The Effects Of Microfinance Institutions On The Development Of Women Owned Micro Enterprises In Kampala. Case Study: Finca (Uganda)

ABSTRACT

The study assesses the role played by Micro Finance Institutions in the development of

women owned micro enterprises in Kampala. The study looks at the functions and

support micro finance institutions give to women enterprises. The main micro finance

institutions considered are Foundation for International Community Assistance (FINCA),

The research was carried out in Kampala which hosts the headquarters of these micro

finance institutions.

The hypothesis of the study was stated that micro finance institutions do not lend any

service to small business and micro finance institutions do not play any role in

extending credit to small businesses.

Data for the study was generated on the basis of a combination of questionnaires which

was designed both open and closed ended, and interviewing structure.

The researcher tested that micro finance institutions lend services to women extending

credit and facilitating low income women to start and expand income generating

activities through provision of an easily accessible and flexible banking network.

fhe study recommended that micro finance institutions should work at ensuring that

11oney should flow directly from micro credit providers to the needy with government

interference and the interest charge should at least be reduced to enable women carry their business successfully.