MICRO INSURANCE SERVICES AND GROWTH OF SMALL AND MEDIUM

ENTERPRISES AT BWAISE BUSINESS CENTRE, UGANDA

A RESEARCH PAPER SUBMITTED TO SCHOOL OF BUSINESS IN PARTIAL

FULFILMENT AND REQUIREMENTS OF THE COURSE;

BRES 201: BUSINESS RESEARCH I

SUPERVISOR

MR. BITAMAZIRE SILVER

……………………..

BY,

MULIISA AARON

18/INS/BU/R/0001

NOVEMBER, 2019

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 DECLARATION

I, MULIISA AARON declare that this research paper is my original work and has not been
submitted to any institution of higher learning for an academic award of Bachelors Of Business
Administration.

NAME ID SIGNATURE

MULIISA AARON 18/INS/BU/R/0001 ………………

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 TABLE OF CONTENT

DECLARATION ........................................................................................................................................... i
ABSTRACT .................................................................................................................................................. 2
CHAPTER ONE ........................................................................................................................................... 5
Introduction ................................................................................................................................................... 5
Background of the Study .......................................................................................................... 5
Statement of the Problem ......................................................................................................... 7
Scope of the Study ..................................................................................................................... 7
Geographical Scope ................................................................................................................... 8
Content Scope ............................................................................................................................ 8
Time Scope ................................................................................................................................. 8
Limitations of the Study ........................................................................................................... 8
Operational Definition of Terms............................................................................................ 10
CHAPTER TWO ........................................................................................................................................ 12
LITERATURE REVIEW ....................................................................................................... 12
Identified Gaps in Reviewed Literature ...................................................................................................... 24
CHAPTER THREE .................................................................................................................................... 25
METHODOLOGY .................................................................................................................. 25
Research Design....................................................................................................................... 25
Locale of the Study .................................................................................................................. 25
Target Population.................................................................................................................... 26
Sample Size .............................................................................................................................. 26
Sampling Techniques .............................................................................................................. 27
Data Collection Instrument .................................................................................................... 27
Validity of the Instrument ...................................................................................................... 28
Reliability of the Instrument .................................................................................................. 28
Ethical Considerations ............................................................................................................ 28
Data Analysis ........................................................................................................................... 29
Progression Analysis ............................................................................................................... 29
CHAPTER FOUR…………………………….…………………………………………………………..31

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 Descriptive Statistics……………………………………………………………………………………31
Analysis of Data Variables ………………………..…………………………………………………...32
Profitability & Sales Turnover ……………………………………………………………………..…33
Sales Turnover & Profitability ……………………………………………………………………...…34
Uptake of Micro-Insurance Service……………………………………………………………………35
Knowledgeability of Micro-Insurance……….…………………..……………………………………36
Inferential Statistics ………………………………..…………………………………………………..36
Anova (Analysis of Variance)…………………………………………………………………………...37
Regression Coefficients ……………………………..………………………………………………….39

CHAPTER FIVE ………………………………………………………………………………………….40

REFFERENCES ………………………………………………………………………………………….41

List of Appendix ........................................................................................................................................ 45

Appendix 1: Questionnaire for Respondents of Small and Medium enterprises .............. 45

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LIST OF TABLES
TABLE 1 ………………………………..…………………………………………………..30
TABLE 2 ……………………………………………………………………………………31
TABLE 3 ……………………………………………………………………………………35
TABLE 4 ……………………………………………………………………………………36
TABLE 5 ……………………………………………………………………………………37
TABLE 6 ……………………………………………………………………………………38

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 ABSTRACT
The study on business growth and its micro insurance influencing factors of; credit life, Life,

Burglary, Business interruption at Bwaise Business Centre was carried out with the intention of

ascertaining the particular variable which determines small and medium enterprise business

growth. In this case the dependent variable being Return on Assets (a measure of profitability)

while micro insurance influencing factors of; credit life, Life, Burglary, Business interruption are

the independent variables.

Structured statistical analyses with the aid of SPSS were carried out in drawing the answer to the

problem of the factor that influences small medium enterprise business growth.

The findings suggested that the independent variables of micro insurance influencing factors of;

credit life, Life, Burglary, Business interruption Credit life Insurance, all influence the dependent

variable, customer satisfaction by 57.3%.

A further analysis of the variables indicates that all the independent micro insurance variables of;

credit life, Life, Burglary, Business interruption positively and significantly influence small and

medium business growth at Bwaise Business Centre. The most salient independent variables in

terms of magnitude and size of lowest significance are: Business Interruption, Life (Disability and

Funeral) and Credit Life. There significances stood at 0.00, 0.011 and 0.012 respectively.

For this study, Business Interruption, Life (Disability and Funeral) and Credit Life in that order

are to be adopted as micro insurance solutions to addressing the small and medium enterprise

business growth problem at Bwaise Business Centre.

Key words: Return on Assets, Business Interruption Insurance, Life Insurance, Credit Life
Insurance

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 CHAPTER ONE

Introduction

Background of the Study

Micro insurance is defined as insurance with low premiums and coverage. In this definition,

“micro” refers to the small financial transactions that each insurance policy generates (Churchill,

2009). A recent study shows that there is a significant relationship between micro insurance

services and growth of Small and Medium Enterprises in the world (James Hunt, 2019)

Aggregate Gross Written Premiums increased by 17.51% from 728.4 billion Uganda

shillings in 2017 to 856 billion Uganda shillings in 2018. Non-Life Gross Written Premiums grew

by 12.36% from 507.2 billion in 2017 to 570 billion Uganda shillings in 2018; Life Gross Written

Premiums increased by 28.69% from 168 billion Uganda shillings in 2017 to 216.9 billion Uganda

shillings in 2018, while Gross Written Premiums of Health Member Organisations increased by

31.25% from 52.7 billion Uganda shillings in 2017 to 69.1 billion Uganda shillings in 2018. In

terms of concentration, Non-life business continued to dominate the insurance industry, though its

relative share declined by almost 4 per cent points from 70.01% in 2017 to 66.6% in 2018. The

share of Life premiums in total premiums on the other hand increased from 22.86% in 2017 to

25.34% in 2018 (Dr.Isaac Nkote, 2019).

According to Quamrul Hassan (2009) ,Financing the poor is a risk, still Micro Finance

Institutions (MFIs) have been involved in reducing and protecting poor household’s

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vulnerability through micro-credit and savings program One of the risks comes from life and

health risk of the clients, which ultimately makes the loan repayment uncertain.

Small and Medium enterprises constitute 59.7 % and 59 % of all employers in the United States

(US) and European Union (EU), respectively. People operate restaurants, saloons, retail and whole

sale shops, offer services at small scale level for a number of years and at one point such enterprises

tend to increase in profitability, and liquidity (Sunny, 2011) and hence it is confirmed that access

to micro insurance services has a very great impact on the growth of Small and Medium enterprises

in the United States of America.

In South Africa, the importance of finances has been viewed as a critical element for financial

growth of medium-sized enterprises. Financial growth is used as a general measure of a firm's

overall financial health over a given period and can be used to compare similar firms across the

same industry or to compare industries or sectors in aggregation (Lindiwe Zulu, 2019). There are

many different ways to measure financial growth, but all measures should be taken in aggregation.

Achieving financial growth creates more certainty and confidence in making both short- and long-

term decisions and this in turn leads to a healthier business and faster growth rate (Phillip de Wet,

2011).

In Kenya, the small-scale enterprises sector employs 74% of the labour force and contributes over

18% of the country’s gross domestic product (GDP), (Ngugi, 2012). This has been necessitated by

the increasing awareness within countries that large projects especially in the industrial sector are

less likely to generate the requisite employment opportunities, given the high capital-intensity of

output in the sector.

According to Julius Businge (2017), Small and Medium Enterprises in Uganda make up over 70%

of the economy and contribute above 20% of the Gross Domestic Product (GDP) which is really

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sizable. Small and Medium enterprises account for 90% of the private sector as of the study made

by Organization for Economic Cooperation and Development (OECD), (2018). This therefore

shows that the active participation of Small and Medium enterprises in the economy of Uganda

could be the engine to economic growth across all sectors such as the service sector, commerce

and trade, manufacturing, among others (Julius Businge, 2017).

Small scale enterprises in Bwaise Business Trading Centre are still facing decline in growth for

example with overall profit decrease by over 21% in 2017 and 37% in 2018 and this is suspected

to be caused by lack of access to Micro Insurance services (National Small Business Survey of

Uganda, March, 2019). It is however not clear how access to Micro Insurance services affects the

growth of the Small and Medium enterprises. This study therefore intends to determine the

relationship between Micro Insurance services and growth of Small and Medium enterprises in

Bwaise Business Centre.

Statement of the Problem

Micro Insurance is one of the latest and most growing trends in modern trade. It is all about

only paying for the insurance you actually need and is designed to help more people buy

insurance covers which they were previously unable to afford (James Hunt, 2019). Despite

the interventions by the government to improve business environment for the growth of

Small and Medium enterprises, over 10,000 people who start a business every year, 40%

fail within a year potentially owing this to low uptake of Micro Insurance services affecting

their growth (Uganda Bureau of Statistics, 2018) .In addition, Small and Medium

enterprises in Bwaise Business Center are facing decline in financial growth with overall

profit decrease by over 21% in 2017 and 37% in 2018 (National Small Business Survey of

Uganda, March, 2019). This study therefore seeks to find out the relationship between

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 Micro Insurance services and growth of Small and Medium enterprises in Bwaise Business

Trading Centre, Uganda.

Scope of the Study

Geographical Scope

The study will be carried out among Small and Medium enterprises in Bwaise Business Center

which lies in Kawempe Division approximately 5km, by road, north of Kampala’s central business

district, Kampala Capital City Authority.

Content Scope

The study will look at Micro Insurance services and an independent variable and growth of Small

and Medium enterprises as dependent variable. Where Micro Insurance services will be measured

using credit-life, life (disability, funeral), burglary, business interruption while Growth of Small

and Medium enterprises will look at profitability of Small and Medium enterprises in Bwaise

Business Centre.

Time Scope

The researcher’s will look at findings of Growth of Small and Medium enterprises in Bwaise

Business Trading Centre as from 2016-2018, putting major emphasis in 2019 where the research

is being conducted.

Limitations of the Study

The study will be limited to using cross-sectional research because it involves data collection from

a sample of the population at one specific point in time rather than longitudinal research design

that would have yielded more results.

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The study findings will have been productive more results if conducted in a bigger town other than

Bwaise Business Centre.

The researchers will only be limited to Micro Insurance services and Growth of Small and Medium

enterprises in Bwaise Business Centre.

Theoretical Framework

Utility Theory and Insurance by R Kaas (2008)

The insurance industry exists because people are willing to pay a price for being insured. There is

an economic theory that explains why insured are willing to pay a premium larger than the net

premium, that is, the mathematical expectation of the insured loss.

This theory postulates that a decision maker, generally without being aware of it, attaches a

value u(w) to his wealth w instead of just w, where u(·) is called his utility function. To decide

between random losses X and Y, he compares E[u(w − X)] with E[u(w − Y)] and chooses the loss

with the highest expected utility. With this model, the insured with wealth w is able to determine

the maximum premium P+ he is prepared to pay for a random loss X. This is done by solving the

equilibrium equation E[u(w − X)] = u(w − P). At the equilibrium, he does not care, in terms of

utility, if he is insured or not. The model applies to the other party involved as well. The insurer,

with his own utility function and perhaps supplementary expenses, will determine a minimum

premium P−. If the insured’s maximum premium P+ is larger than the insurer’s minimum

premium P−, both parties involved increase their utility if the premium is between P− and P+.

Conceptual Framework

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Figure 1 shows the conceptual framework that will look at the independent variable and dependent

variable in the study. Where independent variable will be measured using; credit-life, life

(disability, funeral), burglary, business interruption. While the dependent variable will look at;

profitability.

Independent Variable Dependent Variable

Micro Insurance services Growth of SMALL AND

• Credit life MEDIUM ENTERPRISES’s
• Life(disability, funeral) • Profitability
• Burglary
• Business interruption

Figure 1: Showing the Conceptual Framework of the Study. Deloof M (2003)

In this study when Micro Insurance services in Bwaise Business Trading Centre is properly

implemented in terms of credit-life, life (disability, funeral), burglary, business interruption, the

Growth of Small and Medium enterprises will improve in terms of profitability.

Operational Definition of Terms

Micro Insurance: According to research, refers to insurance with low premiums and coverage.

It also refers to the small financial transactions that each insurance policy generates..

Credit Life: According to research, refers to the insurance policy designed to pay off a

borrower’s outstanding debts if the borrower dies.

Life (Disability, Funeral): According to research, refers to a contact between and insurer and a

policy holder in which the insurer guarantees payment of a death benefit to named beneficiaries

upon death of the insured.

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Burglary: According to research, refers to a policy that offers compensation of loss and damage

resulting from a burglary attempt in the premises.

Business Interruption: According to research, refers to an insurance policy which covers loss of

profit arising from physical loss or damage to the property insured, thus hindering a company

from carrying out its planned level of business.

Small and Medium enterprises: According to research, refers to non-subsidiary, independent

firms which employ less than a given number of employees. Small enterprises employ 10-50

employees and Medium Enterprises employ 50-250 employees.

Profitability: According to research, refers to ability of a Small and Medium enterprises to use

its resources to generate revenues in excess of its expenses

Return on Assets: Return on assets (ROA) is an indicator of how profitable a company is

relative to its total assets. ROA gives a manager, investor, or analyst an idea as to how efficient a

company's management is at using its assets to generate earnings. Return on assets is displayed

as a percentage.

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 CHAPTER TWO

LITERATURE REVIEW

This chapter gives a review of related literature about the same topic from different scholars whose

views influence ideas of the researcher’s on the variables under study.

Micro Insurance services

There seems to be general agreement about the most important product attributes of micro

insurance products from a client perspective: simple, affordable and valuable (Churchill, 2006;

Leftley and Mapfumo, 2006; McCord, 2008). These factors are determinants of uptake and

therefore determine the impact of micro insurance as well. An often-identified constraint in selling

insurance to poor households is a lack of understanding of insurance products (McCord, 2001a).

More educated households have been found to be the ones who are more likely to take up insurance

(Chankova et al., 2008; Gine et al., 2007b). According to Farrell, G., Tseloni, A. and Tilley, N.

(2011), Overcoming this constraint requires a dual effort to improve communication and financial

education on risk-pooling, insurance and rights of policy-holders tailored to low-educated and

illiterate individuals on the one hand, and simplify policies on the other hand.

Clients’ understanding of insurance products is key not only to take up of insurance, but also to

use and appreciation of the policy as well as satisfaction with the insurance. The impact of micro

insurance on the welfare of the poorest households strongly depends on whether households are

aware of the benefits of the insurance, can therefore make full use of it, and continue to stay

members of their insurance policy (Asemeit, O. 2014). However, keeping products affordable

implies keeping costs low. Therefore, more research is needed on innovative, cost-effective ways

and channels of communication and financial education tailored to cater to low-educated, illiterate

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people, a serious constraint to the uptake of insurance has to be trust (Hearnden, I. and Magill, C.

2004).

McCord (2008) underlines that a fine balance is required between acquisition of new technologies

(which decrease costs by making the insurance product less labor intense) and human contact to

educate policy holders and build trust. Despite its importance, there is little systematic knowledge

about instruments and mechanisms to build trust (Schneider, 2005). Dror et al. (2007) study

households’ willingness to pay, analyzing data from a bidding game conducted in more than 3000

households in India. They find a higher level of nominal willingness to pay compared to previous

studies; further, they show that household income and nominal willingness to pay are positively

correlated, while household income and willingness to pay as a percentage of household income

is negatively correlated. Further, their results suggest that household size is the most important

determinant of willingness to pay levels. Willingness to pay could also be enhanced by simplifying

premium collection methods and making premiums payable in higher frequencies could be helpful

in promoting enrolment by low-income households (Chankova, 2008).

Credit life
Credit life insurance is one of the most widely available insurance products to low-income

consumers world-wide and is often a low-income consumer’s first encounter with insurance

(Blevins, K., 2012) Therefore the question of whether consumers are getting a fair deal when they

purchase it is central to the inclusive insurance debate. According to the National Credit Act

(NCA), credit life insurance’ includes cover payable in the event of a consumer’s death, disability,

terminal illness, unemployment, or other insurable risk that is likely to impair the consumer’s

ability to earn an income or meet the obligations under a credit agreement.

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According to Brainard, L. (2006), A credit provider is entitled to require a consumer to maintain

credit life insurance during the time of the agreement so that the loan will be paid should something

happen to the customer. The pay-out decreases in correlation to the repayment making it a

decreasing sum assured product hence it is designed to protect and provide a measure of security

for both the insured and the credit provider. It also provides an additional source of income for the

lender from the insurance sale Tseloni, A., Thompson, R., Grove, L., Tilley, N. and Farrell, G.

(2014)

Credit provider as policyholder. Under this model, the credit provider’s whole book is insured by

one insurer, with the credit provider, rather than individual borrowers, as policyholder instead, the

credit provider pays the premium to the insurer and is the beneficiary of any claims payments

(Tilley, N., Tseloni, A. and Farrell, G. 2011). Self-insurance, This covers credit for which there is

no insurance offered and the credit provider carries the risk of default internally, implicitly pricing

for it in the interest rate. According to Hearnden, I. and Magill, C. (2004), Credit life insurance

protects both the credit provider and the consumer, It protects the credit provider against default

on repayments relating to the risks covered. In addition, it provides credit providers with the

opportunity to earn additional fee income (commission and administration fees), allows it to avoid

the need to attempt claim payment from a deceased borrower’s estate, which could lead to negative

public relations, and allows the lender to offer a broader set of financial products (Asemeit, O.

2014).. These benefits have precipitated the expansion of credit life insurance and the

establishment of closer links between credit providers and insurers offering this type of insurance.

According to Tseloni, A et al (2014), credit life insurance is often the first insurance encounter

for low-income consumers. If correctly structured and explained to the client, it can educate the

client about insurance and offer real value to him or her. Thus it has the potential to introduce

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clients to the concept of insurance in such a way that they become voluntary clients of other types

of insurance in future and it can also be argued that consumer credit insurance allows low income

people access to short-term insurance (Farrell et al 2011). The value of credit life insurance to

clients is enhanced when it covers more than just the outstanding balance of the loan. Credit life

insurance thus unlocks a diverse range of opportunities that could improve the standard of living

by allowing access to products or services that cannot be acquired with cash. However, it can also

impact negatively on consumers when it leads to high levels of indebtedness (Brainard, L. 2006).

Life(disability, funeral)

In 2012, Life insurance penetration in India which is the major indicator of growth of insurance in

the country was just 3.17 % compared to Japan 9.2%, Taiwan 15.0% S. Korea 6.9%. (IRDA

Annual Report 2012-13, p121-122) One of the important reasons for low penetration was/is

unawareness of the Indian people about need of insurance in their life. It is true that with the

establishment of IRDA and with the entry of private sector insurance companies, life insurance

market is witnessing introduction of innovative, need based and customer friendly products

(Cahalane, M. 2001). However, still majority of the Indian population is either uninsured or under-

insured. Yet, buying a life insurance policy is not a subject of preference on the 'agenda' of most

of the Indian people. Those who take out an insurance policy give priority for tax exemption and

saving rather than risk cover. This paper is an attempt to study the awareness about need of life

insurance among the customers of LIC. This research revealed that the customers are aware about

need of life insurance in their life and the Individual Agents of LIC are the major source of

information for the policyholders (Brainard, L. 2006).

According to Tseloni et al (2014), Depending on how the product is structured, it can consist purely

of a life insurance component or be structured as a “hybrid” product with life and general insurance

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components. The life insurance component is typically structured as follows: •Policies will pay a

lump sum equal to the value of the outstanding debt in terms of a credit agreement in the event of

the death of the assured life or their permanent disability. •Policies also typically offer a benefit

covering either a proportion of the outstanding debt, or a benefit that covers a proportion of your

monthly instalment (up to 100%) for a specified period of time (sometimes as little as three

months). Pay-outs are made in the event of the insured becoming temporarily disabled,

retrenchment occurring, is placed products on behalf of the insurer concerned in return for a

commission. Following a trend towards integration of the value chain, the major retailers now own

their own insurance subsidiaries which provide the insurance products they need to secure their

credit sales, such as credit life insurance and product insurance They also often offer additional

insurance such as funeral cover which is not related to the credit sale but is a voluntary add-on

(Tilley, N., Tseloni, A. and Farrell, G. (2011).

Burglary

Burglary in a dwelling is a universally frequently occurring type of property crime with a high

impact on the victims (Mawby, 2001). The consequences of burglary in terms of monetary value

may vary widely in different contexts. While in the industrialized world burglars frequently steal

objects of a high value, such as audio/video equipment, jewelry, or computers, burglary in

developing countries is often aimed at stealing cattle, food, house appliances, linen, or cutlery.

Regardless of the economic losses, victims regard burglaries as very serious since it is a violation

of their privacy in the domestic sphere (Baker, G. and Gray, A. 2005)

According to Blevins, K., Kuhns, J. and Lee, S. (2012) Burglary constitutes any kind of illegal

entry to a structure or property, forcibly or not, with the intent to commit a felony or theft; the

exception to this is entry into a vehicle, which is larceny. Varying degrees of burglary have been

16
defined based on the types of entry, but differ by state. Statistics available from the FBI Uniform

Crime Reports indicate that “property crimes,” of which burglary is included, dropped 2.8% on a

year-by-year comparison (2010 versus 2009). Retailers can reduce the likelihood of being

victimized by this type of crime through physical security measures and electronic means, which

would include the installation of a burglar alarm system (Cromwell, P. and Olson, J. 2004).

These systems can be basic or very sophisticated and are dependent upon local law enforcement

to respond in a timely manner for appropriate apprehension. The level of physical security and

systems will be driven by the geographical area in which the retail location is domiciled and the

type of merchandise being protected. Data is readily available, which will assist the retail

security executive in making these types of protection decisions (Bowers, K.J. and Johnson, S.D.

2005).

A new study of 500 small and medium-sized business owners, commissioned by independent

charity Victim Support and security firm ADT, found that businesses were being repeatedly

targeted by criminals – causing them to lose up to 151 days of trading over the lifespan of the

business and costing owners up to £25m, or £2,625 for each crime. Some 27 per cent said they had

been victims of burglary, 19 per cent of business owners were targeted by theft 20 times or more

across the lifespan of their business and a fifth of small firms had suffered from vandalism.

(Blevins, K. et al 2012)

According to Bowers, K.J. and Johnson, S.D. (2005), While the burglars were unsuccessful, they

still wrought £1,000 worth of damage, with both the door and frame needing to be replaced. “It’s

the amount of money involved in putting everything back together again which is probably the

biggest problem, because the insurance doesn’t cover everything,” she added. “It is all a hassle

17
and takes weeks to recover from. The research indicated that the lasting impact of crime on both

trade and staff morale was significant – 69 per cent of owners suffered emotional distress, an added

unnecessary worry outside of the stressfulness of running a business. Financially, 42 per cent

experienced lost income and 33 per cent became worried they would be targeted again as a result

(Baker, G. and Gray, A. 2005)

Business interruption

Business interruption insurance is a type of insurance that covers the loss of income that a business

suffers after a disaster. The income loss covered may be due to disaster-related closing of the

business facility or due to the rebuilding process after a disaster (Thompson, 2011). It differs from

property insurance in that a property insurance policy only covers the physical damage to the

business, while the additional coverage allotted by the business interruption policy covers the

profits that would have been earned (Berry, 2001). According to Ahmed, N., Ahmed, Z. and

Usman, A. (2011), This extra policy provision is applicable to all types of businesses, as it is

designed to put a business in the same financial position it would have been in if no loss had

occurred. This type of coverage can be added onto the business' property insurance policy or

comprehensive package policy such as a business owner's policy (BOP) or as part of a standalone

policy in some jurisdictions. Since business interruption is included as part of the business' primary

policy, it only pays out if the cause of the loss is covered by the overarching policy or a defined

event in the case of a standalone (Ayeh, R. O. 2010).

According to Cahalane, M. (2001) businesses can purchase contingent business interruption

coverage, which pays out when a business is unable to operate because of an event (such as a

natural disaster) that damages the business premises of one of its suppliers or customers, thus

18
preventing it from engaging in normal trade. Business interruption insurance is insurance coverage

that replaces business income lost in a disaster. The event could be, for example, a fire or a natural

disaster. Business interruption insurance is not sold as a separate policy but is either added to a

property/casualty policy or included in a comprehensive package policy as an add-on or rider.

Business interruption insurance is not sold as a separate policy but is an add-on to an existing

insurance policy (Berry, Doug 2001).

Business interruption insurance premiums (or at least the additional cost of the rider) are

tax deductible as ordinary business expenses. This type of policy pays out only if the cause of the

business income loss is covered in the underlying property/casualty policy. The amount payable

is usually based on the past financial records of the business. Business interruption

insurance coverage lasts until the end of the business interruption period, as determined by the

insurance policy. Most business interruption insurance policies define this period as the date that

the covered peril began until the date that the damaged property is physically repaired and returned

to the same condition that existed prior to the disaster (Thompson, 2011). Business interruption

insurance is insurance coverage that replaces income lost in the even that business is halted for

some reason, such as a fire or a natural disaster. This type of insurance also covers operating

expenses, a move to a temporary location if necessary, payroll, taxes, and loan payments and also

applies if government actions cause operations to cease temporarily, which results in a loss for a

firm. It is estimated that between one-third and one-half of all businesses have no business

interruption insurance (Hearnden, I. and Magill, C. 2004).

A business also needs these same three types of insurance coverages. The first two are provided

by commercial property insurance which, like life insurance, pays for direct damage to property if

19
it is totally destroyed by a covered peril. Like medical insurance, commercial property insurance

also pays for the cost to repair the property if it is only damaged and not completely destroyed.

The insurance coverage that is often overlooked is business interruption insurance which is

comparable to disability insurance in that it pays for the business’s loss of profit and expenses that

continue while the business is not fully operational during repair or relocation following a loss

(Cromwell, P. and Olson, J.2004)

Profitability

Drawing a framework from the financial economics literature and utilizing a dynamic panel data

design covering 2004–2009, this study examines the profitability of micro-life insurers in the

market. Akotey, O.J., Osei, K.A. and Gemegah, A. (2011). The results indicate that the profitability

of micro-life insurers is not influenced by factors such as the ownership structure, leverage and

size of firms. However, profitability is found to be negatively related to the level of reinsurance

suggesting that reinsurance in the micro-life insurance sector of the Insurance market may be

highly priced to reflect the increased risk associated with insuring the lives of low-income groups.

The link between profitability and the degree to which micro-life insurers have a diversified range

of products suggests that multi-product firms are better able to reduce the cost of risk in-house

through “natural diversification” as well as realize benefits from economies of scale and scope

(Abdul Kader, H., Adams, M.B. and Hardwick, P.2010)

According to Adams, M.B and Buckle, M. (2003), Furthermore, the profitability of micro-life

insurers operating in Nigeria is found to be positively influenced by the level of interest rates in

the economy. This implies that the investment function and macroeconomic factors could be

important in assessing the future financial performance of micro-insurance firms in developing

countries. This study examines the factors that influence the profitability of micro-life insurance

20
providers in Nigeria—a major developing economy of sub-Sahara Africa (Churchill, C. 2006).

Micro-insurance provides risk protection for low income groups and is part of the growing

international micro-finance industry that emerged in the 1970s. Approximately, 135 million

people worldwide currently hold micro-insurance policies with annual rates of growth in some

emerging markets estimated to be up to 10 per cent per annum. However, this number of micro-

insurance policies represents only about 2–3 per cent of the potential market. Matul, et al (2010)

According to Churchill, C., Phillips, R.D. and Reinhard, D. (2011), By protecting low income

groups from the vulnerability of loss shocks, micro-insurance is increasingly being spouted as a

formalized risk management solution to world poverty and a key driver of economic growth and

entrepreneurial development in low income countries such as those of sub-Sahara Africa. The

potentially large size of the global micro-insurance market plus the growing expectation that

micro-insurance could be an effective mechanism for reducing world poverty has generated

considerable interest among financial institutions eager to expand their business activities outside

the saturated traditional markets in developed countries, and international agencies (World Bank)

concerned with promoting sustainable development in emerging economies (Abdul et al 2010)

Growth of Small and Medium Enterprises

The Small and Medium Enterprises term is used to mean micro Small and Medium enterprises and

there is no universal definition of Small and Medium Enterprises. Different countries use various

measures of size depending on their level of development. The commonly used yard sticks are

total number of employees, total investment and turnover (Tseloni et al 2014). Small and Medium

enterprises play a major role in the economy as they are a major source of entrepreneurial skills,

innovation and employment, However Small and Medium enterprises are often confronted with

21
market imperfections. Small and Medium enterprises frequently have difficulties in obtaining

capital or credit particularly in the early start-up phase and their restricted resources may also

reduce access to new technologies of innovation. Muiruri (2014). Despite abundant literature on

the impact of microfinance on Small and Medium enterprises, most empirical studies on micro-

insurance look at micro-insurance in relation to entrepreneur welfare and income. Only few studies

relate insurance methods to enterprise growth and survival. (Berry, Doug 2001), reveal that factors

affecting long-term growth, survival and viability of Small and Medium enterprises are categorized

into 4 broad categories. These are presented as macroeconomic factors, factors that affect access

to social capital, factors that affect the internal efficiency of small businesses and enterprises and

factors that relate micro finance services. Micro Finance Services This includes micro finance

factors like, availability of credit, access to credit finance, sources and amount of initial start- up

capital, terms / or conditions of loan repayment, and the extent of effective utilization of credit.

Micro finance also includes non-financial services like marketing and technology services,

business training, production training and subsector analysis and interventions. (Abdul Raheman&

Mohamed Nasr, 2007). Enterprise development services can be 18 sorted out into two categories.

The first is enterprise formation which is the offering of training to persons to acquire skills in a

specific sector such as weaving as well as persons who want to start up their businesses. The second

category of enterprise development services rendered to its clients is the enterprises transformation

program which is the provision of technical assistance training and technology in order to enable

existing Small and Medium enterprises to grow and advance in terms of marketing and production.

Ayeh, R. O. (2010).

22
 Relationship between Micro Insurance services and the Growth of Small and Medium

enterprises

Micro Insurance is crucial in developing strategy to promote poverty reduction and increase

insurance penetration in the country. This is because it has the capacity to offer solutions to perils

facing small holder enterprises on a daily basis (Ayeh, R. O.2010). Microfinance institutions can

use the concept of micro insurance to secure loans advanced to individuals without requiring

further collaterals, hence increasing accessibility of loans to individuals who are not served by the

formal banking sector. Micro insurance concept offers peace of mind to individual policyholders

thereby encouraging them to increase investment in the enterprises for higher returns (Tseloni et

al 2014). Modern portfolio theory links financial performance to asset rebalancing and

maximization in order to increase performance and reduce perils. It guards against high perils and

calls for prudent underwriting. This entails a wide insurance coverage through risk pooling.

Muiruri (2014) demonstrated that micro insurance establishments offer services to customers who

are majorly Small and Medium enterprises and has contributed to growth, which has been rapid

over the years. Due to increase in public awareness on micro insurance products coupled with stiff

competition from the policy providers and claims experience, further investigations are required

to establish the relationship between micro insurance and Growth of Small and Medium enterprises

(Abdul Raheman& Mohamed Nasr, 2007).

23
 Identified Gaps in Reviewed Literature

Despite its potential economic and political importance, academic research on micro-insurance is

still very much at an embryonic stage (Churchill, et al 2011). Recent studies have highlighted the

challenges and successes of micro-insurance programs in less developed countries. However, none

of these prior studies have empirically examined those factors that determine the profitability of

micro-insurance schemes. This study thus seeks to address this gap in the literature. The present

study is important in at least three main regards. First, empirical evidence linking period

profitability to firm-specific factors, such as ownership structure, financial structure, amount of

reinsurance, firm size and so on, could inform policyholders and shareholders as to whether a

micro-life insurance provider is likely to be able to meet its contractual obligations to them

Angove, J. and Tande, N. (2011).

24
 CHAPTER THREE

METHODOLOGY

This chapter will look at methods used in data collection that comprises of; research design, locale

of the study, target population, sample size, sampling technique, data collection instrument,

validity of the instrument, reliability of the instrument, ethical consideration and data analysis.

The data to be used is both primary and secondary. Primary data is to be collected with the aid of

a questionnaire while secondary data will be collected from Uganda Bureau of Statistics and

Insurance Regulatory Authority.

Research Design

The researchers will use descriptive research designs through the use of qualitative and quantitative

analysis, cross-sectional research design and correlational research design. Descriptive research

design is used to find the levels of Micro Insurance services and the Growth of Small and Medium

enterprises in Bwaise Business Trading Centre. The study will use cross-sectional research design

in their work, as the data will be collected at one given point. While correlational research design

will be used by the researchers, to establish the relationship between Micro Insurance services and

the Growth of Small and Medium enterprises in Bwaise Business Trading Centre (Amin, 2005).

Locale of the Study

The study will be carried out among Small and Medium enterprises in Bwaise Business Center

which lies in Kawempe Division approximately 5km, by road, north of Kampala’s central business

district, Kampala Capital City Authority

25
 Target Population

The target population of Small and Medium enterprises Bwaise Business Center will be 130

businesses in Bwaise Business trading Center

BUSINESS TYPE TARGET POPULATION

SUPERMARKETS 20

HARDWARE SHOPS 30

WHOLE SALE SHOPS 30

RETAIL SHOPS 10

BOTIQUES 20

PHARMACIES 10

TOTAL 120

Sample Size

The researchers will use Krejcie &Morgan (1970) mathematical table to get a sample size of 97

Business in Bwaise trading Center illustrated in (Appendix 3).

26
 Sampling Techniques

The study will use stratified sampling as the target population will be divided into strata’s and

simple random sampling will be used in our study, as the researchers will acquire a list of

businesses from the town clerk indicating the number of Small and Medium enterprises businesses

in Bwaise where they will randomly select the sample they want in their study. Where each

member of the population is equally likely to be chosen as part of the sample.

Data Collection Instrument

The researchers will use self-administered questionnaires to collect data from the respondents,

where they will formulate open ended and closed ended questions. The questionnaire will have

four sections that will comprise of; Section A: will have questions on bio data, Section B: will

have questions on micro insurance services, Section C: will have questions on growth of Small

and Medium enterprises businesses and questions on suggestions and recommendation. The

researchers will base their questionnaire using a four Likert scale that will have; poor, average,

good and excellent.

Table 1: Showing Likert Scale

Scale Mean Range Response Mode Interpretation

4 3.40-4.00 Very Satisfied Excellent

3 2.60-3.39 Satisfied Good

2 1.80-2.59 Dissatisfied Average

1 1.00-1.79 Very disatisfied Poor

Rensis (1932)

27
 Validity of the Instrument

In testing the validity of the instrument, the researchers will use the Content Validity Index (CVI)

through the help of their supervisor and other experts for validation. Where the researchers will

take the relevant items in the instrument divided by the total number of items in the instrument,

where the CVI will be expected to be 0.7 and above according to Amin (2005) for the research

instrument to be considered valid.

𝐑𝐞𝐥𝐞𝐯𝐚𝐧𝐭 𝐈𝐭𝐞𝐦𝐬
𝐂𝐕𝐈 =
𝐓𝐨𝐭𝐚𝐥 𝐍𝐮𝐦𝐛𝐞𝐫 𝐨𝐟 𝐈𝐭𝐞𝐦𝐬

Reliability of the Instrument

The researchers will carry out a pretest using 15 questionnaires at Kawempe Business center as it

has similar characteristics with that of Bwaise business center. After collection of data the

researchers will enter them in the statistical package for the social science package (SPSS) to

determine the reliability of the instrument. Cronbach’s Alpha scale recommends a coefficient of

0.7 and above as an adequate measure of internal consistency of the research, therefore making

instrument reliable (Cronbach & Richard, 2004).

Ethical Considerations

The researchers will get an introductory letter from the Dean School of Business, which will

introduce them to Bwaise business trading Centre Small and Medium enterprises that they are

students of Bugema University carrying a research on variables under investigation. Where if the

granted permission by the management, they will distribute questionnaires to the respondents. The

research will ensure that information collected by the researchers will treated with confidentiality

and privacy of the respondents will be safe guarded, as it is for academic purposes.

28
 Data Analysis

The data will be collected, coded and analyzed using Statistical Package for Social Science (SPSS)

as a scale of analysis for the study. Objective 1 and 2 of the study will be analyzed using descriptive

statistics by mean and standard deviation to determine level of Micro Insurance services and level

of growth of Small and Medium enterprises. Objective 3 will be analyzed using Pearson correlation

to establish the relationship between level of Micro Insurance services and level of growth of Small

and Medium enterprises

Regression Analysis

With the intention of identifying the specific variables that influence business growth at Vision

Bwaise Business Centre, a regression model was extracted. This showed the relationship between

the dependent variable of; business growth as measured by Return on Assets and the Micro

insurance independent variables of; Credit life, Life, Burglary and Business Interruption.

To that effect a regression model below was formed:

Business Growth = Credit Life + Life + Burglary + Business Interruption

Where

ROA = β0+ β1CLi,n+ β2Li,n + β3Bi,n + β4BIi,n + ë i,n

Where

CLi,n is Credit Life Insurance

Li,n is Life insurance
Bi,n is Burglary Insurance
BIi,n is Business Interruption Insurance
ë i,n is the error term
ROA is Return on Assets

29
The above model was tested for multicollinearity with the aid of the Variance Inflation Factor.

Results for this indicated that the Variance Inflation Factor was below 5 and its reciprocals were

close to zero.

With the above conditions met, the regression model on business growth as measured by Return

on Assets at Bwaise Business Centre was considered as valid (Gujarati, 2007).

30
 CHAPTER FOUR
Descriptive Statistics
The descriptive statistics was determined through obtaining the mean, mode and median of the

study variables.

Table 1 below reveals the mean, median and mode of the study on the micro-insurance variables

that influence Small and Medium Enterprises profitability.

Table 1

Return on Credit Life Life Burglary Business

Assets (Disability, Interruption
Funeral)

Mean 5.20 4.05 5.37 5.77 3.49

Median 5.50 4.00 6.00 6.00 3.00

Mode 6 4 6 6 3

Data source: Primary source, Bwaise Business Enterprise

The findings in table 1 above indicate that small and medium enterprises profitability as measured

by Return on Assets has mean of 5.20, median of 5.50 and mode of 6, while the micro-insurance

variables of ; Credit Life show a mean of 4.05, median of 4.00 and mode of 4, Life has a mean of

5.37, median of 6 and a mode of 6, Burglary has a mean of 5.77, a median of 6 and a mode of 6,

Business Interruption has a mean of 3.49, a median of 3 and a mode of 3.

31
Analysis of data variables

Profitability as measured by Return on Assets

Concerning profitability as a measure of small and medium business growth, 120 enterprises at

Bwaise that responded, table 2 reveals how the business enterprises responded; 10% are very

satisfied, 40% are satisfied, 26% are somewhat satisfied, 13% were unsure whether they are

satisfied or dissatisfied, 8% are somewhat dissatisfied, 2% are dissatisfied, 1% was very

dissatisfied.

Table 2. Profitability as measured by Return on Assets

Item frequency percentage

Very dissatisfied 1 0.8

Dissatisfied 3 2.5

somewhat dissatisfied 10 8.3

Neutral 15 12.5

somewhat satisfied 31 25.8

Satisfied 48 40.0

Very satisfied 12 10.0

Total 120 100.0

Data source: Primary data, Bwaise Business Centre

32
Data source:Primary data, Bwaise Business Centre

Profitability and Sales turnover

Concerning whether profitability is the most preferred measure of business growth compared to

sales turn-over, data shows that 11% of the business enterprises were satisfied, 18% were

somewhat satisfied, 45% were neutral, 9% were dissatisfied and 17% were somewhat dissatisfied.

Data source:Primary data, Bwaise Business Centre

33
Sales turnover and profitability
Concerning whether sales turn-over is the most preferred measure of business growth compared

to profitability, the findings show that 5% of the business enterprises were very satisfied, 49% of

them were satisfied, 30% were somewhat satisfied, 9% were neutral, and 5% were somewhat

dissatisfied.

Data source:Primary data, Bwaise Business Centre

Accessibility of Micro-insurance services

The question on how accessible micro-insurance services are to businesses was asked to business

enterprises and their response was as follows; 30% were very satisfied, 37% were satisfied, 22%

were somewhat satisfied, 5% were neutral, 4% were somewhat dissatisfied and 2 % were very

dissatisfied.

34
 Data Source: Primary data, Bwaise Business Centre

Uptake of Micro-insurance services

Business enterprise respondents of Bwaise Business Centre, were asked whether the uptake of

Micro-insurance services were low as a result of them being expensive, their responses were as

follows; 2% were satisfied, 8% were somewhat satisfied, 40% were neutral, 42% somewhat

dissatisfied and 2 % very dissatisfied.

Data source:Primary data, Bwaise Business Centre

35
Knowledgeability of Micro-insurance

Respondents from Bwaise Business Centre on whether they are knowledgeable on the concept of Micro-

insurance, the responses were as follows; s 46% were somewhat satisfied, 11% were neutral, 3% were

somewhat dissatisfied, 13% were dissatisfied and 27 % were very dissatisfied

Data source: Primary data, Bwaise Business Centre

Inferential statistics
Regression Analysis
The study carried out a multiple regression analysis so as to analyze the factors affecting small and

medium enterprise growth as measured by profitability (Return on Assets). The coefficients of

determinant explain the extent to which changes in the dependent variable (Return on Assets at

Bwaise Business Centre) are influenced by independent variables of (credit life, life (disability,

funeral), Burglary, Business Interruption).

Table 3. Model Summary

Model R R Square Adjusted R Std. Error of the
Square Estimate

1 .757 .573 .554 .842

Data source:Secondary Data, Uganda Bureau of Statistics

36
Table 4 shows that the 4 independent variables that were studied that influence business growth as

measured by Return on Assets by 57.3% as represented by R2. These findings could translate to

mean that small and medium business growth is influenced by micro-insurance products of: Credit

life, Life (disability and funeral), Burglary and Business Interruption at 57.3%.

ANOVA (Analysis of variance)

Table 4 ANOVA (Analysis of variance)

Model Sum of Df Mean F Sig.

Squares square

1 Regression 108.428 5 21.686 30.607 .000a

Residual 80.772 114 .709

Total 189.200 119

Data source: Secondary data, Uganda Bureau of Statistics and Insurance Regulatory

Authority

a. Predictors: (Constant), micro-insurance products of: Credit life, Life (disability and funeral),
Burglary and Business Interruption.
b. Dependent Variable: Profitability (Return on Assets)
Analysis of Variance (ANOVA) provides information about levels of variability with in a

regression model and forms a basis for the test of significance. The “F” column provides a statistics

for testing of the hypothesis that all β≠0 against the null hypothesis that β=0. From the findings

the significance value is .000 which is less than 0.05 thus the model is statistically significant in

predicting how micro-insurance products of: Credit life, Life (disability and funeral), Burglary and

Business Interruption affect small and medium enterprise business growth as measured by Return

on Assets. The F critical at 5% level of significance is 30.61. Since F obtained is greater than the

F critical (value=2.21), this shows that the overall model is significant.

37
Regression Coefficients
Multiple regression analysis was conducted so as to determine the relationships between small and

medium enterprise business growth and the four micro-insurance products of; Credit life, Life,

Burglary and Business Interruption .

Table 5 Regression Coefficients

Unstandardized Standardized

Coefficients Coefficients

Model B Std .Error Beta T Sig.

1 (Constant) -.018 .523 -.035 .972

Credit Life .213 .083 .182 2.568 .012

Life (Disability, .244 .094 .186 2.581 .011

funeral)

Burglary .168 .081 .162 2.068 .041

Business Interruption .443 .102 .309 4.361 .000

Data source:Secondary Data, Insurance Regulatory Authority

According to the findings, the table above indicates that:

The equation (RA) = β0+ β1CLi,n + β2Li,n + β3Bi,n + β4BIi,n + ë i,n becomes:

RA = 0.018 + 0.213 CLi,n + 0.244Li,n + 0.168Bi,n + 0.443BIi,n

The regression equation above shows that all independent variables exhibit a positive relationship

with Return on Assets. Considering the relationship findings, they suggests any one increase in

any of the independent variables (Credit Life, Life, Burglary, Business Interruption) would result

38
an growth of small and medium enterprises at Bwaise Business centre and the reverse is true.

Further to this given a situation where all independent variables are held constant at zero, small

and medium business growth will be 0.018. The findings presented show that, a unit increase in

Credit life insurance will lead to a 0.213 increase in Return on Assets at Bwaise Business Centre;

a unit increase in Life insurance will lead to a 0.244 increase in Return on Assets at Bwaise Busines

Centre; a unit increase in Burglary insurance will lead to a 0.168 increase in Return on Assets at

Bwaise Business Centre; a unit increase in Business interruption insurance will lead to 0.443

increase in Return on Assets at Bwaise Business Centre and the reverse for all is true. This infers

that Business Interruption is the most significant factor which influences Return on Assets for

small and medium enterprises at Bwaise Business centre

39
 CHAPTER FIVE: DISCUSSION, LIMITATION AND CONCLUSION

From the findings in the analysis, it is noted that all the microinsurance independent variables of;

Credit Life, Life (Disability and Funeral), Burglary, Business Interruption, all positively and

significantly influence small and medium enterprise growth as measured by Return on Assets at

Bwaise Business Center (significance stood at; 0.012, 0.011, 0.041, 0.000 and 0.044 respectively).

But the most salient ones in their order being; Business Interruption insurance, Life (disability and

funeral) insurance.

The above findings are supported by Muiruri (2014) who demonstrated that micro insurance

establishments offer services to customers who are majorly Small and Medium enterprises and has

contributed to growth.

Microfinance institutions can use the concept of micro insurance to secure loans advanced to

individuals without requiring further collaterals, hence increasing accessibility of loans to

individuals who are not served by the formal banking sector. Micro insurance concept offers peace

of mind to individual policyholders thereby encouraging them to increase investment in the

enterprises for higher returns (Tseloni et al 2014). This notion is in support of the findings where

the significant relationship between profitability and the Life Insurance cover, which in most cases

is used as collateral by the small and medium enterprises to acquire quick loans from banks hence

growth.

The limitation to this study is that the independent variables were limited to only micro insurance

specific variables leaving other influencing factors to business growth untested.

Hence, a further study on the same topic should be carried out with a combination of both micro-

insurance specific factors other variables like management expertise and competence of small and

medium enterprises.

40
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 List of Appendix
Appendix 1: Questionnaire for Customers of Small and Medium enterprises
Dear sir/madam

I Muliisa Aaron, a student of Bugema University pursuing a Bachelors in Business

Administration undertaking a research topic entitled “Micro insurance services and Growth of

Small and Medium enterprises at Bwaise Business Centre, Uganda. I kindly request for your time

to answer the following questions, as the information gathered will be of academic purposes as it

will be treated with utmost confidentially.

Instructions
✓ Please tick applicable option appropriately

Section A: Bio-Data

1. What is your Gender: i) Male ( ) ii) Female ( )

2. What is your Occupation: i) Employed ( ) ii) Self-employed ( ) iii) Student ( )

3. What type of business do you deal in: i) Small Enterprise ( ) ii Medium Enterprise

4. What Micro insurance products do you purchase : i) life ( ) ii credit life iii Burglary ( ) iv

others specify…………………………………………………..

Section B: Micro insurance services

Scale: 6= Satisfied (S), 5= Some What Satisfied (SWS), 4= Neutral (N), 3= Some What
Dissatisfied (SWD), 2= Dissatisfied (D), 1= Strongly Dissatisfied (SD)
Micro insurance services S SWS N SWD D SD

5 Micro insurance service are easily accessible to the business

6 The uptake of micro insurance services is low because they are

expensive to purchase

7 The Knowledge I have about micro insurance service is very

low

Credit life

45
 8 Credit life is a “must-have” policy for all businesses

9 Credit life policies are unnecessary for a business to thrive

10 There is low or no uptake of credit life insurance policies in

Bwaise Business Center

Life(disability, funeral)

11 All businesses must have a life policy

12 Life insurance is key to successful persistence and existence of

my business

13 Life Insurance policies are very expensive to purchase

Burglary

14 All businesses must have a burglary cover

15 Burglary covers are highly affordable to purchase

16 My business is safe and free from burglary

Business interruption

17 I have a business interruption insurance cover

18 Business interruption is the greatest risk to be covered in my

business

Section C: Growth of Small and Medium enterprises

Profitability S SWS N SW D SD
D

19 Profitability is a measure of business growth

20 Growth of the business is observed through profitability rather

than sales turnover

21 Growth of the business is observed through sales turnover

rather than profitability

22. What suggestions and recommendations do you give concerning Micro insurance services

and growth of Small and Medium enterprises?

46
 ………………………………………………………………………………………………………

………………………………………………………………………………………………………

Appendix 2: Morgan Table

N S N S N S N S N S
10 10 100 80 280 162 800 260 2800 338
15 14 110 86 290 165 850 265 3000 341
20 19 120 92 300 169 900 269 3500 246
25 24 130 97 320 175 950 274 4000 351
30 28 140 103 340 181 1000 278 4500 351
35 32 150 108 360 186 1100 285 5000 357
40 36 160 113 380 181 1200 291 6000 361
45 40 180 118 400 196 1300 297 7000 364
50 44 190 123 420 201 1400 302 8000 367
55 48 200 127 440 205 1500 306 9000 368
60 52 210 132 460 210 1600 310 10000 373
65 56 220 136 480 214 1700 313 15000 375
70 59 230 140 500 217 1800 317 20000 377
75 63 240 144 550 225 1900 320 30000 379
80 66 250 148 600 234 2000 322 40000 380
85 70 260 152 650 242 2200 327 50000 381
90 73 270 155 700 248 2400 331 75000 382
95 76 270 159 750 256 2600 335 100000 384
Krejcie, Robert V., Morgan, Daryle W., “Determining Sample Size for Research Activities”,
Educational and Psychological Measurement, 1970

47