The Effects of Microfinance Institutions Services On the Performance of Small Businesses Enterprises in Makindye Division. (Case Study of Makindye Division)

ABSTRACT

The purpose of the study was to assess the contribution of microfinance services on the growth of small scale businesses and the objectives were to establish the percentage growth of small scale businesses, to ascertain the services and products rendered by small scale businesses after accessing micro credit facilities, to establish the practices employed in paying back the loans and interest rate and to establish the tangible achievements arising from accessing financial services. the study adopted a descriptive research design and followed both qualitative and quantitative 1pproaches to research. The study sample included 90 small scale businesses covering, retail; hops. market vendors and kiosks operators. The respondents to be included in the sample study 1/ere selected using random sampling method and the researcher used a sample of 90 cspondcnts. Questionnaires, personal interviews and observation were used in data collection. )ata was gathered. assembled, classified, edited and corded which will be mainly done to ensure ccuracy and consistency of information provided. Coding was also done to transform the 1formation into a more presentable form. Data was analyzed using SPSS and Microsoft excel nd the results presented using tables. charts and graphs. egarding the Jindings of the study. there is an increase in the grow'lh of small scale businesses ; a result of accessing financial services from MFI's. This is shown by the increased ·ofilability and tangible achievements arising from accessing financial services. 1e researcher concluded that there is an increase in the groW'lh of small scale businesses as a suit of accessing financial services from MFl's and recommended that there is need to reduce 1 the interest rates in all microf111ance institutions that offer financial services to small 1sinesses such that it can benefit the business community in terms of low burden in paying ck the loan and this further lead to growth of more businesses and there is need for the 1·ernment to give more funding to microfinance institutions since they are involved more in ancing small scale businesses and they are more in contact than the government.