Effect of microfinance institutions on performance of enterprises in Uganda: a case study of bodaboda business in Kampala
Abstract
Microfinance institutions (MFIs) have gained significant prominence as a means of alleviate poverty and promote entrepreneurship in Uganda. The research aimed at pressing need to comprehensively assess and understand the true effect of these MFIs on the performance of enterprises within the Ugandan context. Based on the literature on microfinance institutions and the enterprises, the study had these objectives; determine the effect of microfinance institutions on performance of enterprises, to determine the effect of repayment policy set by the MFIs on the performance of enterprises, to assess the effects of interest rates set y MFIs on the performance of enterprises. Cluster sampling method was employed between the divisions of Kampala district, a sample of 399 bodaboda riders was selected from the total population. It was revealed that age, interest rates, repayment policy and marital status significantly affect the performance of enterprises