TABLE OF CONTENTS
DECLARATION
APPROVAL
DEDICATION iii
ACKNOWLEDGEMENTS iv
LIST OF FIGURES viii
LIST OF ACRONYMS ix
ABSTRACT
CHAPTER ONE 1
INTRODUCTION 1
1.0 Introduction 1
1.1 Background to the study 1
1.1.1 Historical Perspective 1
1.1.2 Theoretical Perspective 3
1.1.3 Conceptual Perspective 3
1.1.4 Contextual perspective 4
1.2 Statement of the problem 5
1.3 Purpose of the Study 6
Objectives of the study 6
1.5 Research Questions 6
1.6 Research Hypothesis 6
1.7 Scope of the study 7
1.7.1 Geographical Scope 7
1.7.2 Subject Scope 7
1.7.3 Time Scope 7
1.8 Significance of the study 7
1.9 Operational definitions of Key terms 8
CHAPTER TWO 9
LITERATURE REVIEW 9
2.0 Introduction 9
2.1 Theoretical Review 9
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2.2 Conceptual Review .11
2.3 Review of rela~ed Literature 11
2.3.1 Effect of microcredit on poverty alleviation 11
2.3.2 Effect of microfinance savings on Poverty alleviation 13
2.3.3 Effect of Microfinance social services on Poverty alleviation 15
2.4 Empirical Review (Relationship between Microfiannce and Poverty Alleviation 16
2.5 Research Gap 18
CHAPTER THREE 19
METHODOLOGY 19
3.0 Introduction 19
3.1 Research Design 19
3.2 Study Population 19
3.2.2 Sample Size 19
3.2.3 Sampling Procedure 20
3.4 Data collection Instrument 20
3.4.1 Questionnaire 20
3.5.1 Validity of the research instrument 21
3.5.2 Reliability of the research Instrument 21
3.6 Ethical considerations 21
3.7 Data Processing and Analysis 22
3.8 Limitation of the Study 22
CHAPTER FOUR 23
PRESENTATION, ANALYSIS AND INTERPRETATION OF RESULTS 23
4.Olntroduction 23
4.1 Profile of respondents 23
4.1.1 Findings on Gender of respondents 23
4.1.1 Findings on Gender of respondents 23
4.1.2 Findings on Age categories of respondents 24
4.1.3 Findings on educational qualifications ofrespondents 24
4.1.4 Findings on Marital status ofrespondents 25
4.2 Microfinance Institutions 26
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4.2.1 Effect of microcredit on Poverty alleviation in Mbarara Municipality 26
4.2.1 Micro credit services in Mbarara Municipality 26
4.2.3 Poverty alleviation in Mbarara Municipality 28
4.2.3 Regression (effect of microcredit on poverty alleviation in Mbarara Municipality) 31
4.3 Effect of Microfinance Savings on poverty alleviation in Mbarara Municipality 32
4.3.2 Regression (Effect of microfinance savings on poverty alleviation in Mbarara
Municipality) 34
4.4 Effect of microfinance social services on poverty alleviation in Mbarara MuniCipality 35
4.4.1 Level of Microfinance social services in poverty alleviation in Mbarara Municipality...35
4.4.2 Regression (Microfinance social services and poverty alleviation in Mbarara
Municipality 37
CHAPTER FIVE 39
DISCUSSION, CONCLUSIONS AND RECOMMENDATIONS 39
5.0 Introduction 39
5.1 Discussion of the findings 39
5.2 Conclusions 40
5.3 Recommendations 41
5.4 Contributions to existing knowledge 41
5.5 Areas for further research 42
REFERENCES 43
Appendix ii: Time frame for the study 52
Appendix iii: Research Budget 53
ABSTRACT The purpose of the study was to establish the relationship between microfinance services and poverty reduction in Mbarara Municz~ality. The objectives included to examine the effect of microcredit on poverty reduction, to determine the effect of microfinance savings on poverty reduction and establish the effect of microfinance social services on poverty reduction in Mbarara Municipality Somalia. The study was based on selected microfinance institutions in Mbarara Municipality Uganda plus some selected respondents from Mbarara Municipality. The study employed a descrz~tive research design and majorly quantitative. The descrzptive design was selected in this study because it allows the researcher to gather numerical data. The data was collected from the employees of the selected banks and customers. The data was collected through the research questionnaires from 80 respondents. The findings on the first objective provided that microcredit had a 25.5% effect on the poverty reduction in Mbarara Municipality. Regarding the effect that microjmnance saving services have on poverty reduction, findings suggested a positive effect. The summarized regression results are clearly indicative of the fact that proper microfinance help in improving the odds of poverty reduction. On the second objective, microfinance saving had a 31.8% effect on the poverty reduction in Mbarara Municipality. The R-Squared coefficient denotes a low amount of influence that savings services have on poverty reduction while the third objective microfinance social services had no influence on poverty reduction. The study conclude that microcredit services affect the poverty reduction, the study conclude that microcredit improvement contribute to poverty reduction in Mbarara Municipality. The study further conclude that microfinance savings services contribute to poverty reduction meaning that to improve the poverty reduction there is need to enhance the savings for the microfinance. The third objective conclude that microfinance services exist though not effective in providing the mechanisms for the poverty reduction, it therefore requires a concentration and much focus on the microfinance environment to attain poverty reduction. The study recommend for the need to improve the microfinance loans provisions in terms providing to all the people on fair terms at lower interest rates and accessible to the people in order to improve business environment. The improved access to microcredit will enhance the business development a mechanism that will stimulate business growth and development. On the second objective, there is needfor improved savings lead to investments especially in SMEs that can provide a mechanism for business growth and development mix.
