The contribution of microfinance services to the economic development of the people of Kampala Archdiocese

Abstract

The main purpose of this research was to examine the contribution of microfinance services to the economic development of the people. The study was based on the research conducted in Kisubi Parish as the case study. It was based on three specific objectives which included: To examine how the training in microfinance services contributes to economic development, to examine how loans accessed and utilized by the people have contributed to their economic development and also to assess how savings in microfinance institutions can contribute to economic development. The researcher used a case study for conducting the research and the nature of the research was cross sectional. In collecting data the researcher used primary and secondary sources of data. The tool used to collect data was a questionnaire and for data analysis the researcher used SPSS 16 to analyze the data. In the findings, the research revealed that training has a negative effect of economic development, loan access and utilization has a positive effect on economic development though not very significant and that savings have a n effect on economics development. There is therefore a positive relationship between microfinance institutions and economic development of the people. The overall conclusion presented is that microfinance institutions contribute to the economic development of the people especially the poor. Key recommendations of the study are that training be regarded for clients and facilitated by the MFIs, reduce on the levels of bureaucracy, success stories of clients be published as evidence of importance of these MFIs and that clients be encouraged to save so as to benefits from returns on savings