Strategies to barriers of financial inclusion for youth-owned Micro businesses in Wakiso Metropolitan District in Uganda

Abstract

The study examined the barriers to strategies of financial inclusion in Uganda. It was based on research objectives; to find out the state of financial inclusion for youth owned micro businesses in Wakiso metropolitan district, to identify barriers to financial inclusion for youth owned micro businesses in Wakiso metropolitan district and to suggest strategies for financial inclusion for youth owned micro businesses in Wakiso metropolitan district. The study adopted a cross-sectional survey design using 200 respondents as study population and 132 respondents as sample size. The study used both questionnaires and interviews guide to come up with the following findings below; The study revealed that majority 71.2% held different forms of accounts such as; savings, fixed deposit and current accounts, however 28.8% do not hold any account with any bank. Majority 62.5% agreed that their employment status influenced their access to bank services such as loans and overdrafts, this was supported with a reason that their salaries guaranteed acquisition of loans because they acted like security, however 37.5% of the respondents disagreed with reasons that their employment status do not reflect the salaries and wages they earn majority argued that to acquire loans from banks they must have properties as securities/collateral and not their employment status. Table 4.12 showed that majority 72.1% disagree that income of respondents plays a role in your use/access of these services; however, 27.9% agree that their income plays a role in your use/access of these services. Majority 63.5% of the respondents instead argued that bank charges negatively affected the access to bank services, 36.5% agree that bank charges play a role in accessibility to loans or fixed earnings on deposits by the bank. In conclusion, the number of savings products offered by financial institutions can greatly impact on a person’s willingness to save, access to the savings and that customers always considered security when choosing a mode of saving for financial inclusion, reaching out to the community through holding regular seminars improves the saving culture, encouraging financial inclusion ensures security, convenience and market returns for micro-business. The study recommends that the ministry of trade and cooperatives should fund savings mobilization oriented activities for financial inclusion. Savings are important for any economy as earlier pointed out.