Effect of Microfinance Services on the Growth of Small Medium Entreprises Case Study: Nateete Market

Abstract

The study investigated the effect of micro finance services on the growth of small medium enterprises in Nateete market as the case study. To guide the study, following objectives were adopted; to examine the effect of savings mobilization on the growth of small medium enterprise, to find out the effect of micro edit services the growth of small medium enterprise, to establish the role of business development services on the on growth of small medium enterprise

The study used both descriptive and quantitative methods of research were used during the process of data collection. A case study of Natete Market in Rubaga Division was adopted where total respondents of 44 market vendors were examined. The sample size was obtained using the Morgan Krejice table. The study used self-determined questionnaires as an instrument for data collection. Data was collected from both primary and secondary sources with the help of questionnaires designed using Likert scale of 1 to 5 where; strongly Agree 1 (SA), Agree 2 (A), Not sure 3 (NT), Disagree 4 (D), and strongly disagree 5(SD).

The study revealed that for the last two years business owners have saved with MFIs, they have been able to use savings made to re- invest in their business. The field data collected indicated that for the last two years they have saved with MFIs has helped them to acquire new technology in their businesses. The findings indicated that Business owners have been able to get the savings they had in MFI to expand their business.

The study concludes that Business owners have been able to acquire knowledge given by MFIs since they opened accounts which made them to increase the number of employees and have been able to get negotiation skills from MFIs for the period they have been borrowing loans which helped them to increase their sales returns.

The study recommends that business owners should continue to save more with MFIs to be able to use savings made to re- invest in their business. This shall help business owners to have more capital to invest in their businesses. The study recommends that Business owners should be taught on the benefits of good market positioning since they acquire loans with MFIs. This shall enable business owners to increase sales return in their businesses

Login to download()