis ............................................................................................................ 56

4.5.1 Correlation of Microfinance Training and Women Economic Empowerment .................... 56

4.5.2 Regression ofMicrofinance training Services and Women Economic Empowerment ...... 57

4.5.3 Correlation of Microfinance Savings Services and Women Economic Empowerment.. ..... 58

4.5.4 Regression of Microfinance Savings Servicec and Women Economic Empowerment ....... 59

4.5.5 Correlation ofMicrofinance Credit Services and Women Economic Empowerment ......... 60

4.5.6 Regression ofMicrofinance Credit Services and Women Economic Empowerment.. ........ 61

CHAPTER FIVE ......................................................................................................................... 62

DISCUSSION OF FINDINGS, CONCLUSIONS AND RECOMMENDATIONS ............... 62

5.0 Introduction ........................................................................................................................... 62

5.1 Discussion of Findings................................................................................................... ... 62

5.1.1 The Effect ofMicrofinance Training on Women's Economic Empowerment .................... 62

5.1.2 The Effect of Savings on Women's Economic Empowerment.. .......................................... 63

5.1.3 The Effects of Credit on Women's Economic Empowerment ............................................. 64

5.2 Conclusions ............................................................................................................................. 65

5.3 Recommendations ................................................................................................................... 65

5.4 Areas for Further Study ................................................................................ .. .. ........ 66

REFERENCES ............................................................................................................................ 67

APPENDICES .............................................................................................................................. 76

APPENDIX I - QUESTIONNAIRE ........................................................................................ 76

APPENDIX II: INTERVIEW GUIDE FOR FEMALE PRIDE MICROFINANCE LTD

CLIENTS ....................................................................................................................................... 79

ABSTRACT 

This study examined the effect of microfinance services on women's economic empowerment in Kampala. This was initiated as a result of deteriorating women economic status despite the existence of microfinance services focused on women. To provide answers for the above gap the following research objectives were stated i) to investigate the effect of microfinance training on women's economic empowerment, ii) to assess the effect of savings on women's economic empowerment and iii) to establish the effects of credit on women's economic empowerment. In order to obtain answers for the research questions raised from the above objectives a descriptive analytical cross sectional survey design was adopted. In this study, the population comprised or 110 female clients and 10 staff of Pride Microfinance Ltd in Kampala. Both questionnaires and interview guides were used to obtain data for the study. Data was analyzed using SPSS version I(, and statistical variables of mean and standard deviation was used in interpreting the data. The key findings according to the objectives was that there was a strong positive relationship between micro-finance training service and women economic empowerment and that training alone predicted 20. 1% of the variance in women economic empowerment in Kampala whereas other factors 79.8%

On microfinance savings services known that, savings are not done voluntarily. by women and besides that women could not access their savings all because of' the default of other members. Besides that it was established that credit services of Pride microfinance were found not convenient to women, they were risky because of the group lending methodology used. and the interest rate charged on them in relation to the income of' women was high. Basing on the above findings it was recommended that, management of pride microfinance had to review its clients training service so as to incorporate training of entrepreneurship skills like bookkeeping market searching skills and business planning skills that were presumed to be so vital to the economic empowerment.