CHALIMBANA UNIVERSITY

SCHOOL OF BUSINESS AND ENTREPRENUERSHIP

RESEARCH TOPIC:
THE IMPACT OF MORAL CONDUCT OF YOUTHS ON MANAGING THEIR
FINANCES: A CASE OF CHIPATA DISTICT

A RESEARCH PROPOSAL SUBMITTED TO CHALIMBANA UNIVERSITY IN

PARTIAL FULFILMENT FOR THE REQUIREMENT OF THE AWARD OF THE
BACHELOR’S DEGREE IN ACCOUTNING AND FINANCE

BY

YONA PHIRI

STUDENT ID: 2102139396

APRIL, 2023
TABLE OF CONTENTS
CHAPTER ONE Page No
INTRODUCTION
1.0 Overview 1
1.1 Background of the Study 1-3
1.2 Statement of the Problem 4
1.3 Significance of the Study 4
1.4 Research Objectives 4
1.4.1 Main Objective 4
1.5 Specific Objectives 4
1.6 Research Questions 5
1.6.1 Research Hypothesis 5
1.7 Delimitation of Study 5
1.8 Limitations of the Study 5
1.9 Theoretical Framework 5-6
1.10 Definition of Operational Terms 6

CHAPTER TWO
LITERATURE REVIEW
OVERVIEW 7 - 11

CHAPTER THREE
RESEARCH METHODOLOGY
3.0 Introduction 12
3.1 Research Design 12
3.2 Target Population 12
3.3 Sample size 12 -13
3.4 Sampling procedure 13
3.5 Data collection tools/instruments 13 -14
3.6 Validation andReliability of the instruments 14
3.7 Data Analysis and Presentation 14
3.8 Ethical Consideration 14 -15
REFERENCES
APPENDICES (Research Instruments, Budget, Research Schedule

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CHAPTER ONE
INTRODUCTION

1.0 Introduction
This chapter presents the background of the study; statement of the problem; purpose of
the study, specific objectives, research questions, research hypotheses, scope of the study,
significance of the study, and the operational definitions of the study.
1.1 Background of the study
Sustainable development has become an important subject of discussion in the recent
years, especially after it was raised in the UN report on sustainability, published in 2012.
Thus, connection between sustainable development and entrepreneurship has received a
lot of attention in scientific circles, resulting in a number of publications on the matter.
Zambia as a nation is tackled with many challenges in which unemployment, poverty
levels, food insecurity, and climate change are paramount. Many graduate youths ramble
in the streets without employment. The ones that are self-employed do not have training,
skills, capital that could sustain their businesses. Entrepreneurship has a critical role to
play in sustainable development and poverty eradication. It has the potential to stimulate
economic growth through job creation; help formalize businesses; create opportunities for
and thereby empower disadvantaged groups such as youth and women; and strengthen
local productive capacity by developing linkages with transnational corporations and
thereby indirectly maximize the impact of foreign investment. It also has the potential to
contribute to social development by promoting social and environmental entrepreneurship
and gender equality Zambia ranks 163 out of 186 on the UN Human Development Index
(2013) and has been classified as a lower middle income country (World Bank, 20122 ).
Despite strong macroeconomic growth from the mining sector (primarily copper), the
country faces significant income disparities, with national poverty levels remaining
relatively stagnant - 60% of the population (nationally) and 79% of rural households are
classified as poor. Approximately 70% of Zambia’s households are involved in
agriculture or aquaculture. Farming activities and self-employment are the two highest
income earners for Zambian households, but investments in many of these productive
activities are constrained by lack of access to financial services as approximately 62.7%
of the adult population currently experiences financial exclusion (FinScope, 2009).
Comparison between FinScope results of 2005 and 2009 show a slight improvement of

1
3.6% from 33.7% in 2005 to 37.3% in 2009 in overall levels of financial inclusion.
Despite this slight increase in overall levels of financial inclusion a majority of Zambian
households remain financially excluded especially in rural areas where the reports
estimate that 65.6% of adult population is financially excluded. The Zambia Business
Survey (2010) further reveals that 85% of rural-based micro, small and medium
enterprises (MSMEs) are financially excluded with only 5% being banked (FinMark
Trust., 2012).
Zambia’s Microfinance Sector is part of the formal Non-Bank Financial Institutions
(NBFIs) regulated and supervised by the Bank of Zambia. The sector was initially under
the Banking and Financial Services Act of 2000 that included 9 leasing companies, 3
building societies and 1 Development Bank. NBFIs, especially Microfinance Institutions
(MFIs) complement commercial banks and insurance companies by providing services
and products to underserved rural households, MSMEs and agro-enterprises in Zambia.
The history of microfinance industry in Zambia dates back to the period when Zambia’s
financial services industry was undergoing liberation, 1992/93 (Maimbo and Mavrotas,
2003). The majority of the MFIs were established in the last 10 -15 years and the
coverage remains low especially for rural agricultural households. Prior to 1992, the Lima
Bank, Zambia Cooperative Federation-Financial Services, the Credit Union and Savings
Association (CUSA), the National Savings and Credit Bank (NSCB), the Small Industries
Development Organisation (SIDO), later renamed the Small Enterprise Development
Board (SEDB), and the Village Industry Service were the major providers of rural
financial services (Kingombe, 2004). These institutions depended heavily on government
subsidies and also used targeted credit rendering them susceptible to massive default due
to bad microfinance practices. Due to their collapse there was a huge gap in rural and
agricultural financial services targeting small holders and agro-enterprises.
In Zambia, micro-finance institutions started early 1986 aiming at provisions of micro
credit and savings services to low income earners but economically active poor.
Generally the focuses on the group already engaged in one or several small scale
activities, clients borrow and invest in their activities, repay their loans and borrow again.
There are so many microfinance institutions operating in Zambia, the most prevailing are
PRIDE and FINCA which provide credit and savings to the poor people without collateral
(Kaplan & Norton, 1992)
Microfinance is the provision of finance services to low income clients including
consumers and the self employed that traditionally lack access to banks and related

2
services (Nuwagaba, 1997). Microfinance institutions are therefore institutions that
provide finance services to low income earners who lack access to banks and banks
related services (Georgina, 2001).
According to Garner(1996) the object of microfinance institutions is a world in which as
many poor and near poor households as possible have permanent access to an appropriate
rate of high quality services, including not just credit but also savings, insurance and
fund transfers, those who promote microfinance institutions have believed that such
access of poor or near poor people to an appropriate rate of high quality financial
services of credit and savings will help poor people out of poverty and lead to rural
development ( Agarwal, 1990).

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1.2 Statement of the problem
Small and Medium Enterprises (SMEs) have become very popular entity in Zambia due
to their important role they play in terms of reducing unemployment rate among people.
The government of Zambia has undertaken various measures and programmers to
establish and sustain the SMEs in order to contribute towards countries economic
development. This action has caused many people to formulate and engage in SMEs.
Despite a rapid increase to the establishment of SMEs in Zambia, most of them are
performing below expected potential of reducing poverty and enhancing economic
growth due to lack of financing. Therefore, it is not clear whether the undertaken
measures to strengthen SMEs have significant contributions in reducing poverty,
sustainable development, economics growth or not. These SMEs seem to be not
economically and financially expanding hence contributing very little in achieving
sustainable development development in Zambia. The proposed study therefore aims at
examining the role of microfinance towards small and medium enterprises. Possible
solutions to improve the role microfinance institutions played towards small and medium
enterprise development will be suggested whereby if implemented would cause small
business development emanating from microfinance institutions.
1.3 Purpose of the study
The purpose of the study is to examine the impact of microfinance services towards the
growth and development of small and medium enterprises in Zambia.
1.4 Objectives of the Study
1.4.1 Main Objective
 To examine the impact of microfinancial services on small and medium
enterprises in Zambia
1.4.2 Specific Objectives
The following are the specific objectives of this study
i. To examine the impact of Microfinance services towards the growth and
development of small and medium enterprises
ii. To examine the spread and performance of micro finance institutions.
iii. To examine the level of the growth and development of microfinance
institutions in Zambia

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1.5 Research questions
The study will seek to answer the following question.
i. What is the impact of Microfinance institutions towards the growth and
development of small and medium enterprises?
ii. What is the level of spread and performance of Microfinance institutions
1.6 Delimitation of the study
The research study will be confined to Lusaka district of Zambia.
1.7 Limitaation of the Study
The researcher has been given a specific time frame to conduct his study. He is also self-
sponsored.
1.8 Significance of the study
The study is significant to the growth and development of SMEs as it will highlight major
problems, which SMEs are likely to encounter when trying to source for funds for
business operations, interest rates, infrastructure, start-up capital, expansion of business
and how they can overcome them. It is also beneficial to financial institution as it will
help them to understand the dilemma in which the business community finds itself in as it
tries to access funds for its business from them. This understanding hopefully, will enable
the financial institutions to design their lending schemes that will be suitable to the small
businesses, given their contribution to the economic development of a nation.
1.9 Theoretical framework
This study is based on Theory of Change (TOC)-based approach to M&E, impact
assessment by Weiss, C.H. (1995).  The classic microfinance theory of change is simple:
poor person goes to a microfinance provider and takes a loan (or saves the same amount)
to start or expand a micro enterprise which yields enough net revenue to repay the loan
with major interest and still have sufficient profit to increase personal or house hold
income enough to raise the person’s standard of living. The theory of change provides a
model of how a program or business can be supported and led to growth through proper
financial support that increases performance of small business. In other words it provides
a road map of the development of a small business to a large productive business.
According to Weiss, C.H. (1995), the idea of the ToC approach seems to have first
emerged in the United States in the 1990s, in the context of improving evaluation theory
and practice in the field of community initiatives. Yet the “current evolution draws on
two streams of development and social program practice: evaluation and informed social

5
 practice (Vogel, I.2012). From the evaluation perspective, ToC is part of broader program
analysis or program theory.

1.10 Operational Defintion of Terms

Microfinance: the financial services provided to low-income individuals or groups
who are typically excluded from traditional banking. 
Small & Medium Enterprises: Small-size enterprises are companies with fewer than 50
employees, and medium-size enterprises are ones with fewer than 250
employees.
Entrepreneur: a person who sets up a business or businesses, taking on financial risks
in the hope of profit

6
 CHAPTER TWO
REVIEW OF RELATED LITERATURE
2.0 Introduction
This chapter presents literature related to the topic of study and ends with a summary to
give an overview of the chapter. A review of the literature will determine the impact of
divorces on the children in Chilenje township of Lusaka district.
Microfinance
Microfinance institution is an institution that provides financial service to low income
clients who would traditionally lack access to banks and related services, (Georgia, 2001).
A bank on the other hand is an organization usually a corporation/ chartered by a state or
federal government which does most deposits and time deposits and honors’ instruments
drawn on them, and pays interest on them; discounts notes, makes loans and invests in
securities; collects checks, drafts and notes; certificates depositors checks; and issues,
drafts and cashier’s checks, (Rukol, 2005).
Microfinance is often defined as financial services for poor and low-income clients. In
practice, the term is often used more narrowly to refer to loans and other services from
providers that identify themselves as microfinance institutions. (MFIs). These institutions
commonly tend to use new methods developed over the last 30 years to deliver very small
loans to unsalaried borrowers, taking little or no collateral. These methods include group
lending and liability, pre-loan savings requirements, gradually increasing loan sizes, and
an implicit guarantee of ready access to future loans if present loans are repaid fully and
promptly.
In addition to the definition above, Azevedo‘s (2007) adds another dimension: the
rationale for the provision of microfinance services. The term microfinance refers to the
provision of financial services for low-income households and micro entrepreneurs (both
urban and rural) for productive purposes‘ (ibid: 301). However whether microfinance is
always provided for productive purposes is debatable
Sinha (1998) states, "Micro credit refers to small loans, whereas micro finance is
appropriate where NGOs and MFIs supplement the loans with other financial services
(savings, insurance)" therefore micro credit is a component of micro finance in that it
involves providing credit to the poor, but micro finance involves additional non-credit
financial services such as savings, insurance, pensions and payment services (Okiocredit,
2005). The provision of micro finance services focuses on three core dimensions of
poverty alleviation. These are centred on the terms "Promotion" (promotion of individuals

7
and households out of poverty) and "Protection" (protection of people from vulnerability
because of fluctuations of income) Rogaly (1999).
According to Garner(1996) the object of microfinance institutions is a world in which as
many poor and near poor households as possible have permanent access to an appropriate
rate of high quality services, including not just credit but also savings, insurance and
fund transfers, those who promote microfinance institutions have believed that such
access of poor or near poor people to an appropriate rate of high quality financial
services of credit and savings will help poor people out of poverty and lead to rural
development ( Agarwal, 1990). Through micro finance, many businesses have now tried
to stabiles in all parts of Uganda and towns have also grown which has boosted trade in
areas like Kampala, Mukono, Wakiso, Mpigi, Jinja, Mbarara among others. The growth
of the country in terms of production has also increased and today the county has joined
international trade with other countries as well as joining other international integrations
(BOU 2010).
Microfinance has gained global acclaim as an important poverty reduction tool in many
developing countries (Johnson and Rogaly, 1997; Gibbons and Meehan, 2002;
Armendariz de Aghion and Morduch, 2005; Copestake, Greeley, Johnson, Kabeer and
Simanowitz 2005; Bakhtiari, 2006). According to Morduch (2000), few recent
innovations have held much hope for reducing poverty in developing countries as
microfinance. Indeed microfinance is perceived as a crucial driving mechanism towards
achieving the millennium development target of halving extreme poverty and hunger by
2015 (Simanowitz, 2002; Fernando, 2004; Arun, Imai and Sinha, 2006). Mohammed
Yunus1 even described microfinance as a human right. According to leading advocates in
the field, microfinance has the capacity to efficiently and effectively provide sustainable
financial services to poor households who are otherwise excluded from the conventional
financial systems for lack of collateral. Casting aside the euphoria on microfinance, a
sober question can be asked does microfinance really reduce poverty through enhancing
investment in small enterprise?
They portray the common conception of microfinance: financial services that formal
institutions provide for the poor. Seibel (1999) and Wright and Rippey, (1999) challenge
these definitions and argue for a more inclusive view of microfinance. They contend that
microfinance should be more inclusive and should take into consideration informal
financial arrangements such as moneylenders and financial support from relatives which
constitute an important source of financial assistance for the poor. Although informal

8
financial services are technically part of microfinance, the term is generally known and
used to refer to the provision of financial services to the poor by formal institutions such
as the FINCA. Some scholars prefer to use the term institutional microfinance‘ to refer to
microfinance excluding informal financial services. For instance, when Robinson (1995)
advocates the movement of microfinance away from subsidised credit to financial
intermediation on commercial basis, it is with reference to financial services provided by
formal institutions.
The Consultative Group to Assist the Poorest (the apex association of international donors
who support microfinance) regards microfinance as a powerful tool to fight poverty that
can help poor people to raise income, build their assets and cushion themselves against
external shocks. (CGAP, 2004a:1). Microfinance is defined here in relation to its users -
rather than in relation to other forms of finance - as the supply of savings, credit,
insurance and payment services to relatively poor people.
Small enterprise development
Small enterprise Development according to Henkin (1997) is a progress of positive
change quantitatively and qualitatively of a business.
According to Henkin (1997) many people define it in their own context according to thin
surroundings and immediate needs; the definition in Africa may not be the same as in
Europe but there are key components of the definitions that are similar everywhere.
According to Dee (2002), small enterprise development is a process by which a business
owner is inspired through their institutions in ways that enhance their ability to mobilize
and manage resource sustainability to produce sustainable and justify distributed in
procumbent in their quality of life consistent with their aims and aspirations.
Small enterprises are in urban townships and rural areas comprised of farmers, farmers
groups and enterprises have very little collateral (Johns tone, 2002) and no formal credit
history (Black, 2001) and are thus considered risky investments by traditional banking
institutions, (Malindini, 2004). Microfinance institutions help urban small businesses,
family farms for rural poor farmers and farmer groups as well as rural enterprises
overcome this challenge to running their operations and building their assets through a
variety of creative financial solutions, (Ongwen, 1994). In Mongolia for example
microfinance institutions have helped fund 460 loans totally more than $1.2. Million; half
have been repaid in fall, (Machili, 2001). In Guatemala 4000 farming households are
farming 50 villages, banks to increase access to credit. (GMFP, 2002).

9
In Nepal, mercy corps (an NGO) supports 10,000 clients especially women and poorest
households by teaming with the country’s largest microfinance providers to expand
financial services in remote area and develop savings and loan products for agriculture,
(mercy Corps, 2004). In Ethiopia the microfinance ministry plans to expand financial
services into never, served areas potentially touching tens of thousands of farming and
related agribusinesses, (EMMF, 2004). However, all these researches did not put any
emphasis on Uganda the country of this study. There could be other ways microfinance
institutions lead to rural development in Uganda thus the need for this proposed research.
Weine, (1991) has also stated that at microfinance institutions provide small scale
enterprise loans like agricultural loans are available for a multitude farming purposes.
According to Whyte (1986) farmers may apply for loans to buy inputs for the cultivation
of food grain crop as well as for horticulture, aquaculture, animal husbandry, and
floriculture and sericulture business.
According to Perpin (1960), there are also special loans to finance the purchase of
agricultural machinery such as tractors, harvesters at microfinance institutions. Lwakatare
(2004) has also stated that at microfinance institutions construction of biogas plants and
irrigation systems as well as the purchase of agricultural land may also be financed
through special types of agricultural finance. There is need to find out how rural
agricultural farmers in Zambia use the loans they borrow which is another reason for the
proposed research.
According to Smillie (1995) also there are currently a few social interventions that have
been combined with micro financing including the increase of HIV/AIDS awareness.
According to Smillie (1995) an example of this is seen in Botswana where there is the
intervention of microfinance in issues like AIDS and equity which is a participatory
program that advocates on different gender roles. Gender based violence (GBV), and
HIV/AIDS infections to strengthen the communication skills and leadership of women.
Also, According to Willets (1996). Microfinance has been combined with other social
interventions of business education and with other packages of health interventions that
have led to small enterprise development. (Retus, (1995) has cited that innovation for
poverty action program me of Peru where borrowers randomly received financial training
as part of their borrowing group meetings such interventions by microfinance services
leading up to small enterprise development.

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Conceptual frame work

Figure 1: Conceptual Framework

Independent Variable Dependent Variable
Microfinance services Small enterprise growth
Expansion of operations
 Loans provision
Increased productivity
 Fixed deposite rates
Increased profits
 Advisory services Increased decision making efficiency
 Training

Intervening factors
Economic factors
Government intervention
taxation

Source. Daily Monitor ( 2010)

The above conceptual frame work describes the relationship between the independent
variable and the dependent variable. The frame work further presents the intervening factors
that can also impact or determine the dependent variable.
The performance of microfinance services is the independent variable and this involves
factors such as provision of loans, Fixed deposite rates interests rates, advisory services and
training to people to enable to effectively use these funds. The services provided by the
microfinance institutions determine the growth and development of small enterprises. This
therefore means that the growth of the small enterprises depend on the services delivered by
microfinance institutions and the growth is expressed in terms of size of the enterprise, level
of profits, efficiency and increase in the level of productivity.
According to the frame work, the small enterprise is not only impacted on by the services of
microfinance institution but also impacted on by other factors such as the government factors
like taxation and economic factors which are essential determinants of the success of
activities.

11
CHAPTER THREE
METHODOLOGY
3.0 Introduction
This chapter outlines the methods adopted in order to answer the research questions

detailed in chapter one. It looks at the research design, research population, sampling

techniques, data collection instruments, methods and procedure of data collection, mode

of data analysis and presentation as well as ethical consideration and limitations of the

study.

3.1 Research design.

The research will be a descriptive cross sectional survey design where data is collected
from a cross the population at one point in time. This design is cheap, less time
consuming and easy data collection and analysis (Amin 2005). Both qualitative and
quantitative data collected were used during the data collection.
3.2 Research Population.
The target population of this study will consist of 80 respondents having small scale

enterprises and those working in the micro finance enterprise. 50 respondents shall form

the small enterprises in while the 30 respondents shall be from the microfinance

institutions

3.3 Sample size

Slovene’s formula will be used to compute the sample size. This formula will be

employed so as to sample fairly a large size as representation of the total population such

that the research findings obtained can be considered valid. The details on the

determination of sample size using Slovene’s formula are shown below:

By using Slovene’s formula n = N/(1+ Ne2)

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 n - Sample size

N - population size

e - level of significance

N - 80

1+0.2

n = 80/1. 2 = 66.66 = 67

Sample size for small enterprises respondents

n = 50 X 80=2= 42
80
Sample size for microfinance enterprises
N = 30x67 = 25

80

Table1. Population and sample size table.

Categories Population Sample size

Small scale enterprises 50 42
Microfinance institutions 30 25
Total 80 67

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3.4 Sampling procedures
This study will use a technical of stratified random sampling .The respondents of this
study are divided into two categories 5o work in small scale enterprises, 30 work in
microfinance institution.
3.5 Research Instruments
This study will use questionnaires, guided interviews, guided observation, and record
sheets .This is because of the nature of data to be collected, the time available, as well as
by the objectives of the study. The overall aim of this study is to evaluate the relationship
between microfinance services and growth of small enterprises. The researcher will be
concerned with views, option, perception and feelings from the environment. Such
information will be corrected through the questionnaires, and interviews, and because the
study will be conversed with variable that cannot be directly observed.

The sample size is also quite large, and given the time constraints and target population is
literate and unlikely to have difficulties in responding to questionnaire items,
questionnaire is ideal tool for collecting data.

3.5.1 Questionnaires
Questionnaires will be used to determine: the level on the performance of
microfinance services on growth of small enterprises. The questionnaires will be self-
administered and closed ended so as to save time and enable respondents to give
relevant choice since different options will be given. This method of data collection is
preferred for this study because it gives freedom to respondents to give their truthful
opinions since there will be no one to challenge their answers as it is in the case of
interviews. This will give a complete confidence to respondents to effectively answer
questions asked without feeling shy or being scared. The scoring system of this
instrument will be based on the five scales or Likert type scale of rating involving:
1 = very low, 2 = low, 3 = moderate, 4 = high, 5 = very high.
3.6 Validity and Reliability of the instruments
3.6.1 Validity

14
 To insure the validity of the questionnaire and interview guide; some two experts in
research will be involved. In this regard, after constructing the questionnaires and
interview guide, they will be submitted to two experts to ensure their validity through
their duties ‘basis. This will be based on alpha coefficient value of 0.7 and more.
Thus, after the expert judgments, the compilation of the responses from raters will be
computed to determine the content validity index (CVI). If the coefficient computed is
from 0.7 and above, the instruments shall be considered to be valid but if it is less, the
instruments shall be considered to be invalid so new ones shall be made.
3.6.2 Reliability
To ensure the content reliability, the research will use either the test-retest method or
cron batch alpha, method for the two tests, results will be analyzed using peason’s
correlation coefficient (PLCC) and the T-test for PLCC if the significance will be
equal or inferior to 0.05 then instrument will be reliable for T test, if significance will
be equal or greater than 0.05, the instrument will be reliable.
3.7 Data Analysis
During this process of data analysis, the researcher will use frequencies and percentage
distribution to analyze data on profile of respondent .Mean and standard deviation will be
used to determine the level of performance of small enterprises. Items/respondents answer
analysis will help to demonstrate strength and weakness of respondents on the
microfinance and growth of small enterprises.
Numerical values and the interpretation will be used to interpret the response based on the
mean score, for each item question both microfinance and growth of small enterprises.
3.8 Ethical considerations
The researcher will seek for authorization from potential respondents. The researcher will
ensure free will consent from participants. The names or identifications of the
respondents will be anonymous and information collected from them treated with utmost
confidential

15
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18
APPENDIX I: QUESTIONAIRE
DEMOGRAPHIC CHARACTERISTICS OF THE RESPONDENTS
I am Yona Phiri a student at Chalimbana University pursuing a Bachelors of Business
Administration in Accounting and Finance, currently carrying out a research study on the role
of microfinance finance services and the growth of small enterprises taking Finca Uganda as
my case study. I therefore seek your cooperation for the success of this research by kindly
filling and returning this questionnaire. The information given will be strictly confidential
and only be used for academic purpose.
Thank you in advance for giving me your time.

Gender (Please Tick):

(1) Male (2) Female Age
………..

Qualifications Under Education Discipline (Please Specify):

(1) Certificate_______________________
(2) Diploma _______________________
(3) Bachelors ______________________
(4) Masters ______________________
(5) Ph.D. _______________________
Other Qualifications other than education discipline ___________________
Number of Years Working Experience (Please Tick):
(1) Less than/Below one year (2) 1- 2yrs (3) 3-4yrs
(4) 5-6yrs (5) 7 years and above
What type of business do you have?
a) One or sole proprietorship business
b) Partnership
c) Limited Company

Section B

19
Performance of microfinance services
Instruction: Honestly indicate or show your opinion regarding the level of microfinance

services in your area.

Tick the right number corresponding with each item key:

1 - very low 2 - low, 3 - moderate 4 - high 5 - very high.

Micro finance services

How many microfinance institutions do you know, Name them:

There are many micro finance services provided by these microfincial 1 2 3 4 5

providers

The microfinancial providers are providing small financial support

1 2 3 4 5
like loans to people who do not have access to big investments or

loans

These institutions are very active and many poor people have on 1 2 3 4 5

several occasions accessed loans from them

These microfinancial providers not only provide loans but also advice
1 2 3 4 5
to the people that are need of these funds. The advice can be regarding

the use of the funds as well as better business management

The Microfinancia providers have provided employment to the natives 1 2 3 4 5

or local people

20
The microfinancial providers provide support through buying the 1 2 3 4 5

small enterprise produce

The microfinancial providers have positively enhanced development 1 2 3 4 5

of small businesses

The services of these institutions are mainly targeting the poor 1 2 3 4 5

Performance

The organizations have provided quality and efficient services 1 2 3 4 5

towards the boosting of small scale enterprise development

The institutions are located near the people and in rural areas to ensure
1 2 3 4 5
easy accessibility to the services.

The performance of these organizations are highly impacted on by the

1 2 3 4 5
government factors and requirements.

They are also affected by the willingness of the people to use the
1 2 3 4 5
services.

Some of the people do not know the role of these institutions and it is
1 2 3 4 5
because of lack of capacity building and the fact that most of them

never went to school.

The institutions have been able to deliver and take a step towards 1 2 3 4 5

small enterprise growth

The institutions are however challenged by a number of factors and 1 2 3 4 5

constraints such as lack of trust from the natives and the political

21
issues in the country

All in all the microfinancial providers have not covered a wide area
1 2 3 4 5
due to the road network in the country

Section C
Small Scale Enterprise
Micro finance and Small Enterprise

The microfinancial providers services are growing fast in towns 1 2 3 4 5

occupied with trade and commerce.

Towns area full of small scale enterprises that are privately owned by 1 2 3 4 5

the natives.

Small enterprises are operating on a small scale with capital and

1 2 3 4 5
finance from the sole owners of the enterprises

They are (Small Enterprises) mainly providing or dealing in

1 2 3 4 5
necessities

Most of the owners of these enterprises have always got support from
1 2 3 4 5
financers the microfinancial providers in the area

The small enterprises are usually operating on a small scale 1 2 3 4 5

They are characterized with having a single owner who largely gains

from them

Small enterprises have highly expanded and increased in number and 1 2 3 4 5

this has solved the unemployment problem

22
Section D
Microfinance services on small enterprises

Impact of microfinance services on small enterprises

Microfinance has largely contributed to the introduction of new small

1 2 3 4 5
enterprises.

Microfinance has provided financial support to small enterprises and

1 2 3 4 5
this has led to their expansion

Microfinance has been the major source of capital for the small scale 1 2 3 4 5

enterprises in the region

It has provided advice and also developed new ideas for survival in
1 2 3 4 5
rural areas

Microfinance institutions have provided investments to ideas of young

1 2 3 4 5
entrepreneurs leading to establishment of new small enterprises

The institution provide support through offering small affordable 1 2 3 4 5

loans to the local people

It provide achievable standards inform of advice to business owners

1 2 3 4 5
on how to manage business

The development of small enterprises has increased because of the 1 2 3 4 5

support from the Finca Uganda

The institution have not effectively improved or led to growth of the 1 2 3 4 5

small enterprises.

23
The services of the microfinance have not effectively been used by
1 2 3 4 5
many natives due to ignorance about their existence

The institutions are also challenged by the large financial institutions 1 2 3 4 5

such as the commercial banks that also offer the same services

Thank you for your support

24
 APPENDIX II PROPOSED BUDGET
Particular Quantity Amount (ZMW)

Bond Paper 5 Reams 500

Ink 1 Cartridge 200
Binding materials 10 300

Transport costs 600

Data Analysis 400

Up keep 300

Miscellaneous 200
APPENDIX III:
Total 2500=00
TIME FRAME
Duration: Three
Months

Activity April May June

Week Week
1 2 3 4 1 2 3
Planning, and preparatory work
including designing of interview
schedules, questionnaire and other
control forms
Field survey

Making appointments with Small

and mediam entreprises,
Microfinance institutes etc.
Field Data collection

Data processing including coding,

data entry and analysis
Drafting and finalization of report

25
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