The role of microfinance on entrepreneurship among women in Kampala district

Abstract

The study examined the role of micro finance on entrepreneurship among women in Kampala district a case study of Pride Micro Finance LTD, Bukoto in Uganda. It was guided by three research objectives which were; Micro credit on entrepreneurship among women, micro savings entrepreneurship among women and micro insurance entrepreneurship among women as provided by micro finance institutions. The study used a cross sectional survey design with both qualitative and quantitative results. Data was collected using questionnaires and interviews using SPSS version 16. This study aimed at women clients where 103 respondents were interviewed, 23 being staff, 30 being past clients and 50 being present clients, all women of Pride Microfinance Ltd. In data analysis frequencies, percentages and mean, standard deviation and correlations were used to show the magnitude of effect the independent variables have on the dependent variable. Study findings revealed that micro credit have a positive significant relationship on entrepreneurship among women (r=.651, p < 0.01). Findings also revealed that micro savings significantly affect entrepreneurship among women (r=.506, p < 0.01). Also it was found out that there is a positive significant relationship between micro insurance and entrepreneurship among women (r=.621, p < 0.01). It was therefore concluded that micro credit has helped women in carrying out businesses, micro savings has promoted the savings culture among women through encouraging them to open bank accounts with the institution and make monthly deposits and micro insurance has been affected by lack of knowledge about micro insurance by the women clients. It was therefore recommended that women clients should be trained thoroughly before undertaking credit facilities for enterprise use money for intended purpose only and avoid money misuse and diversion of funds