Factors affecting borrowing among household heads in Wakiso

Abstract

This research investigates the intricate web of factors influencing borrowing behaviors among household heads in the rural setting of Wakiso, Uganda. Borrowing decisions are central to household finance and play a pivotal role in shaping economic stability and livelihoods. Drawing from a diverse range of global, African, and Ugandan perspectives on savings and borrowing, this study seeks to uncover the specific determinants that drive borrowing behaviors in this unique context.The study's temporal scope spans from June 2023 to October 2023, with data analysis drawn from the 2018 Fin scope database. The research hones in on the culture of saving among heads of households and their dependents in rural Wakiso, recognizing the paramount importance of savings as a financial concept.Empirical insights from the study reveal a complex tapestry of factors influencing borrowing behaviors. It is observed that, despite socio-economic challenges, Ugandans, particularly those in rural areas, exhibit a determined propensity to save. This practice serves as both a safety net against future contingencies and a source of funding for essential investments.The research aims to provide a nuanced understanding of the determinants of borrowing behaviors, shedding light on the interplay between socio-economic factors, cultural norms, financial literacy, and institutional access. Such insights hold the potential to inform policy formulation, promoting responsible borrowing practices and enhancing the financial well-being of households in Wakiso. In conclusion, this study contributes to the burgeoning field of household finance by unraveling the intricate web of factors influencing borrowing behaviors. By delving into the unique context of Wakiso, Uganda, this research enriches our understanding of household finance within localized settings and underscores the importance of responsible financial decision-making for economic stability and prosperity.