Paper
An Assessment of the Impact of Microfinance Services in Uganda: Baseline Findings
Studying the impacts of microfinance programs on clients, households, and enterprises in Uganda
279 pages
This report presents findings, conclusions, and recommendations from a baseline survey conducted by USAID/Uganda in 1997, on the impact of microfinance services on clients, their households, and enterprises. The survey examined if participation in a microfinance program leads to improvements in the economic welfare of households, enterprise growth or stability, increases in empowerment of women, and strengthened social networks with rural areas.
The study included three MFIs that use best practices, namely, Foundation for Credit and Community Assistance, (FOCCAS), Foundation for International Community Assistance (FINCA), and Promotion of Rural Initiatives and Development Enterprises (PRIDE), Uganda. Conclusions include:
- Microfinance programs reach low-income households in both rural and urban areas;
- Savings, enterprise earnings, and loan funds are used to expand the wealth base of households and enterprises;
- Microfinance programs operating in urban and rural areas reach microentrepreneurs who have strong linkages to the agriculture sector;
- Microenterprises are the main source of household cash income;
- Microfinance programs enable female entrepreneurs to develop financial management, decision-making, and leadership skills;
- Clients tend to be significantly different from non-clients in several ways.
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