Impact of micro finance credit on women owned enterprises: a case study of Sseguku

Abstract

The study was conducted to determine the impact of micro credit on the performance of women owned enterprises with objectives; to determine the effect of microcredit on profitability of women owned enterprises, to determine the effect of microcredit on volume of sales of women owned enterprises, and to determine the effect of micro credit on level of employment among the women owned enterprises A self-administered questionnaire was used by the researcher to collection data out in Seguku, Kampala .The study employed purposive sampling to get women owning enterprises in Seguku area. Out of the 150 respondents who responded to the questionnaire, 45.33% were in the age bracket 25-34 years, 51.33% had collateral security before securing credit and 48% of them were very informed about credit information. Results indicated that there is a significant relationship between micro credit and level of profitability, volume of sales and level of employment among enterprises. Therefore the study concluded that a slight increase in micro credit leads to an increase in profitability level, volume of sales and level of employment among women owned enterprises holding other factors constant. The study recommends that the government and the banking sector may improve the existing policies and take initiatives to enhance the accessibility of the scheme and create a supporting environment to assist women during the initial stage of the venture through different training programmes.