Access to microcredit by business women groups case study: Letshego Microfinance Uganda Limited, Kireka Branch

Abstract

Microfinance is a tool used by many financial institutions that come up with the idea to empower women and bring them out of poverty. Usually, many microfinances operate in communities, which are highly populated, with many women engaged in small businesses but without collateral to give as security to acquire loans in commercial banks. Therefore, micro financial institutions often target such women. The purpose of the study was to assess the factors affecting access to microcredit among businesswomen groups that bank with Letshego Microfinance Uganda Ltd. specifically the study set out: to establish the factors that determine access to microcredit among business women groups in Letshego Microfinance Uganda Ltd; to examine the challenges facing business women groups in accessing microcredit from Letshego Microfinance Uganda Ltd; and to suggest strategies for improving access to microcredit among business women groups in Letshego Microfinance Uganda Ltd. The research used a case study design and adopted the qualitative approach. Primary data was collected from focus groups discussion constituted of women who are the customers of Letshego and Key informants using in-depth interview guides. Key informant included women leaders, Loan officers, local councils, and Branch Manager. The findings revealed little effort in access to financial services by businesswomen. Women still face many obstacles to get access to these services such as hindrances from their husbands who stop them from joining women groups, and family responsibility which is a great burden to the women. Therefore, the study noted that there is more need to sensitize the household unit about the presence of microfinance and engage men about the benefits of microfinance.