This chapter gives a presentation of a brief overview or background to the
study, statement of the problem, and purpose of the study, study
objectives, research questions, scope and significance of this study.
1.1 Background to the study
With growing levels of poverty and unemployment at their highest, many
people in South Sudan; young and old, men and women, are venturing
into business so as to make ends meet. The economy of south Sudan,
which is almost entirely dependent on oil revenue (Shankleman, 2011), is
highly vulnerable to external shocks that come as a result of fluctuations
on the world market. In view of this, various lending institutions have
come up with products to finance entrepreneurs. With all these
developments, starting up a business has always been a mountain to
climb for prospective entrepreneurs, many of whom have resorted to
using their savings or borrowing from relatives and friends. Tony Killick
(1981) notes that, “Often the informal sector is said to be discriminated
against in the capital market and is unable to obtain funds, no matter
what the interest rate. It is quite evident that lack of initial capital
imposes a severe constraint in starting up their businesses.
Microfinance has huge development potential in Southern Sudan where
the majority of the population lives below poverty threshold and have no
access to the conventional banking system. Given the large unemployed
population and the sparsely available jobs it can provide much needed
initial finance to jump start small enterprises for enhanced livelihood
opportunities and support to the growing private sector (Shahidur,
1999). Current programs have generated much enthusiasm and
excitement at all levels of government in the very charged political
environment that precedes one year of independence. However, despite
the support from a number of support organizations and the presence of
a number of microfinance institutions in Southern Sudan since 2005,
the development of the industry has been slow and constrained.
BUTRUS, O (2021). Microfinance And People’s Income Status In Central Equatorial State: A Case Study Of Juba County, South Sudan. Afribary. Retrieved from https://afribary.com/works/microfinance-and-people-s-income-status-in-central-equatorial-state-a-case-study-of-juba-county-south-sudan
BUTRUS, OLWENY "Microfinance And People’s Income Status In Central Equatorial State: A Case Study Of Juba County, South Sudan" Afribary. Afribary, 11 Jun. 2021, https://afribary.com/works/microfinance-and-people-s-income-status-in-central-equatorial-state-a-case-study-of-juba-county-south-sudan. Accessed 19 Oct. 2021.
BUTRUS, OLWENY . "Microfinance And People’s Income Status In Central Equatorial State: A Case Study Of Juba County, South Sudan". Afribary, Afribary, 11 Jun. 2021. Web. 19 Oct. 2021. < https://afribary.com/works/microfinance-and-people-s-income-status-in-central-equatorial-state-a-case-study-of-juba-county-south-sudan >.
BUTRUS, OLWENY . "Microfinance And People’s Income Status In Central Equatorial State: A Case Study Of Juba County, South Sudan" Afribary (2021). Accessed October 19, 2021. https://afribary.com/works/microfinance-and-people-s-income-status-in-central-equatorial-state-a-case-study-of-juba-county-south-sudan