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
ABSTRACT The purpose of the study was to examine the contribution of microfinance institutions to the development of small scale businesses in tororo Di~trict using the objectives to examine the nature of financial services offered by Micro .PThance Institutions to the small scale business owners of Tororo District, to find out the challenges faced by Micro-finance Institutions while admini~tering loans to the small scale business owners iii Tororo District and finally to establi~h the relationship between Micro-finance Institutions and Small and medium enterprLs’es. The researcher used a cross sectional and descri;otive research desiqns to collect qualitative and quantitative data .A sample sfre of 92 respondents was used in the study. Questionnaire, interviews and the research guide were used for collecting data from respondents. The research findings revealed that out of the 92 respondents interviewed on the Nature of financial services offered by Micro-Finance Institutions, the biqgest percentage of respondents that is 53(58%) of the respondents strongly agreed said that Microfinance institutions provide financial literature to people followed by 49(S3%,,~ of the respondents who strongly agreed that Microfinance institutions offer enterprise development services, on the Challenges faced by Micro-finance Institutions, the higgest percentage of respondents that was 69~”76%,) strongly agreed that many small business clients have inadequate and inaccurate finandal records and on the Relationshio between Micro-finance Institutions and Small and medium enterprises, the biggest number of respondents that was 60(65%) of the respondents strongly aqreed that Micro finance institutions offer financi~l advice/trainiriq to the owners of small scale businesses on how to manage loans hence helping them to manage their business well leading to development. The researcher recommended that a study should be done to find out why many SMEs do not make use ofthe micro insurance.
