Role of Microfinance Institutions on the Promotion of Women Entrepreneurship in Uganda

Abstract

The presence of microfinance services for the poor have grown immensely since its beginning in the 1970s and it has become one of the most popular sought after poverty reducing strategies in the world. This study utilized cross-sectional study design and data was collected using a wellstructured close ended questionnaires from fifty (50) female clients of pride microfinance limited in Rubaga division in the capital Kampala. The questions were structured in English but administered in a local language (Luganda) to be specific. Both quantitative and qualitative data analysis techniques were employed. Finding indicated that majority of the bank clients had obtained loans and a sizeable number had also benefited from the training that pride microfinance provided to its clients such as book keeping, marketing, credit management and customer care services. By offering these services, Pride Microfinance helped to empower women economically by enabling them to transfer money, make payments, save money and get capital for running their businesses which are necessary requirements for entrepreneurship development. Clearly microfinance institutions (MFIs) have an enormous role to play in the economic empowerment of the women. The findings indicated that less education, inadequate training of borrowers resulted in default in loan repayment. The policy message here is that microfinance institutions should have simplified systems of operation that reduce delays, provide efficient and effective service delivery that are accessible and preferred by the women.