Microfinance Credit, Capacity Building on Poverty Alleviation among Women in Mbarara Municipality, Uganda

ABSTRACT 

The aim of this study was to assess the level of microfinance credit and capacity building on poverl:y alleviation among women in Mbarara-Uganda. In this study, the main objective of the study was to analyze the impact of microfinance and capacity building on poverty alleviation among women. In this study, microfinance credit and capacity building for poverty alleviation are the independent variable while poverty alleviation and is the dependent variable. This research was grounded in the social capital theory agrees with the findings of the study. The study employed descriptive and correlation research design where quantitative data collection approach was used in order to achieve a high degree of reliability and validity of results. A total of 310 respondents involved in microfinance institutions were used in the study. Probability sampling techniques were used to elicit responses to the research questionnaire method as well. The findings reveal that youths aged between 20 -39 years accounted for the highest percentage 41.3%. The results on forms and sources of microfinance credit revealed that the respondents are not very satisfied with the three forms of microfinance credit. The findings on effect of capacity building reveal that the respondents were satisfied with issues of training and women empowerment. The results also reveal that capacity building aspects of training and women empowerment are significantly correlated (r = 0.063; p 0.000) with poverty alleviation leading to the rejection of the null hypothesis. This study strongly recommends that there is need to come up with innovative microfinance institutions that are supportive of their own role in assets accumulation and wealth creation for their clients. There may be a need to re-examine the real issues contributing to household poverty and reevaluate how microfinance could be integrated with other poverty reduction policies to form a sustainable synergy. The study was organized into five chapters which have been presented as follows; the introduction to the study in chapter one, literature review in chapter two and the research methodology in chapter three. In chapter four is data presentation, analysis and interpretation of findings. Finally in chapter five is the summary of findings, conclusions and recommendations to enable effective utilization of the findings of this study.

TABLE OF CONTENTS

Preilminary pages Page

Declaration A ii

Declaration B iii

Approval sheet iv

Dedication V

Acknowledgement vi

Abstract vii

Table of Contents viii

List of Tables xi

Abbreviations / Acronyms xii

Chapter One THE PROBLEM AND ITS SCOPE

Background to the Study 1

Statement of the Problem 5

Purpose of the Study 6

Objectives of the Study 7

Research Questions 8

Hypothesis 9

Scope of the Study 9

Significance of the Study 10

Operational Definition of Key Terms 11

Chapter Two REVIEW OF RELATED LITERATURE 13

Concepts, Opinions, Ideas from Authors! Experts 13

Theoretical Perspective 18

Related Studies 24

Chapter Three METHODOLOGY

Research Design 32

Research Population 32

Sample Size 32

Sampling Procedure 33

Data Collection Procedures 35

Data Analysis 36

Ethical Considerations 37

Limitations of the Study 37

Chapter Four PRESENTATION, ANALYSIS AND INTERPRETATION OF DATA 38

Chapter Five FINDINGS, CONCLUSION AND RECOMMENDATIONS 59

Findings 59

Conclusions 61

Recommendations 62

References 64

Appendices 70

Appendix 1 A- Transmittal Letter 70

Appendix II - Clearance from Ethics Committee 72

Appendix III- Informed Consent 73

Appendix IV- Face Sheet 74

Appendix V - Research Instruments 75

Appendix VI - Sloven’s Formula 81

Researchers Curriculum Vitae 82