Microfinance Services and the Clients’ Socioeconomic Wellbeing During the Covid-19 Pandemic in Uganda
Abstract
Microfinance is reported to be an effective tool of empowerment for vulnerable and marginalised groups, especially women. This study set out to investigate the relationship between microfinance services and the clients’ socioeconomic wellbeing during the Covid-19 pandemic in Uganda. The study involved 73 employees of microfinance institutions that deal directly with the clients. The study findings revealed that while no significant relationship exists between microfinance services and clients’ socioeconomic wellbeing, there is a significant moderate positive relationship between microfinance client protection policies and the clients’ socioeconomic wellbeing. The regression model revealed that a unit increase in client protection policies increases the socioeconomic wellbeing of microfinance services beneficiaries by 72%. It is recommended that microfinance institutions integrate client protection policies in their activities in line with their known social mission
Downloads
References
Abrams, J. (2021). Crisis road map for microfinance institutions: COVID-19 and beyond. CGAP/World Bank,2021.
Al-Shami, S. S. A., Majid, I. B. A., Rashid, N. A., & Hamid, M. S. R. B. A. (2014). Conceptual framework: The role of microfinance on the wellbeing of poor people cases studies from Malaysia and Yemen. Asian Social Science, 10(1), 230.
Armendáriz, D. A., & Morduch, J. (2005). The Economics Microfinance. UK: Cambridge, MA: The MIT Press. CGAP (2013).
Bauwin, B. (2019). Social Performance Management in Microfinance: Practices, Results and Challenges. ADA.
Busingye, J., & Kazooba, C. (2018). Micro credit and women empowerment: A case of female headed households in Uganda. International Journal of Sciences: Basic and Applied Research, 58-69.
Dhakal, C., & Nepal, G. (2016). Contribution of Micro-Finance on Socio-Economic Development of Rural Community. Journal of Advanced Academic Research, 3(1), 134-141.
Gupta. (2014). Who Takes the Credit? Gender, Power, and Control over Loan use in Rural Credit Programs in Bangladesh. World Development, 24(1), 45-63.
Hamdan, H., Othman, P., & Hussin, W. (2012). The importance of monitoring and Entrepreneurship Concept as Future Direction of Microfinance in Malaysia: Case Study in State of Selangor. Journal of Global Entrepreneurship, 3(1).
Kamiza, P., & Kizza, J. (2019). Microfinance products and socioeconomic growth of enterpreneurs in Uganda: A case of enterpreneurial clients of Pride Microfinance. Social Science and Humanities Journal, 03(01), 785-800.
Dąbrowska, K., Koryński, P., & Pytkowska, J. (2020). Impact of COVID-19 Pandemic on the Microfinance Sector in Europe: Field Analysis and Policy Recommendations. Microfinance Centre (MFC).
Kizza, J., & Ssekibaamu, A. (2019). The contribution of Luweero teachers’ saving and credit cooperative organisation to teh socioeconomic welfare of teachers in Luweeo district, Uganda. International Journal of Social Science and Economic Research, 04(09), 6149-6178.
Kizza, J., Kasule, W., Amonya, D., Nakimuli, L., & Komugabe, A. (2021). Perceptions Towards the Effectiveness of E-Learning in Private and Public Universities in Uganda: A Comparative Study. East African Journal of Arts and Social Sciences, 3(1), 156-169.
Magner, M. (2007, March). Microfinance: A Platform for Social Change. Grameen Foundation Publication Series. Grameen Foundation Publication Series. Retrieved October 20, 2021, from https://www.findevgateway.org/sites/default/files/publications/files/mfg-en-paper-microfinance-a-platform-for-social-change-2007.pdf
Darin-Mattsson, A., Fors, S., & Kåreholt, I. (2017). Different indicators of socioeconomic status and their relative importance as determinants of health in old age. International journal for equity in health, 16(1), 1-11.
Mayoux, L. (1999). Questioning virtuous spirals: micro-finance and women’s empowerment in Africa. Journal of International Development, 11(7), 957-984.
Mokhtar, S. H. (2011). Microfinance Performance in Malaysia. Doctor of Philosophy, Lincoln University, New Zealand. Retrieved from http://hdl.handle.net/10182/4186
Murad, A., & Idewele, I. O. (2017). The impact of microfinance institution in economic growth of a country: Nigeria in focus. International Journal of Development and Management Review, 12(1), 1-17.
Muzee, H., Kizza, J., & Mugabe, G. M. (2021). Organisational Compassion and Employee Engagement in Virtual Work Environments during Covid-19 Lockdown in Uganda and Rwanda. International Journal of Management, Knowledge and Learning, 10, 127-137
Nawai, N., & Shariff, M. (2012). Factors affecting repayment performance in microfinance programs in Malaysia. Procedia -Social and Behavioral Sciences, 62(24,806).
Postelnicu, L., & Hermes, N. (2018). Microfinance performance and social capital: A cross country analysis. Journal of Business Ethics, 153(2), 427-445.
Rahman, A. (1999). Micro-Credit Initiatives for Equitable and Sustainable Development: Who Pays? World Development.
Sigalla, R., & Carney, S. (2012, July 01). Poverty reduction through entrepreneurship: Microcredit, learning and ambivalence amongst women in urban Tanzania. International Journal of Educational Development, 32, 546-554.
Sinha, F. (2006). Social rating and social performance reporting in microfinance: Towards a common framework. The SEEP network.
Tavakol, M., & Dennick, R. (2011). Making sense of Cronbach’s alpha. International journal of medical education, 2, 53.
ZZamore, S., Beisland, L. A., & Mersland, R. (2019). Geographic diversification and credit risk in microfinance. Journal of Banking & Finance, 109, 105665.
Zheng, C., & Zhang, J. (2021). The impact of Covid-19 on the efficiency of microfinance institutions. International Review of Economics and Finance, 71, 407-423.
Copyright (c) 2021 James Kizza, PhD
This work is licensed under a Creative Commons Attribution 4.0 International License.
