TABLE OF CONTENTS

DECLARATION

APPROVAL ii

DEDICATION iii

ACKNOWLEDGEMENT iv

TABLE OF CONTENTS v

LIST OF TABLES viii

LISTS OF ABBREVIATIONS AND ACRONYMS ix

ABSTRACT x

CHAPTER ONE 1

INTRODUCTION 1

1.0 Introduction I

1.1 Background to the study I

1.1.1 Historical Perspective 1

1.1.2 Theoretical Perspective 3

1.1.3 Conceptual perspective 4

1.1.4 Contextual perspective 4

1.2 Statement ofthe problem 4

1.3 Purpose of the study 6

1.4 Specific Objectives ofthe Study 6

1.5 Research Questions 6

1.7 Scope ofthe study 6

1.7.1 Geographical Scope 6

1.7.2 Content Scope 7

1.7.3 Time Scope 7

1.8 Significance ofthe Study 7

1.9 Operation definition ofKey terms 7

CHAPTER TWO 9

LITERATURE REVIEW 9

2.0 Introduction 9

2.1 Theoretical Review 9

V

2. 1. 1 Empowerment theory . 9

2. 1 .2 Participatory development approach 9

2.2. Conceptual Review 10

2.2.1. Conceptual Framework 10

2.3 Related Literature 11

2.3.1 Determining the level of youth empowerment In Uganda 11

2.3.2 Performance ofmicrofinance institutions 12

2.3.3 Role ofmicrofinance institutions on youth empowerment 14

2.4 Empirical Review 16

2.5 Research Gaps 18

CHAPTER THREE 19

METHODOLOGY 19

3.0 Introduction 19

3.1 Research Design 19

3.2 Population ofthe study 19

3.3 Sampling techniques and Sample Size 20

3.3.1 Sample size 20

3.3.2 Sampling Techniques and Procedures 20

3.4 Data Collection Method 20

3.4.1 Primary Sources 21

3.4.2 Secondary Sources 21

3.4.3 Data Collection Instrument 21

3.5 Reliability and Validity ofthe Instruments 21

3.6 Data Processing and Analysis 22

3.7 Ethical Considerations ofthe Study 22

3.8 Anticipated Limitations 32

CHAPTER FOUR 23

PRESENTATION, DATA ANALYSIS AND INTERPRETATION OF FINDINGS

23

4.0 Introduction 23

4.1 Demographic characteristics ofrespondents 23

4.1.1 Age 23

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4.1.2 Age of respondents .24

4. 1.3 Level of education of respondents 24

4.1.4 Occupation of respondents 25

4.2 Level of youth empowerment in Kisoro District 25

4.4 Role of microfinance institutions on youth empowerment in Kisoro 28

4.4. Determining the Relationship between microfinance institutions and youth

empowerment in Kisoro District 29

4.5 Regression analysis 29

CHAPTER FIVE 30

DISCUSSIONS, CONCLUSIONS AND RECOMMENDATIONS 30

5.0 Introduction 30

5.1 Discussion ofthe findings 30

5.1.1: Level ofyouth empowerment in Kisoro District 30

5.1.2 Level ofperformance ofMicrofinance institutions in Kisoro District 30

5.1.3 Role ofmicrofinance institutions on youth empowerment in Kisoro 31

5.1.4 Relationship between microfinance institutions and youth empowerment in Kisoro

District 31

5.2 Conclusions to the study 31

5.2.1: Level of youth empowerment in Kisoro District 31

5.2.2 Level ofperformance ofMicrofinance institutions in Kisoro District 31

5.1.3 Role ofmicrofinance institutions on youth empowerment in Kisoro District 31

5.3 Recommendations 32

5.3.1: Level of youth empowerment in Kisoro District 32

5.3.2 Level ofperformance ofMFIs in Kisoro District 32

5.3.3 Role ofmicrofinance institutions on youth empowerment in Kisoro District 32

REFERENCES 33

APPENDIX I: Questionnaire 38

APPENDIX II: Time Framework 42

APENDIX III: Estimated budget; 43

VI I

ABSTRACT

The purpose of this study was to explore the role of micro finance institutions in promoting youth empowerment in rural areas the specifIc objectives were to investigate the level of youth empowerment in Kisoro district, to establish the level of performance of microfinance institutions in Kisoro district and to determine the roles of microfinance institutions in promoting youth empowerment Kisoro district. The Study used a survey research design and data was collected from 80 respondents. The findings of the study revealed that youth empowerment has improved as respondents agreed to the most of the statements used to measure this objective except that it was found out that the process of acquiring a youth loan for empowerment is not easy. The findings of the study also revealed that the performance of MFIs in Kisoro district has increased except that the lending policies are still poor. The findings of the study revealed that MFIs play an important role in youth empowerment and it was found out that microfinance institutions do not give grace periods to the youth as this affects their level of business establishment. The findings also revealed that there is a strong positive relationship between microfinance institutions and youth empowerment as it was found out that an improvement in microfinance services improves youth empowerment by 85%.The study recommended that microfinance institutions should simplify the process of loan acquisition, microfinance institutions should improve on their lending policies in order to attract new customers and improve their performance in general and that microfinance institutions should always give grace periods to the youth upon acquiring a loan for business start up.