TABLE OF CONTENTS
DECLARATION
APPROVAL I
DEDICATION
ACKNOWLEDGMENT iv
TABLE OF CONTENTS v
LIST OF TABLES vni
LIST OF FIGURES ix
ABBREVIATIONS AND ACRONYMS x
ABSTRACT
C~A~TE~ ONE,,o,~,,,,,a,,ouu,,uo,,,,,,nu,o,,,,n,,,,,nu,,n,u,,u,,.,,,,,,,.,,,,.,,,,,,,.,.,,,,,, 1.
1.0 Introduction 1
1.1 Background of the study 1
1.2 Statement of the Problem 4
1.3 Purpose of the study 5
1.4 The objectives of the study 5
1.5 Research Questions 5
1.6 The Scope of the study 5
1.6.1 Geographical scope 5
1.6.2 Content scope 6
1.6.3 Time scope 6
1.7 Significance of the Study 6
1.8 : The conceptual framework of the study 7
ChAPTER
LITERATURE REVIEWun,,,,,u,,,,.,u,nu,,a
2.0 Introduction 8
2.1 Definition of Terms 8
2.2 Review of the related literature 9
2.2.1 The role played by microfinance institutions 9
2.2.2 The level of business performance in Uganda 10
V
CHAPTER THREE ...................“....~.14
METHODOLOGY ~14
3.0 Introduction~14
3.1 Research Design~14
3.2 Research Population~14
3.3 Sample size~14
3.4 Sampling technique 15
3.5 The Research Instrument 15
3.6 Methods of Data collection/Data collection Procedure 15
3.7 Data Analysis 15
C~1AP1ER FOUR aaaaaaaaaacaanaaaaaaaaanaauaaau,,aaa,n,,aaaa,,,,,.a,,,,,.,00,.a,,,saaa.a,,,.,..a,ta.,,eau 1.6
DATA PRESENTATION ANLYSIS AND INTERPRETATION ~16
4.0 Introduction 16
4.1 Age of respondents 16
4.1.1 Gender of respondents 16
4.1.2 Level of education of respondents in Nakawa Division 17
4.1.3 Number of years in business for the respondents 17
4.2 The level of growth of Microfinance Institutions in Nakawa Division 17
4.3 The level of business performance In Nakawa division 19
4.4 The effects of Microfinances on business performance in Nakawa Division 20
4.4.1 Does the loan help you to acquire sufficient inventory and increase your
business asset 20
4.4.2 Are you always able to purchase the required equipment for your business
operations from the loans 20
4.4.3 What are the levels of sales volume in your business 21
4.4.4 How would you rate the significance of the loans provided to your
business performance 22
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DISCUSSIONS, CONLUSIONS AND RECOMMENDATIONS a’aaaaa,a,,,,aa,,,,ua,,, 23
5.0 Introduction 23
vi
5.1 Discussion of key research findings 23
5.1.1 Findings on biodata of the respondents collected in Nakawa Division
Kampala District 23
5.1.2 The level of growth of Microfinance Institutions in Nakawa DivisionKampala 23
5.1.3 The effects of microfinance on business performance in Nakawa division
Kampala district 24
5.2 Conclusions 25
5.3 Recommendation 25
5.4 Limitations of the study 25
5.5 Areas for further research 26
REFERENCES 27
APPENDICES 29
APPENDIX I: RESEARCH INSTRUMENT 29
APPENDIX II: RESEARCH BUDGET 33
APPENDIX III: RESEARCH TIME FRAME 34
ABSTRACT The topic of the study was Contributions of Microfinance institutions on Business Performance in Nakawa Division-Kampala Uganda: The study investigated performance of business as a major problem following the high collapse of business due to non-performing loans from financial institutions. The objectives of the study included: determination of the role played by microfinance institutions in Nakawa division; determination of the level of business performance in Nakawa Division, and to establish the effects of microfinance institutions on business performance in Nakawa Division. This research used the mixed approach by applying both quantitative, and qualitative research designs to enable the researcher and other future scholars have a deeper understanding of the of the problem and create more innovative solutions for the performance of business. Specifically, the designs consisted of descriptive co-relational design and cross-sectional design. The findings of the research study were that in Nakawa division, the age bracket for people with businesses ranges between 41-50 years representing the highest percent of 48 out of the total sample population with majority percent of being females representing 57 percent, however education level indicated a shrinking level with secondary education being the highest level attained by respondents representing 37 percent. To make a comprehensive examination, it was also important to find out the distribution of respondents of number of years in doing business and the study found out most of the businesses lasted between 3-5 years representing 46 percent. The findings on the level of growth of microfinance institutions in Nakawa Division indicated an overall mean of 2.29 implying that respondents were satisfied with the level of growth of these microfinance institutions indicators, in addition on the level of business performance, the overall mean was also satisfactory at 2.45 as the study was concerned. And lastly the effects of microfinance institutions on business performance revealed 70 percent according respondents as far as the sufficiency of the loans was and making them purchase the required equipment at 53 percent hence making a sales volume to stand at high rate of 55 percent according to the study. The researcher recommended to microfinance institutions to always not only provide loans but also supplement it with other services in order to enhance business performance in Nakawa Division.
