The Role of Microfinance Institutions in Eradication of Unemployment in Uganda a Case Study of Finca Uganda
Author: NAMWANJE EVE
Supervisor: Milly Kaddu
This study sought to investigate contribution of microcredit access towards eradication of unemployment in Uganda. The specific objectives were; To assess the contribution of financial literacy on business sustainability; To examine how micro saving mobilization encourages people to invest and create employment opportunities and to analyse the impact of microfinance training services on generation of new economic activities targeting employment creation.
Data was analysed using SPSS Version 16 and findings were presented in a tabular format showing frequencies, percentages, mean and standard deviation and Pearson ‘s coefficient. Qualitative data was used to analyse the impact of microfinance training on generation of new economic activities targeting employment creation and to examine how micro saving mobilization encourages people to invest and create employment opportunities. Quantitative data was used to analyse the contribution of financial literacy on business sustainability.
From the study it has been revealed that microfinance training services are key for sustainable employment at reasonable wages from which employment is created as from the responses provided by the clients. Secondly, clients also revealed that they receive adequate credit from savings for investment so that they can develop their business entities. Lastly, the respondents revealed that through financial literacy, they are able to improve their long-term and present financial wellbeing through the financial information and training provided by Finca Uganda.
The Government needs to increase the operation of MFIs countrywide especially in rural areas and in addition MFIs should also establish sensitization programs that educate and train communities on how to save and gain. In conclusion, MFIs play a vital role in eradication of unemployment and poverty in Uganda through equipping clients with knowledge and skills on how to manage cash and financial resources effectively.