The Role of Microfinance Institutions On Entrepreneurship Development a Case Study of Opportunity Uganda, Owino Branch

Table Of Contents

Declaration . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .. . . . . . . . . . i

Statement of approval . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .. . . . . . .. . . . ii

Dedication . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .. . . . . . . . . . . . . . . . . . . . . . . iii

Acknowledgement . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .. . ......... .. iv

Table of Contents.............................................................................. v

List of tables...................................................................................... ix

List of Figures . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . x

Abbreviations . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . ... . . ... xi

Abstract . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .. . . . . . . . . . . . . . . .. . . . . . .. . . . xii

CHAPTER ONE... . . . . . . .. . . . . . . . . . . . . . . . . . .. . .. . . . . . . . . . . . . . . . . . . . . . . . . . . . .. . . .. .. . . . . . . . .. . . . 2

1.0 INTRODUCTION

1.1 BACKGROUND OF THE STUDY..................................................... 2

1.1.1 OPPORTUNITY UGANDA .......................................................... . 2

1.2 STATEMENT OF THE PROBLEM..................................................... 4

1.3 PURPOSE OF THE STUDY.............................................................. 4

1.4 OBJECTIVES OF THE STUDY.......................................................... 4

1.3.1 General Objectives...................................................................... 4

1.3.2 Specific Objective . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .. .. . . . . . . . .. 4

1.5 RESEARCH QUESTIONS................................................................ 4

1.6 SCOPE OF THE STUDY................................................................... 4

1.7 SIGNIFICANCE OF THE STUDY..................................................... 4

1.8 CONCEPTUAL FRAMEWORK........................................................ 4

CHAPTER TWO... . . . . . . . . . . . . . .. . .. . . . . . . . .. . . . . . . . . . .. . .. . ... . . . .. . . . . . . . .. . . . . . .. ... ... . . . . 6

LITERATURE REVIEW

V

2.0 INTRODUCTION . . . . . . . . . . . . . . . . . . . . . . . . .. . . .. . . . . . . . . . . . . . . . . .. . . . . . . . . . . . . ... .. ........ 6

2.1 OVERVIEW OF MICROFINANCE.... .. ....... ..... ... ... ... .......... ...... ......... 6

2.1.1 History of Microfinance in Uganda................................................... 7

2.1.2 Key providers of Microfinance include............................................. 8

2.1.3 Examples of Micro Finance in Uganda............................................. 8

2.2 OVERVIEW OF ENTREPRENEURSHIP............................................. 9

2.3 ENTREPRENEURSHIP IN UGANDA . . . . . . . . . . . . . . . . . . . . . ... . . . . . . . . . . .. . . ... ... . . 10

2.4 RELATIONSHIP BETWEEN ENTREPRENEURSHIP AND

MICROFINANCE . . . . . . .. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . ... . . . 10

2.5 SAVING CULTURE . . .. . . . . . . . . . . . . . . . . . . . . . . . . . . .. . . . . . . . .. . . . . . . . . . . .. . . . . . . . .. . . . . . .... 12

2.6 ACHIEVEMENTS OF MICROFINANCE AS AN INS1RUMENT OF

WEAL1H CREATION........................................................................ 13

2.7 CHALLENGES OF MICROFINANCE AS AN INS1RUMENT

ENTREPRENEURSHIP DEVELOPMENT . . . . . . . . . . . . . . . . . . . . . . . . . .. . . . . . . . . . . . . .. . .. . . 17

CHAPTER THREE... ... ... ... ... ... ... ... ... ... ... ... ... ... ... ... ... ..• ... .... ... ... ... ... ... 24

ME1HODOLOGY

3.0 INTRODUCTION.......................................................................... 24

3.1 RESEARCH DESIGN..................................................................... 24

3.2 POPULATION OF STUDY............................................................. 24

3.3 SAMPLE FRAMEWORK . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .. .. . . . .. . . . . . . . . . ... 24

Sample Size . . . . . . . . . . . . . .. . . . . . . . . . .. . . . . . . . . . . . . . . . . . . . . . . . . . . .. . . . . . . . . . . . . . .. .. . . . . .... 24

Sample Selection......................................................................... 24

3.4 INS1RUMENTS OF DATA COLLECTION.................. ... .. .... .............. 24

Questionnaires.................................................................................. 24

Interviews........................................................................................ 25

3.5 SOURCES OF DATA...................................................................... 25

3.5.1 Primary Data........................................................................ 25

VI

3.5.2 Secondary Data.................................................................... 25

3.6 DATA PROCESSING AND ANALYSIS.............................................. 25

3.8 LIMITATIONS OF 1HE STUDY......................................................... 25

CHAPTER FOUR.............................................................................. 27

PRESENTATION, ANALYSIS AND INTERPRETATION OF 1HE 27

FINDINGS

4.0 Introduction................................................................................. 27

4.1 Opportunity Uganda's Role In Helping Entrepreneurs Start Businesses 27

And Create Wealth ........................................................................... .

4.2 Number Of Years Interviewees Have Been Members Of Opportunity 27

Uganda .......................................................................................... .

4.3 Benefits To Their Oients from Opportunity Uganda............................. 28

4.4 Assets Bought.............................................................................. 29

4.5 Increase In Income . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . ... 29

4.6 Entrepreneurship Training . . . . . . . .. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .. 29

4.7 Areas Where Clients Require More Training . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . ... 29

4.8 Challenges Faced By Entrepreneurs . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 30

4.9 Access To Funds And Saving Culture Of Entrepreneurs........................ 30

4.10 Percentage Of Income Saved . .. .. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .. . . . . . . . .. . . . 31

4.11 Reasons For Saving . . . . . . . . . . . . . .. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .. .. . . . . . . . . . . . . . . .. . .. 32

4.12 Challenges Faced By Microfinance Institutions . . . . . . . . . . .. . . . .. . . . . . . . . . . . . .. .. 33

4.13 Source Of Challenges ... .. . .. ......... .... . ........ ...... ... .......... ........ ... ...... 33

4.14 Government Policies That Discourage Entrepreneurship..................... 33

CHAPTER FIVE... . . . . . . . . . . . . . . . . .. . . . ... . . . . . . . . . . . . . . . . .. . . . . . . . . . . . . . . . . . . . . . . . . . . . .. . . ... 35

SUMMARY OF FINDINGS, CONCLUSION AND ECOMMENDATIONS 35

4.0 Introduction . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .. 35

4.1 Summary Of Findings . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . ... . 35