TABLE OF CONTENTS
DECLARATION
APPROVAL iii
DEDICATION iv
ACRONYMS v
ACKNOWLEDGEMENT vi
LIST OF TABLES x
LIST OF FIGURES xi
ABSTRACT xii
CHAPTER ONES 1
INTRODUCTION .1
1.0 Introduction 1
1.1 Background to the study 1
1.2 Statement of the problem 5
1.3 Purpose of the study 5
1.4 Specific objectives of the study 5
1.5 Research questions 5
1.6 Scope of the study 5
1.6.1 Geographical scope 5
1.6.2 Content scope 6
1.7 Significance 6
CHAPTER TWO 7
LITERATURE REVIEW 7
2.0 Introduction 7
2.1 Conceptual Framework 7
vu
2.1.1 The impact of group savings — DAT’s parallel strands 7
2.1.2 The view point of sustainable livelihoods framework 9
2.1.2.1 Vulnerability Context 9
2.1.2.2 Livelihood Assets 9
2.1.2.3 Transforming structures and processes 10
2.1.2.4 Livelihood strategies 10
2.1.2.5 Livelihood outcomes 10
2.1 .2.6Livelihood 10
2.2 Household welfare 11
2.2.1 Money — metric measures versus the asset — based approach 11
2.3 Review of Related Literature 12
CHAPTER THREE 22
METHODOLOGY 22
3.0 Introduction 22
3.1 Research design 22
3.2 Study Population and Area 22
3.3 Sample size 22
3.4 Sampling procedure 22
3.5 Research instruments 23
3.6 Validity of Instruments 23
3.7 Reliability of Instruments 23
3.8 Data Analysis 23
3.9 Ethical Consideration 24
VIM
CHAPTER FOUR .25
DATA PRESENTATION, ANALYSIS AND INTERPRETATION 25
4.0 Introduction 25
4.1 Demographic characteristics of respondent’s 25
4.3 Contribution of VSLAs in Busia Municipality 31
4.3.1 Access to loans by households 32
4.3.1 Insurance 34
4.3.1 Savings 35
4.3 Standard of living in Busia Municipality 37
4.3.1 Asset accumulation 38
4.3.1 Household Income 40
4.3.1 Reduced Vulnerability 41
4.3 Relationship between VSLAs and standard of living 42
CHAPTER FIVE 44
DISCUSSION, CONCLUSION AND RECOMMENDATIONS 44
5.0 Introduction 44
5.1 Discussion of findings 44
5.1.1 Contribution of VSLAs in Busia Municipality 44
5.1.1 Contribution of VSLAs on Standards of living in Busia Municipality 45
5.2 Conclusion 45
5.3 Recommendations 46
REFERENCES 47
APPENDIX I: INTRODUCTION LETTER 50
APPENDIX II: RESEARCH INSTRUMENT 51
APPENDIX III: CURRICULUM VITA 55
ABSTRACT The aim of the study was to establish the role of Village Savings and Loan Associations on standards of living in Busia Municipality in Eastern Uganda. The guiding objectives were; assessing the contribution of VSLAs, assessing the level of standard of living in Busia Municipality. It was quantitative in nature. The cross sectional and descriptive correlational designs were used. The objectives of the study were; To assess the contribution of VSLAs in Busia Municipality, To assess the level of standard of living in Busia Municipality and to find out the relationship between VSLAs and standard of living in Busia Municipality. Primary data was collected from a total of 80 households who were participants in VSLAs by simple random sampling. Comparisons were made among the participants in regard to households’ income, asset accumulation, and reduction in vulnerability. Analysis by use of means was adopted to assess the contribution of VSLAs in Busia Municipality and to assess the level of standard of living in Busia Municipality. Pearson’s correlation and regression statistics were used to analyse the relationship between VSLAs and Standard of living. On the contribution of VSLAs in Busia Municipality, the findings revealed that the contribution of VSLAs in terms of loans, insurance and saving is high. The findings were; On the level of standard of living in Busia Municipality, it was found out that; in terms of asset accumulation, the standard of living was high, in terms of household income the standard of living still remained high while in terms of reduced vulnerability, the standard of living was high. On the third objective of finding the relationship between VSLAs and Standard of living, statistics revealed that there is a strong positive relationship (0.855) between VSLAs and Standard of living. On the recommendations, the researcher therefore recommended that programs that aim at sensitizing the local people in Busia Municipality and the surrounding areas be initiated to encourage households join VSLAs. Government should encourage the development of VSLA in the municipality.
