Microfinance Institutions and The Development of Small Scale Businesses in Tororo District~Tororo Main Market

TABLE OF CONTENTS

DECLARATION

APPROVAL I

DEDICATION ii

ACKNOWLEDGEMENT iv

TABLE OF CONTENTS ~ v

LIST OF TABLES xi

LIST OF ABBREVIATIONS xii

ABSTRACT

ChAPTER ONE:~~. n o nu~n

INTRODUCTION. nwuu~un. ,nnn~Nenu~n~nt, nøg~n~ nfl,

1.0 Introduction; 1

1.1 Background of study; 1

1.2 Statement of the Problem; 4

1.3 Purpose of the study; 4

1.4 Objectives of the Study; 5

1.5 Research Questions; 5

V

1.6 Scope of the Study; ~

1.6.1 Content Scope; 6

1.6.2 Geographical Scope; 6

1.6.3 Time Scope; 6

1.7 Significance of the study; 6

1.8 Definitions of operational terms 7

CFIAP1~ER ~r~A~O u~,unn,,wuuau,,,ub flO ~

LITERAT~JRE REVIEW u

2.0 Introduction 8

2.1 Nature of financial services offered by Micro-Finance Institutions 9

2.2 Challenges faced by Micro-finance Institutions 10

2.3 Relationship between Micro-Finance Institutions and the performance of Small

scale businesses 13

2.4 Conclusion 15

C~1AP’rER ~~F1REE ~ fl...

M ET~1ODOLOGY ~•~

3.0 Introduction; 17

vi

Research Design •.........e.....•t...et........e................................nnn.....n.17

Study Population;~.. 18

Sample 18

Sampling l’lettiod, •••~•~SIII•t~•geI.•IIsesI~.•t......t.•......•eI..I.e.....n...nnn.. ..............19

Data Collection lvlethocls/lnstrurner,ts ~•. . . . ........•.......... . ......... . .. .. .. . . . . . ..... ........19

Questionnaires,

Intervlevvs,~

~

20

3.1

3.2

3.3

3.4

3.5

3.5.1

3.5.2

3.5.3 Documentary Re~ilevv ................................................................................20

3.6 Rellabllll:y and validity of the Instrumnent.........................................................21

3.7 Data processing and analysls..........................................................................21

3.8 limItation of the Studly; ......................................................................22

CHAPTER

DATA PRESENTATION, DISCUSSION AND ANALYSIS OF FINDINGS..............23

4.0 IntroductIon, .... .... .. . .. ........... . . . ...... . . ....... ... . . . .............. .. ... ... . .. . ..... .. . .... . . . . ..... ..23

4.1 l)ernographlc lnftrmnatlon of the respcndents, •................................................23

table 4.3. Shows education lei~el of a manager ....................................................~..27

vii

4.2Findings on the Nature of financial services offered by Micro-Finance Institutions...30

4.3 Findings on the Challenges faced by Micro-finance Institutions .................33

4,3 Findings on the Relationship between Micro-finance Institutions and Small and

medium enterprises~36

According to the research findings on table 8 above, out of the 92 respondents

interviewed on whether Micro finance institutions offer low interest loans to small scale

business which if utilized and managed well leads to their development, 52(57%) of the

respondents strongly agreed, 15(16%) agreec.l ,ll(12%) strongly disagreed and finally

14(15%) of the respondents disagreed~37

CIIAP’rER FIVE .~ ~

CONCLUSION AND RECOMMENDATION

5.0 Introduction 39

5.1 Summaries of major findings 39

5.1.1 Findings on the Nature of financial services offered by Micro-Finance

Institutions 39

5.1.2 Findings on the Challenges faced by Micro-finance Institutions 39

5.1.3 The Relationship between Micro-finance Institutions and Small and medium

enterprises 40