Contribution of Micro Finance Towards the Socioeconomic Empowerment of Women: (Case Study: Kamwenge Sub County, Kamwenge District)

ABSTRACT This study was set tow empirically establish the contribution of micro fmance towards the social economic empowerment of women micro - enterprises in Kamwenge district. It specially focused on the following objectivities; establishing micro finance services accessed by women micro entrepreneurs, indentifying problems encountered by women m1cro entrepreneurs in Kamwenge district during and after accessing and analyzing the socio-economic status of women entrepreneurs, before and after accessing micro finance and soliciting for suggestions on how to improve on the services by women entrepreneurs in Kamwenge district The study drew on primary source of data on 90 participants. The study used to descriptive, survey design where both qualitative and quantitative method were used, a structured interview guide focused group guide and key informative guide were used to collect data from the respondents. Quantitative data that was edited and recoded was analysed using percentages. Qualitative data that was analysed using content basing on themes derived from research objective. The findings of the study indicated that women micro entrepreneurs in Kamwenge district access a wide variety of micro finance survives which includes micro loans as the most accessed followed by micro savings facilities and training related to business management skills respectively. The majority of the respondents were doing some IGAS prior to accessing micro finance enabled women entrepreneurs to contribute towards cost related to children education. Family feeding, health care and other family demands. This has gone along way in improving the welfare of the family and the communities. However, during the process of accessing and utilizing micro finance, women entrepreneurs experience a number of problems which include high transport costs incurred when frequenting micro fmance institutions, X increasing household responsibilities, tight repayment schedules and victimization of other solidarity group mate s, failure to service her micro loan. Basing on the above, the following recommendations were made; Micro finance institutions should ensure that the business skills training component should be a prerequisite to women micro entrepreneurs before and after accessing micro loans such as cost benefit analysis. The incentive of micro loan increment in subsequent cycle was to utilize the increased funds. Micro finance institutions should endeavor to establish outreach of women micro entrepreneurs. The repayment schedule should be adjusted from weekly to monthly. Women micro entrepreneurs should undertake !GAS in which they have prior experience, interest, convenient and above all profitable. The ministry of finance, planning and economic development in conjunction with bank of Uganda should put incentives such as waving off taxes to micro finance institutions so as to encourage more women micro entrepreneurs and finally the ministry of gender, labour and social development should take an initiative to mobilization and guiding women micro entrepreneurs to for savings and credit societies of their own.

TABLE OF CONTENTS

DECLARATION ................................................................................................................... i

APPROVAL ......................................................................................................................... ii

TABLE OF CONTENTS ..................................................................................................... iii

DEDICATION .................................................................................................................... vi

ACKNOWLEDGEMENT .................................................................................................. vii

LIST OF ABBREVIATIONS ............................................................................................ viii

LIST OF TABLESABSTRACT ........................................................................................... ix

ABSTRACT ......................................................................................................................... x

CHAPTER ONE ................................................................................................................. 1

INTRODUCTION .............................................................................................................. 1

1.1 Background ..................................................................................................................... 1

1.2. Problem statement. ......................................................................................................... 2

1.3 Major Research Objective ............................................................................................... 3

1.4 Specific Research, Objectives ......................................................................................... 3

1.5 Research Questions ......................................................................................................... 3

1.6 Scope of the study ........................................................................................................... 3

1.7 Significance of the study ................................................................................................. 4

1.8 Conceptual Framework ................................................................................................... 5

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

LITERATURE REVIEW ................................................................................................... 6

2.1 Introduction .................................................................................................................... 6

2.2 Evolution of micro finance and its components ................................................................ 6

2.3 Women's accessibility to credit. ...................................................................................... 7

2.4 Challenges encountered by women in acquisition of credit. ............................................. 8

2.5 Women's utilization of micro credit. ............................................................................... 9

2.6. Socio-economic effect on woman's utilization of micro credit.. .................................... 12

ll1

CHAPTER THREE .......................................................................................................... 15

METHODOLOGY ........................................................................................................... 15

3.1 Introduction; ................................................................................................................. 15

3.2 Research Design ........................................................................................................... 15

3.3 Study area ..................................................................................................................... 15

3.4 Population and sample selection .................................................................................... 16

3.4 Research Instruments. - ................................................................................................. 17

3.4.1 Validity and Reliability of the Research Instrument.. .................................................. 17

3.5 Variables assessed ......................................................................................................... 18

3.6 Procedure of the study ................................................................................................... 19

3. 7 Data Processing ............................................................................................................. 20

3. 7.1 Data Editing ............................................................................................................... 20

3. 7.2 Data Coding ............................................................................................................... 20

3.7.3. Data classification ..................................................................................................... 20

3. 7 .4. Tabulation of data ..................................................................................................... 20

3.7.5. Qualitative data ......................................................................................................... 20

3. 7 .6. Quantitative data ....................................................................................................... 21

3.8 Problems encountered and their solutions ...................................................................... 21

CHAPTER FOUR. .......................................................................................................... 22

PRESENTATION AND INTERPRETATION OF RESULTS ................................ 22

4.1 Introductions ...................................................................................................... 22

4.2 General information about the respondents .............................................. 22

4.2.1 Age of respondents ........................................................................................ 23

4.4.2 Education levels of respondent.. ................................................................ 24

4.2.3 Occupation of respondents ......................................................................... 26

4.3 Micro finance services accessed by respondents ...................................... 27

4.4 Problems experienced by respondents in accessing micro credit.. ....... 34

4.4.1 Problems encountered after accessing micro finance .......................... 35

4.5 Activities accomplished with micro finance service .................................. 37

4.5.1 Income generating activities carried out by the respondents .......... 37

4.5.2 Micro savings and its utilization .................................................................... 41

IV

CHAPTER FIVE ............................................................................................................ 43

CONCLUSIONS AND RECOMMENDATIONS ........................................................ 43

5.1 In traduction ............................................................................................................. 4 3

5. 2. Conclusion .............................................................................................................. 43

5.3 Recommendations ................................................................................................. 45

5.4 Suggested areas for further research ............................................................... 48

BIBLIOGRAPHY ............................................................................................................. 49

APPENDICES ................................................................................................................... 51

APPENDIX A .................................................................................................................... 51

QUESTIONNAIRE ............................................................................................................ 51

APPENDIX B: ................................................................................................................... 55

INTERVIEW ...................................................................................................................... 55

APPENDIX C .................................................................................................................... 56

BUDGET ............................................................................................................................ 56

APPENDIX D .................................................................................................................... 57

WORK PLAN .................................................................................................................... 57

A MAP OF UGANDA SHOWING THE LOCATION OF KAMWENGE SUB COUNTY,

KAMWENGE DISTRICT .................................................................................................. 58