Research proposal

CHAPTER FOUR

4.1.1 Age of respondents

In order to attest the credibility of the responses, the respondents were asked to indicate their age bracket and the response was shown below.

Table 4. 1 Age of respondents

age frequency
20-295
30-397
40-493
50-596
60 and above4
total 25

Source: Survey Study (2014)

The table above shows that 5 of the respondents were in the age group of 20-29,7in the age group of 30-39, 3 between 40-49, 24% between 50-59 and 4 were in the age group of above 60 years. This implies that the majority of the respondents are between 30-39 years of age an indication that they can make independent decisions.

4.1.2 Gender of the respondents

This seeks to establish gender balance in the study.

The table below clearly indicates what the researcher found out concerning the gender of the respondents in Kireka town.

 

Table 4. 2  Gender of the respondents

Gender Frequency
Male15
Female10
Total 25

Table 4.2 above shows that the male gender dominated the study more than their counterparts the women.

The study population was selected in a way that avoid gender bias. As illustrated in the table 4.2, 15 of the respondents were male while 10 were female. This indicated that most of the respondents were male.

Table 4. 3 the number of years respondents have

Category Frequency
1-5 years5
6-10 years20
Total 25

Source primary data

Table 4.3 above shows that 20 of the respondents have worked at Kireka market for long this indicates that the researcher got information from experienced people.

 

Table 4. 4 The use of Micro finance services by businesses in Kireka Market

Nature of business Number of respondents
Yes20
No5
Total 25

Source: primary data

From the table above we observe that most of the respondents use micro finance services by a majority of 20 respondents. This implies that most of the respondents use need microfinance services to support the growth of their businesses.

 

4.2 Services offered by micro finance services

4.4.1 How has micro finance Institutions helped businesses in Kireka

Table 4. 5 How micro finance Institutions helped your business

Causes umber of respondents
Very well6
well4
Average10
Very poorly1

Source: primary data

Table 4.5 shows that the variations in the microfinance services have an averagely helped the people working in kireka market to improve their businesses as pointed out by 10 respondents. The micro finance institutions significantly helped businesses in Kireka market as evidenced by 6 respondents say they help them very well and 4 of them agreeing that well.

Table 4. 6 Services offered by micro-finance services.

servicesNumber of respondents
Savings and credit services18
Marketing and technology services4
Business training2
production training1

 

According to the table above the most offered service by microfinance institutions to Kireka Market business men is savings and credit service as proposed by 18 of the respondents followed by marketing and technology services with 4 respondents. This indicates that most businesses in Kireka Market operate are operating using credit and saving services rendered to them by micro finance institutions.

 

Table 4. 7 Whether businesses men women finance business using microfinance services.

 servicesNumber of respondents
Rarely–
Rarely –
Not at all –
Very regularly5
regularly20

According to the table above, most of the respondents regularly finance their businesses using microfinance services as 20 respondents accepted that they do while 5 of them said they use it very regularly. This implies that most businessmen and women in Kireka Market run their businesses using micro- finance institution services.

 

4.2 Establishing the growth of SMES

Table 4. 8 Establishing the growth of SMEs

The growth of SMEsResponse
No. and %ageSA 

A

N 

D

SDTotal
Potential clients perceive small business as lacking the ability to provide quality service.No.151000025
%age6040000100
There are many small scale stand business enterprises being set up at Kireka market.No.18700025
%age7228000100
There is steady growth of small scale business enterprises at Kireka marketNo.22300025
%age8812000100
Small scale Business Enterprises can finance their  loans due with the current  interest ratesNo.10537025
%age402018280100
Small scale business fails to make enough profits as a result of inadequate capital employedNo.1375 0 
%age52282000100

From table 4.2.1 above, findings revealed that, 60% of respondents strongly agreed that Potential clients perceive small business as lacking the ability to provide quality service while 40% of the respondents agreed and no one was neutral or disagreed. This indicates that most micro finance institutions only lends to capable business men who are able to pay back the money.

According to the table 72% of the respondents strongly agreed that there are many small scale stand business enterprises being set up at Kireka market while 28% of them agreed. This implies that there is potential for the growth of micro finance institutions with the growing number of fresh businesses that are being set up.

.According to the table above, 88 % of the respondents strongly there is steady growth of small scale business enterprises at Kireka market while 12% of them agreed. This is as a result of the ever growing number of new businesses being set up at kireka market.

From the table 40% of respondents strongly agreed that Small scale Business Enterprises can finance their  loans due with the current  interest rates while 20% agreed, 18% were neutral and 28% disagreed which implies that a significant number of businesses in Kireka are able to finance their loans

The table above indicates that 52% of respondents strongly agreed that Small scale business fails to make enough profits as a result of inadequate capital employed hollowed by 20% agreeing and 28% were neutral. This implies that there is more need for micro-finance institutions with in the areas of Kireka to finance these businesses.

 

 

 

 

 

 

 

 

 

4.3 Relationship between MFI’S activities and growth of small enterprises

Table 4. 9 Relationship between MFI’S activities and growth of small enterprises

Relationship between MFI’S activities and growth of small enterprisesResponse
No. and %ageSA 

A

N 

D

SDTotal
There is a relationship between MFIs and the growth of SSBEs at Kireka MarketNo18700025
%age7228000100
There is high interest rates on loans offered by micro-finance institutionNo22300025
%age8812000100
Microfinance institutions train business owners about loan management and business management techniquesNo131200025
%age5248000100
Small scale business owners have training and skills in business management.No08001725
%age0320068100

Table above reveals that there is a relationship between MFIs and the growth of SSBEs at Kireka Market as evidencd by 72% of respondents who strongly agreed while 28% of them agreed. This implies that micro finance services are essential for the growth of businesses in Kireka market

The table further indicates that majority of the respondents strongly and agreed that there is high interest rates on loans offered by micro-finance institutions where 88% of respondents strongly agreed and 12% of them agreed. This implies that micro finance institutions should reduce on their interest rates in order to help businesses grow and attract new investments

According to table above, 52% of the respondents strongly agreed that Microfinance institutions train business owners about loan management and business management techniques at kireka market while 48% of the respondents agreed.

According to researchers’ findings, 68% of the respondents strongly disagreed that Small scale business owners have training and skills in business management while 32% disagreed. This implies that most of the businessmen and women in kireka are not skilled in running business and need to be trained.

Chi-square test for validity

Test Statistics
 data if valid
Chi-Square3.600a
df1
Asymp. Sig.0.7
a. 0 cells (0.0%) have expected frequencies less than 5. The minimum expected cell frequency is 5.0.

 

According to the table the asymp. Significance is 0.7 indicating that the questionnaires were valid. Therefore the researcher asked questions that were related to the topic and were relevant to the study.

 

 

 

 

 

 

 

 

 

CHAPTER FIVE

SUMMARY, DISCUSSION, CONCLUSION AND RECOMMENDATIONS

5.0 Introduction

This chapter covers the summary of the findings, conclusions based on the findings and recommendations based on the conclusions.

5.1 Summary of Findings

The study sought to establish the impact of micro finance services on the growth of small scale enterprises in Uganda. The findings of the study showed that most of the respondents use micro finance services by a majority however it was noticed that Kireka Market was dominated by more businessmen than women. It also found out that most of the respondents were male. The findings reveled that most of them had worked in kireka market for more than 6 years and they were mostly between the ages of 30 to 39 years of age. Furthermore it revealed that most of the businessmen and women in Kreka Market use microfinance services in one way or the other and the number was 80%of them.

5.1.1 Services offered by micro finance services

About whether MFIs have helped businesses in Kireka the finding shows that the variations in the microfinance services have averagely helped the people working in kireka market to improve their businesses. The micro finance institutions significantly help businesses in Kireka market as evidenced by 24% of respondents say they help them very well and 16% agreeing that well and on which particular service businessmen prefer was the saving and loan service. While the respondents said they regularly use microfinance services

5.1.2 Establishing the growth of SME’S

About the establishment of MFIs, the findings reveled that Potential clients perceive small business as lacking the ability to provide quality service by a majority of 80% while they also said that there are many small scale stand business enterprises being set up at Kireka market, there is steady growth of small scale business enterprises at Kireka market, small scale Business Enterprises can finance their  loans due with the current  interest rates and Small scale business fails to make enough profits as a result of inadequate capital employed.

5.1.3 Relationship between MFI’S activities and growth of small enterprises

According to the study there is a relationship between MFIs and the growth of SSBEs at Kireka Market as agreed by a Majority of respondents while there is high interest rates on loans offered by micro-finance institution but most respondents strongly disagreed that microfinance institutions train business owners about loan management and business management techniques neither do Small scale business owners have training and skills in business management.

5.2 Conclusion

The administration of small firms is in Kireka Market is done by low income earners without much capital to start these businesses and low experience in business management which makes these businesses fully reliable on micro finance services like the loan and savings services. This is due to the low benefit-cost ratio of administering small scale businesses’. Therefore creating successful small business requires a proper loan management training. The findings further indicate that there is need to strengthen the microfinance services because of the growing number small scale businesses being set up at kireka market.

5.3 Recommendations

The researcher made the following recommendations as a way of improving of the services rendered to the businessmen of Kireka market by microfinance institutions aimed at promoting the growth of small scale business.

Kireka Market business men and women should find a way of accessing micro finance services at a lower interest rate which they will manage to pay back and even borrow more.

The micro finance institutions should carry out business, loan and saving management training with the businessmen and women in kireka that will help them manage their finances properly and invest wisely.

 

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