Microcredit as a strategy for poverty alleviation among women entrepreneurs in Masaka district:

Abstract

The study explored the efficiency of microcredit as a strategy for poverty reduction especially among women in Masaka Municipality, Kimaanya-Kyabakuza Division. The objectives of the study were: to assess the economic activities done by women in Kimaanya- Kyabakuza, to establish the impact of micro credit on the live hood of women entrepreneurs in Kimaanya-Kyabakuza Division, to explore how the beneficiaries sustain their improved living condition without further credit support. The study used both qualitative and quantitative methods in collection, analysis and presentation of the research findings. The study sample was 60 respondents, random and purposive sampling techniques were used. The findings of the study revealed that majority of women entrepreneurs Kimaanya-Kyabakuza fall in the 20-50 age brackets, borrow below 200,000 and have little education. They are driven more by necessity than opportunity which is not the case for most of the other developing economies where the reverse holds. Findings also revealed that most of women enterprises are in the informal sector and they get access to micro credit with difficulty. The findings also revealed that there is a positive relationship between micro credit and the improved living conditions of women in the area, this was evidenced by diversification of income sources and increased households assets. The study also revealed that there re a number of people who put the loan funds to some other personal purpose because of the dependents and this as one of the reasons as to why some have not accelerated improved living conditions. The researcher recommended the offering of entrepreneurial training to women so as to increase on their productivity. The researcher also recommended the proper record keeping methods be used to ease accountability and monitoring of clients business by micro credit institutions to ensure that the micro credits are not channeled to other thing that may not be productive.