TABLE OF CONTENTS
DECLARATION ........................................................................................................................ i
APPROV AL ............................................................................................................................... ii
DEDICATION ......................................................................................................................... iii
ACKNOWLEDGEMENT ....................................................................................................... iv
TABLE OF CONTENTS .......................................................................................................... v
ABBREVIATIONS AND ACRONYMS ............................................................................... vii
ABSTRACT ........................................................................................................................... viii
CHAPTER ONE ........................................................................................................................ I
IN"TRODUCTION ..................................................................................................................... 1 I
1. 0 Introduction .................................................................................................................. 1
1.1 Background to the Problem .......................................................................................... l
1.2 Problem Statement ....................................................................................................... 3
1.3 Purpose of the Study .................................................................................................... 4
1.4 Objectives ofthe Study ........................... .................................................................... .4
1.5 Research Questions ...................................................................................................... 4
1.6 Scope of the study ....... ................................................................................................. 5
1. 7 Significance of the Study ......... .................................................................................... 5
CHAPTER TWO ...................................................................................................................... 7
LITERATURE REVIEW ......................................................................................................... 7
2.0 Introduction .................................................................................................................. 7
2.1 Benefits from Small Scale Credits to Women ............................................................. 7
2.2 Small Scale Credit Provide Entrepreneurial Skills to Women ..................................... 8
2.3 Contribution of Small Scale Credit to Self Employment.. ........................................... 9
2.4 How Women Overcome the Problem of Small Scale Credit.. ................................... lO
CHAPTER THREE ................................................................................................................ 12
METHODOLOGY .................................................................................................................. 12
3.0 Introduction ................................................................................................................ 12
3 .1 Research Design ......................................................................................................... 12
3.2 Population and Sample ............................................................................................... 12
3 .3 Satnple size ................................................................................................................. 13
3.4 Sampling Procedures .................................................... .............................................. 13
3.5 Data Collection Methods ........ .................................................................................... 13
3.5 .1 Questionnaires .. ..... ........................................................................................... 13
3.5.2 Interview .......................................................................................................... 14
3.6 Data Analysis .......................................................... ........................................... ........ 14
CHAPTER FOUR ................................................................................................................... 15
RESEARCH FINDIN"GS ........................................................................................................ 15
4.0 Introduction .......................................................................................................... 15
4.1 Profile Characteristics of Respondents ...................................................................... 15
4.2 Benefits of Small Scale Credits' to Women ............................................................. .17
4.3 Contribution ofMFis in the Provision of Entrepreneurial Skills to Women ...... .1 8
4.4 Contribution of MFis to Self Employment of Women ............................................. .20
4.5 How Women Overcome Problems from Small Scale Credits ............................ .21
v
4.5 .1 Problems facing women in their pursuit for credits ............................................... .21
4.5.2 Proposed solutions to overcome problems associated with small scale credits ..... .22
CHAPTER FIVE ..................................................................................................................... 24
SUMMARY, CONCLUSIONS AND RECOMMENDTIONS ........................................... 24
5.0 Introduction ................................................................................................................ 24
5.1 Sum1nary of Findings ................................................................................................. 24
5.2 Conclusions ................................................................................................................ 25
5.3 Recommendations ...................................................................................................... 25
REFFERENCES ..................................................................................................................... 27
APPENDICES ......................................................................................................................... 29
ABSTRACT This study set out to examine the contributions of Microfinance Institutions to poverty reduction among the self employed women in Mbarara Town council, Mbarara district. It was guided by three specific objectives which included examine the; I) benefits to women resulting from their capital access to credit; II) contribution of MFis towards provision of entrepreneurial skills and promotion of self employment to women; and III) how women in Mbarara overcome problems associated with acquisition of MFI loans. Using a case study and a descriptive correlational and cross-sectional survey design and following a quantitative approach, data was collected through questionnaires and interviews from 40 respondents including food vendors, shopkeepers/owners, tie and die makers and executives Foundation for Intemational Communities Assistance (FINCA), sampled using simple random and purposive techniques. Data analysis was done using SPSS by computing simple and complex frequency tables or cross-tabulations. The findings showed that; i) 16 respondents (42%) used small scale credits to build residential houses followed by 24% who used the loan for paying school fees, 11% increased their business capital, while 8% claimed no benefit; ii) women status has also improved; iii) 32 women (69%) have joined entrepreneurial skills training in 2011, however they need more skills and knowledge on marketing, project planning and successful management of business; iv) food vendors (36%) are the biggest business group who received training from MFis and on the whole, 22 respondents received training including food vendors, tailors (27%), tie and dye makers (23%) and shop owners (14%). Most respondents who did not get training are those in the tie and dye business (50%) followed by shop owners (30%). The researchers concluded that the contribution of small scale credits to poverty reduction among women in Mbarara is commendable and reasonable. Various benefits have been achieved such as buying land plots, improving shelters by building decent and modem houses, paying school fees for their children in Mbarara primary and secondary schools, and opening more branches for their business projects. The researcher recommended that to some extent loans are weighing heavily on beneficiaries, thus credit terms and conditions should be reviewed in order to accelerate poverty reduction and help to uplift small and medium enterprises (SMEs). Microfinance Institutions (MFis) should strengthen their education programmes to women who are their customers so that their business can be sustainable. The govemment should empower women with entrepreneurial knowledge and skills so that they can be aware of loans/credits issues before approaching lending agencies. The govemment should allocate more money for giving loans to women with fair lending conditions beneficial to women.
