Our group consists of four students: Azizi (Uganda), Vincent (Uganda), Marie (Denmark) and Solveig (Germany). Our overall topic is “Private Sector Development and the Influence of Microfinance”. The private sector is seen as the engine of growth of the Ugandan economy and a central pillar for increasing income, creating employment and, consequently, reducing poverty on a sustainable basis. Microfinance is the provision of financial services to small enterprises. It is seen as a possibility to reduce poverty and it can be found widely in Uganda. The most common financial instrument is microcredit or micro lending.
However, only a few microenterprises experience sustained growth, while the majority grows only a little or maintains their operations at a constant level. The success of a microfinance program in terms of outreach, financial sustainability and/or socio-economic impact, depends on an interaction between the characteristics of the program itself, both its design and the way it is managed and the context in which the program is implemented.
We are specifically interested in how far, training provided by the Microfinance Institution (MFI), has a positive impact on the survival of microenterprises. We have been conducting in-depth interviews at the Nakawa Market in the centre of Kampala. We have been talking to various entrepreneurs as well as to MFIs, in order to approach our research question: “To what extent are training programs provided by microfinance institutions perceived as beneficial to their clients?”
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