Effect of micro finance activities on the productivity of small-scale business in Kamuli Market, Kamuli District.

Abstract

The study was about the effect of microfinance activities on the productivity of small scale business in kamuli market, kamuli district, and the case study was pride microfinance Uganda limited in kamuli district the objectives of the study were the effect of loan scheme on the productivity of small scale business, effect of micro-credit on theproductivityof smallscale businessand effect of micro- insurance on productivity ofsmallscalebusiness A case study design was used to conduct the study with a sample size of 20 respondents from kamuli market in kamuli districtvarious data collection instruments were used in this study and these include; questionnaires and interview guide was given to the managers of pride microfinance in kamulidistrict and the questionnaire wasgiven to the respondents inkamulimarket mainly the business operatorsandowners from kamuli market. Thefindings revealed that majority of thebusinessownersandoperators in kamuli market respondedhighly towards themicro-credit services from the institution as compared to loan scheme and micro insurance. However,this has improvedon the productivityof smallscale business in kamuli market. The researcher recommends thatsmall scale business shouldbebetter organized and so that they shoulda collective mass which may prevail on the micro finance institutions, government should introduce motivation incentivesinsupport to small scale business owners and operators as well in kamuli district. Pride micro finance should engage itsself in manytypes of business such ashomebased business for instance,poultry andothers. Smallscalebusinessoperators andowners should widentheir market soastoreduce on the high competition. Smallscale business needs to employ professionals to manage their business. Government should involve draft policy framework for small scale business that focus mainly on the legal and regulatory conditions.