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The Contribution of Microfinance Institutions on Household Welfare in Masaka Municipality: a Case Study of Katwe-Butego Sub-County

Course: Bachelor of Business Administration and Management
Year: 2017
Author: Aremi Evalyn
Supervisor: Anthony Agume Kabisyaki

Abstract

The main objective of the study was to scrutinize the relationship between microfinance institutions and household welfare in Katwe – Butego – Division in Masaka Municipality which was got from the topic of “The contribution of Microfinance institutions on household welfare.
Out of the total population of 3548(three thousand five hundred forty eight) households in this Division, the researcher used a sample of 316(three hundred sixteen) households.
The study based majorly on primary data which was got through use of structured questionnaires and interview guides and then data collected was analyzed using statistical package. Multiple regression analysis was used to establish the relationship between MFI Services and household welfare in Katwe Butego – Division.
Findings revealed that borrowers’ households were more likely to own living houses than non those who are non– borrowers’ households. Findings also revealed that they used part of their loans to finance their children’s Education and health services.
The findings also re asserts that provision of affordable microfinance services to households remains to be an important component of development strategy as it services like training provides household members to gain new skills and knowledge which can be invested in their businesses for development.
On the other hand the study emphasized that there is need to come up with more innovative Microfinance Institutions that are supportive of their own asset accumulation and improvement of household welfare by targeting potential clients. The findings also revealed that Masaka local Government should continue to explore improvements on the quality of education and creation of job opportunities in both private and public sector to improve household welfare in Katwe Butego-Division

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