The role of microfinance institutions on the performance of small scale businesses in Uganda:

Abstract

This study seeks to find out the relationship between Microfinance institutions and small scale businesses under the topic “the role of microfinance institutions on the performance of small scale businesses”. In Uganda today there seems to be an increase in business ventures in different areas which is as a result of Microfinance and this seeks evidence that is yet to be established by this study. This shall be evidenced by ways in which microfinance groups give a hand to small scale businesses, how these businesses use the services and the main objective which is to assess the impact of microfinance institutions on the performance of small scale businesses in Uganda as well as the specific objectives of the study which include; To establish the role of loans acquired from these financial institutions on the performance of small scale business, To find out the relationship between savings and small scale businesses’ performance, To investigate the role of training services to people on the performance of small scale businesses, To determine the role of interest rates on the performance of small scale businesses, To determine the role of interest rates on the performance of small scale businesses. The study based on businesses supported by Microfinance institutions hence establishing how they contribute positively to the growth of off farm businesses but need to do more to boost agricultural businesses. The majority of clients recently are women who are forming small groups in order to access credit services. This not only show how many businesses have developed but also the ways put in place to effect a change even when there are challenges faced in the process. The study also identifies the methodology used such as the questionnaires, observation and use of interview, then findings obtained from the field which were analysed using SPSS and the recommendations to the concerned parties. Generally, the study will therefore investigate the role of microfinance institutions on the performance of small scale businesses. The relationship is created in form of offering services like giving loans, banking services, and consultations by the interested parties in form of training