Microfinance and development of small scale businesses: Case study market street.

Abstract

The study aimed at assessing the role of micro finance institutions on the development of markets, case study being Market Street in Kampala and Pride Micro Finance Institution. The study was mainly looking at micro finance and development of small scale business and how these have helped the business owners to develop their businesses . The researcher used a cross sectional research design with both qualitative and quantitative methods with a population study of 100 people out of which a sample size of 50 clients and employees of the micro finance was chosen. Using simple random sampling respondents were chosen along market Street. Both the primary and secondary data was used during collection of dat by use of questioners, interview guides and observation methods and analyzed in form of tables, graphs and pie charts. Findings revealed that savings is a condition for credit as indicated by all 50 respondents. It was also discovered that the credit facilities given to the clients are favorable and these have helped the clients to expand on their businesses. The loans given carry a 17% interest rate which the clients indicated was normal. It was also revealed to the researcher that training is also offered to the clients of the micro finance but this is not done frequently. The Micro finance should introduce frequent training facilities to their customers because this would help the clients to participate in the other services being offered like group loans. They should also introduce new saving packages like long term savings for their customers who are not in a hurry to use their money. Finally the researcher recommends that the micro finance should give its clients bigger sums of money in form of loans.