Team and Project Introductions - Microfinance

Hi, we are Norman & Lindah from Makerere University Business School and Philip & Dina from Copenhagen Business School. Currently we are working on a joint research project in Kampala. Our research project is on the topic of microfinance; in particular we focus on the reasons for high default rates in in small-scale business loans in Uganda and how they can be avoided. Therefore, we have decided to conduct qualitative interviews with several lenders of microfinance loans from different financial institutions ranging from large commercial banks to small non-regulated institutions. During our first days we found out how important getting access to networks in Uganda is and that a maximum of 15 minutes scheduled for an interview can easily lead to a lively discussion over many hours. We also had the opportunity to talk to several members of a Village Savings and Loan Association (VSLA) whose meeting took place in the middle of a busy local market. Yet, surprisingly this turned out to be an interesting informal concept of lending and borrowing money to one another. A methodology with one of the lowest default rates in the microfinance industry that helps to empower poor people.