The relationship between microfinance services and capital formation in women headed household in Uganda: case study of Uganda Finance Trust Limited Soroti branch (u-trust)

Abstract

This study sought to examine the relationship between microfinance services and household capital formation in women- headed households in Soroti district; the impact of micro finance on women’s empowerment in household level, looking at how the borrowed funds are utilized; and the socio-economic factors that have an impact on households’ benefits from the micro finance opportunities. The study is based on the hypothesis that women’s access to microfinance services such as credit, savings, insurance and training have helped households manage their exposure to risks and improve household management skills and abilities, assets formation like land and ploughs, increased household welfare, improved standard of living, saving and investments through women empowerment, hence facilitating the growth of capital formation at household level. The researcher has reviewed literature from other research studies to acquaint himself with what has been studied on the relationship between microfinance services and capital formation in poor households, the methodologies of their study, what was found and the gaps that would be of interest for other studies. The researcher has also discussed the methodology used in the study, which brought to light how the socio-economic factors that impinge on the rural people’s ability to improve on their household incomes were assessed, analyzed, and interpreted under each specific objective of the study. The researcher then presented the analysis of findings of the research with reference to the field finding already revealed by other researchers on the related subjects. The Statistical Package for Social Science (SPSS) was used to analyze the quantitative data collected, while qualitative data was also considered in interpreting the results in this study. The summary of findings, conclusions, and recommendations were based on the analysis and interpretation of the findings. The researcher even made suggestions for further studies on a related topic.