The Role Of Micro-Financial Institutions In Fighting Against Poverty In Mbale District. A Case Study Of Finca Uganda Limited And Finance Trust, Mbale.

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ABSTRACT

This report examines the roles of MFis fighting against poverty in Mbale district and it looks at

FINCA Uganda Ltd and Finance Trust as one of the MFis.

It defines poverty as the state in which income is insufficient to provide such basic necessities as

food, shelter, medical care and clothing; that in the essence, the poor people get less of

everything we consider important and necessary for a decent life.

The report also following the Uganda Micro Finance Dictionary 2009/10 defines MFis as

institutions which make a wide variety of financial services ranging from loan provision, a

mechanism for making payments, transferring of funds, insurance protection to keeping of

valuables of their customers or clients.

The study was carried out in Mbale district found in Eastern Uganda neighboured by Bukedea,

Sironko, Bududa, Manafwa, Tororo, Butalaja and Budaka districts.

The general objective of the study was to investigate the roles played by MFis in fighting against

poverty to the local communities ofMbale district.

The problem is stated as poverty among the people of Mbale district and its origin is traced far

years back when the MFis were not yet established in the district. This manifests itself in the

poor quality of life people live in because of getting less of basic necessities of life.

The review gives out roles like financing of economic or income generating activities of the

poor, linking micro credit or loans to education, provision of jobs, free business training, advise

protection against income shocks and corporate social responsibility. The materials for review

included textbooks, newspapers (New vision and daily monitor) reports and internet.

Data was collected through analysis of people of the sampled sub counties that is Busoba, Bukhiende, Bungokho, Nakaloke, Busiu and Wanale. It included interviewing key infom1ants

like directors, and other employees ofMFis, the youths aged between 17 and 31, the elderly aged 65 and above and also the PWDs. The sample size was 82 out of 100 of the research population; 30 youths, elderly 24, PDWs 12 and 16 employees. All these respondents gave primary data through questionnaires, interviews and observation methods.

The findings revealed that loan lending, provision of jobs, free business training, advise, access to savings, protection of income shocks and corporate social responsibility contribute significantly in fighting against poverty by leading to creation of own business, payment for fees, earning a salary for a comfortable life, gaining knowledge for income generating activities and above all get access to clothings, shelter, food and medical care. This has led to a reduction in poverty level with 75.6% respondents revealing it. (Hence the relationship between the roles of MFis and poverty gives a perfect positive correlation 1.0 using inferential statistics).

The study concludes that the roles of MFis play a great role in reducing poverty levels in the district and it recommends that there should be a clear way of government intervention, good planning and delivery of services intended for the poor and above all there must be a purpose for borrowing money from MFis by the poor people than just for home consumption.

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APA

SSA, R (2021). The Role Of Micro-Financial Institutions In Fighting Against Poverty In Mbale District. A Case Study Of Finca Uganda Limited And Finance Trust, Mbale.. Afribary.com: Retrieved June 24, 2021, from https://afribary.com/works/the-role-of-micro-financial-institutions-in-fighting-against-poverty-in-mbale-district-a-case-study-of-finca-uganda-limited-and-finance-trust-mbale

MLA 8th

Research, SSA. "The Role Of Micro-Financial Institutions In Fighting Against Poverty In Mbale District. A Case Study Of Finca Uganda Limited And Finance Trust, Mbale." Afribary.com. Afribary.com, 04 Jun. 2021, https://afribary.com/works/the-role-of-micro-financial-institutions-in-fighting-against-poverty-in-mbale-district-a-case-study-of-finca-uganda-limited-and-finance-trust-mbale . Accessed 24 Jun. 2021.

MLA7

Research, SSA. "The Role Of Micro-Financial Institutions In Fighting Against Poverty In Mbale District. A Case Study Of Finca Uganda Limited And Finance Trust, Mbale.". Afribary.com, Afribary.com, 04 Jun. 2021. Web. 24 Jun. 2021. < https://afribary.com/works/the-role-of-micro-financial-institutions-in-fighting-against-poverty-in-mbale-district-a-case-study-of-finca-uganda-limited-and-finance-trust-mbale >.

Chicago

Research, SSA. "The Role Of Micro-Financial Institutions In Fighting Against Poverty In Mbale District. A Case Study Of Finca Uganda Limited And Finance Trust, Mbale." Afribary.com (2021). Accessed June 24, 2021. https://afribary.com/works/the-role-of-micro-financial-institutions-in-fighting-against-poverty-in-mbale-district-a-case-study-of-finca-uganda-limited-and-finance-trust-mbale