The effects of group lending on the performance of women enterprises in Nyendo Ssenyange division Nyendo market

Abstract

The study ‘‘Effects of group lending on the performance of women enterprises in Nyendo Ssenyange division Nyendo market’ was assessed in 2018. This was done to throw more light on the factors affecting group lending on the performance women enterprises in Nyendo market. The study had three objectives: To find out the effect of joint liability on performance of women enterprise in Nyendo market, To analyze the effect of group monitoring on performance of women enterprise in Nyendo market, To find out the effect of step/progressive lending on performance of women enterprise in Nyendo market. This study used both primary and secondary data. Primary data was collected using questionnaires which were administered using drop and pick later method while secondary data was obtained from women enterprise plans, newspapers, electronic journals and other internet sources. Data was analyzed using descriptive statistics and represented by measures of central tendency, that is mean and standard deviation. Descriptive statistics such as mean and standard deviation were used to measure effect of group lending on performance of women enterprises. The information was then presented by use of tables, bar charts, graphs and pie charts. The study found out that most of women enterprises in Nyendo market rely on funds from group lending to operate and that borrowers organized in groups were more likely to be productive and repay their loans than their counterparts in individual lending. It also found that women enterprises faced the challenges of high taxes imposed on their businesses, seasonal changes those dealing in vegetable businesses and competition. In conclusion, findings revealed that group lending affect the performance of women enterprises most respondents cited that joint liability/group lending affect on the performance of their enterprises and they agree with Harvard Theory School forces (Coleman, 2002). Because internal qualities of the individual such as intelligence, skill, knowledge and experience from group members are shared among the member groups. Results further show that the respondents established that Interest rates to the group lending are too low than for individual borrowing, according to one of the respondent said that ’’Brac Uganda’s interest rates on groups are 10% and those of individual loan of small enterprises program (SEP) 25% a year”