The Role of Microfinance Services in Funding Small and Medium Enterprises in Uganda. A Case Study of Pride Microfinance Limited, Katwe Branch.

Table of Contents

DECLARATION

APPROVAL ii

DEDICATION iii

ACKNOWLEDGEMENT iv

TABLE OF CONTENTS v

LISTOFTABLES vii

LIST OF FIGURES viii

ABSTRACT ix

CHAPTER ONE 1

1 .ONTRODUCTION 1

1.1 BACKGROUND 1

1.2 STATEMENT OF THE PROBLEM 2

1.3 PURPOSE OF STUDY 3

1 .4OBJECTIVES OF THE STUDY 3

1.5RESEARCH QUESTIONS 4

1.6SIGNIFICANCE OF THE STUDY 4

1.7 SCOPE OF THE STUDY 5

CHAPTER TWO 7

2.0 Introduction 8

2.1 Procedures employed by Microfinance institutions to provide credit services to small scale

businesses 11

2.2 Benefits derived by small scale businesses from Microfinance institutions 16

Lease Financing 16

2,3 Challenges faced by small businesses in accessing and maintaining the loans 19

2.4 Conclusion 23

CHAPTER THREE 24

METHODOLOGY 24

3.1 Introduction 24

3.2 Research Design 24

3.3 Area of the study 24

V

3.3.1 S~dy pop~1ation . 24

3.4 Sampling procedure 25

Purposive sampling was used to select respondents who are knowledgeable about the services of

MFI’s and management of small businesses. Also, random sampling was employed to to remove

bias 25

3.5 Data sources 25

The study used both primary and secondary sources, with much emphasis on primary data 25

3.5.1 Primary data 25

3.5.2 Secondary data 25

Data was obtained from records of Pride Microfinance Limited - Katwe Branch, journals,

textbooks as well as Internet 25

3.6 Research instruments 25

3,7 Validity and Reliability of instruments 25

3.8 Data analysis and processing 25

CHAPTER FOUR 27

PRESENTATION, INTERPRETATION, ANALYSIS, AND DISCUSSION OF FNDINGS27

4.0 iNTRODUCTION 27

4.1 Discussions of Findings 27

4.2 Credit procedures used by Microfinance Institutions 29

4.3 Benefits of Financial institutions to businesses 32

CHAPTER FIVE 35

SUMMARY DISCUSSION OF FINDINGS, CONCLUSION AND RECOMMENDATION .. 35

5.1 Introduction 35

5.2 Summary of the findings of the study with respect to study objectives 35

5.2.1 Procedures Microfinance Institutions use to provide credit 35

5.2.2 Benefits derived from Microfinance Institutions 36

5.3 Conclusions of the study 37

5.4 Recommendation 38

The government should encourage investors to set up more microfinance institutions in rural

areas so as to bring financial services nearer to small businesses 38

REFERENCES 40

APPENDICES 36