A research proposal on the Impacts of Microfinance in Kenya
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A research proposal on the Impacts of Microfinance in Kenya

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A research proposal on the Impacts of Microfinance in Kenya A research proposal on the Impacts of Microfinance in Kenya Document Transcript

  • MICROFINANCE AWARENESS AND IMPACT IN KENYA: A CASE OF NAIROBI COUNTY By Fred M’mbololo Page 1
  • Table of Contents 1. Background of the study.............................................................................................. 3 1.1 Statement of the problem ....................................................................................... 7 1.2 Conceptual Framework .......................................................................................... 9 2. Industry background .................................................................................................. 11 2.1 Significance of the study ...................................................................................... 11 3. Research aim, research questions or hypotheses and objectives ............................. 13 3.1 Research Aim ...................................................................................................... 13 3.2 Research questions ............................................................................................. 13 3.3 Hypothesis ........................................................................................................... 13 3.4 Objectives ............................................................................................................ 13 3.5 Assumptions of the study ..................................................................................... 14 3.6 Limitations of the study ........................................................................................ 14 3.7 Delimitations to the study ..................................................................................... 15 4. Proposed methodology ............................................................................................. 17 4.1 Research Design ................................................................................................. 17 4.2 Population and Sampling Design ......................................................................... 18 4.3Sampling Design ................................................................................................... 18 5. Timescale .................................................................................................................. 20 6. Resources ................................................................................................................. 21 7. References ................................................................................................................ 22 By Fred M’mbololo Page 2
  • 1. Background of the study (Literature Review) The need for development that saw the Kenya develop several strategies and plans such as the vision 2030 and the millennium development goals has led to development of the finance sector. The need for financing of the development projects has developed microfinance institutions in the country. Microfinance has received a lot of attention since its inception in the early 1970s perhaps, as argued by (Okio credit, 2005: 30-32) Because of the ability of microfinance to reduce poverty alleviation and enhance economic development by providing credit and savings services to those people earning low incomes. The attention has seen development of different definitions to microfinance. Otero, (1999: 8) says in essence that microfinance is ‘the provision of financial services to low-income poor and very poor self-employed people’. Schreiner and Colombet, (2001) on the other hand define microfinance as ‘the attempt to improve access to small deposits and small loans for poor households neglected by banks.’ Independent of the definition provided to microfinance it is a general agreement in the economic field that micro financing alleviates economic development. The money or funds that are provided by microfinance institutions in terms of credit and micro loans enables those who are poor to invest into productive acitivities that are bound to earn them income helping them boost their economic level and alleviate poverty in the entire economy. Microfinance institutions therefore are an opportunity for sustainable development. The extent opportunities available to generate income and the ability of citizens to respond By Fred M’mbololo Page 3
  • to the available opportunities are to a large extent determined by the degree or ability to access financial services that are affordable. Microfinance being able to provide such financial services is being pursued by every economy worldwide. Initially microfinance aimed at providing donor finances and financing experimental projects. This has developed to financial institutions that provide a wide range of services and several routes to opportunities that are significant for economic development and expansion (Khan, 2005: 131-142). The concept of microfinance in most instances has been used interchangeably with microcredit imploring that they have the same meaning. However microcredit and microfinance are two different concepts. In an attempt to explain the difference between microcredit and microfinance. Sinha, (1998: 2) states that, “microcredit refers to small loans, whereas microfinance is appropriate where non-governmental organizations (NGOs) and microfinance institutions (MFIs) supplement the loans with other financial services (savings, insurance, etc.)”. This definition indicates that microcredit is part of microfinance since it involves providing credit to the poor. Microfinance is an overall concept as it involves both credit and non-credit financial services such as insurance, savings, pensions and other payment services. Microfinance institutions, given the nature of their objective of ensuring that the prop are able to access financial services, operate in several models. The most commonly identified models of operations of microfinance institutions include the Rotating Savings and Credit Association (ROSCAs), the Grameen Bank and the Village Banking models. By Fred M’mbololo Page 4
  • Rotating Savings and Credit Association are formed when a group of individuals come together and form an agreement to make regular cyclical contributions with an aim of developing to a common fund. After some period of specified time the lump sum of the contributions is given to one member of the group in each cycle. Schreiner, (2010: 112-119), argues that this model is a very common form of savings and credit. The solidarity group model is based on based on group peer pressure. Loans are made available to individuals who are in organized groups of four to seven peoples (Berenbach, Shari and Guzman, 1994) The advantage of being in groups is that the members collectively guarantee loan repayment. They are therefore able to access subsequent loans depending on successful repayment by all group members. These payments are usually made after a specific period of time, usually one week (Ledgerwood, 1999: 137). This model of micro financing is the most commonly used by banks. It has proven to be more effective in the long run as there are few loan defaulters as each member of the group is a guarantor of the other. Berenbach et al, (1994) argues that, ‘solidarity groups have proved effective in deterring defaults as evidenced by loan repayment rates attained by organizations’. Village banking model are based on village banks which are normally communitymanaged. The banks are established and managed by credit and savings associations By Fred M’mbololo Page 5
  • established by NGOs to provide access to financial services, build community self-help groups, and help members accumulate savings (Schreiner, 2003: 118–136). This is perhaps the oldest model of micro financing, considering their formation in the mid-1980s. Usually these village banks normally consist of 25 to 50 members who majorly low-income earning individuals are seeking to improve their lives through selfemployment activities. In Kenya, the need for economic development has seen the development of micro finance institutions which in normal cases start as Chamas. Chamas are small groups of individuals, who come together, collect money in a pool through continuous contributions with an aim of accomplishing an investment objective. (Onumah, 2002) opine that the development of Chamas has led to the development of banks in Kenya. For example, equity bank developed from a micro finance institution where its major purpose was to help customers get mortgage loans for individuals who are low income earners in the society. It was initiated as equity building society (Coetzee, Kamau and Andrew, 2003). There has been other current deposit taking microfinance institutions in Kenya such as Rafiki and Jammii Bora who are also in the same path. The rapid development of micro finance institutions in Kenya has helped the country develop economically with the current rate standing at 5% improvement annually (CGAP, 2004). By Fred M’mbololo Page 6
  • This has shown that there are several impacts of the financial institutions to the economy. There are also business that were majorly part of the institutions that have flopped in the economy. Independent of the connection of economic development to these financial institutions many Kenyans residents are not members of the microfinance institutions, let alone being aware of their existence (Kodhek, 2003). It is in line with this background that the study wishes to determine the level of awareness and impact on microfinance institutions among the residents of Nairobi County. 1.1 Statement of the problem Microfinance institutions have been identified to be the major component to economic development. In her study on Rural Financial Services in Kenya: What is Working and Why? (Betty, 2006) possess that micro financing institutions have in a large extent helped the development of the Kenyan rural community; “microfinance institutions will continue serving the rural people and will transform themselves into community based microcredit units. This will most likely reduce unemployment in the rural areas”. Development practitioners and policy makers have as well identified efficient microfinance services as important for a variety of reasons; helping the poor manage their risks, build their assets, enhance their income earning capacity, be able to develop small enterprises to generate income, and these in turn will ensure improved life. Microfinance has also positive impacts on poverty alleviation and specific economic indicators such as nutrition status, women empowerment and children schooling. By Fred M’mbololo Page 7
  • Despite the several merits attributed to micro financial services, the level of poverty in Kenya is still high with 40% of Kenyans leaving below a dollar, businesses are performing poorly and this is indicated by the slow economic development of below 5%, many Kenyans are still not members of any microfinance institution. This may be attributed to lack of information on the positive impacts of micro financing and the lack of awareness by the general public on the existence of microfinance institutions and the services such institutions offer. Few studies have been done in Kenya revolving around microfinance. However none of these studies provide direct information on the impacts of microfinance institutions in Kenya. (Mjomba, 2011) studied the development of micro-finance in Kenya by specifically considering micro finance on financial empowerment of women in Kenya. This study though identified the impact of micro financing as empowering women positively, it majored on Kenya Women Finance Trust and was also bias to women only. Therefore it lacked evidence on other impacts of microfinances in Kenya. (Joy, 2007) carried out a similar study majoring on the impact of microfinance on rural development with a setting of Makueni County. Although this study was a great milestone to the studies on the field of impact of micro financing services, it narrowed down to poor households, income and poverty eradication. The setting was also rural. This study therefore lacks enough evidence to ascertain the awareness and impacts of microfinance in Kenya. Therefore, we remain unable to judge the validity of this By Fred M’mbololo Page 8
  • tentative explanation. That is, there remains insufficient empirical evidence to assess this claim. Several questions therefore remain unanswered. Who largely benefit from micro financing services? What is the level of awareness of microfinance services in Kenya? What are the impacts of microfinance in Kenya? What strategies are employed by microfinance institutions to ensure they meet their objectives? What kinds of policy questions do these findings raise for microfinance institutions and for national government? This study proposes to interrogate the data that will be collected in residents of Nairobi County in relation to these broad questions that are emerging around the issue of awareness and impacts of microfinance in Kenya, and suggests areas of purposeful focus for policy attention. 1.2 Conceptual Framework The literature review in this study will cover the previous studies that have been done on microfinance and its effects. However there will be need to have a clear understanding on microfinance which will call for concise definition to microfinance concepts such as microfinance itself, microfinance institutions, economic development and SACCOs. By Fred M’mbololo Page 9
  • Conceptual framework Levels of impact Types of Impact Household Economic Community Impact variable/indicator Economic variables Income Access to food Household assets Housing Social Human capital Skills Education Health Empowerment Confidence Social capital Social networks Social mobility By Fred M’mbololo Page 10
  • 2. Industry background The study will be carried out in Nairobi County. The respondents shall include the Nairobi County residents. Data will be collected from the Nairobi residents who form the population of this study, with an aim of determining their level of awareness to microfinance in Kenya and the impacts of microfinance in Kenya. 2.1 Significance of the study To the government In line with the ability of micro financing services to ensure economic development by providing savings and credit to low income earners, the government has been pushed to support the development of microfinance institutions. This has seen a lot of investment by the government in providing financial support to the microfinance institutions. The information from this study on the impact of microfinance may help the government in determining the viability of their investments. Microfinance institution’s management The microfinance institutions are formed with the objective of ensuring that low income earners have access to financial services. There are several Kenyans who fall under the bracket of low income earners. Microfinance institutions aim at ensuring that all these citizens who are low income earners are catered for in terms of provision of financial services. It is therefore necessary for the institutions to understand the perceptions of the citizens on the impact of the microfinance services they are offering and the level of awareness of the public on the existence of microfinance institutions and their services. By Fred M’mbololo Page 11
  • This information may be used by the management of the microfinance institutions in determining areas for improvement so as to ensure their success. Academicians/ researchers Little research has been done in sub-Saharan Africa to directly identify the impacts of microfinance. Considering the benefits attributed to microfinance institutions in economic development and the rapid development of these institutions, impact of microfinance has received attention of researchers and academicians. Therefore a study on the awareness and the impact of microfinance in Kenya, with major focus on Nairobi County, may therefore attract researchers and academicians who are in need of educating more and providing solutions to lack of access to financial services in subSaharan Africa. The information from the study will also form basis for literature for other researchers and academicians who are willing to carry out studies in the same field in Sub Saharan Africa. Next, the study will be a starting point for further studies on microfinance in Kenya. By Fred M’mbololo Page 12
  • 3. Research aim, research questions or hypotheses and objectives 3.1 Research Aim The aim of this study is to determine the level of awareness of microfinance services and the impacts of microfinance services to residents of Nairobi County. The objective is to come up with findings that may be used to make assertions on the awareness and impacts of microfinance in Kenya. 3.2 Research questions 1. What is the level of awareness of Nairobi County residents on microfinance institutions and the services they offer? 2. What are the impacts of microfinance to Nairobi County residents? 3.3 Hypothesis 1. Nairobi County residents are unaware of microfinance institutions within the county and the services such institutions offer 2. Microfinance has positive impact to economic and social development of Nairobi County residents 3.4 Objectives The specifics objectives of the study shall include 1. To determine the level of awareness to microfinance among Nairobi County residents By Fred M’mbololo Page 13
  • 2. To assess the level of development of microfinance institutions within Nairobi County 3. To assess the impacts of microfinance to Nairobi County residents 4. To determine the strategies employed by the microfinance institutions in Nairobi County to meet their objectives 3.5 Assumptions of the study The researcher makes the following assumptions regarding this study: 1. Respondents will answer the survey questions about the awareness and impacts of microfinance truthfully. 2. Respondents are familiar enough with the microfinance services to answer the survey questions. The researcher expects the entire exercise to move on smoothly relying on the maximum cooperation of all those who will be involved. That the sample will properly represent the population, the data collection instruments will have validity and will measure the desired parameters and that the respondents will truthfully and correctly answer questions. 3.6 Limitations of the study Limitations are potential weaknesses or problems with the study identified by the researcher. The limitations often relate to inadequate measures of variables, loss or lack of participants, small sample sizes, errors in measurement, and other factors typically related to data collection and analysis. These limitations are useful to other By Fred M’mbololo Page 14
  • potential researchers who may choose to conduct a similar or replication study (Creswell, 2005). The limitations of this study include; 1. The study involved the perception of residents on the impacts of microfinance. The data will be collected from individuals who are self-reporting their perceptions. 2. Perceptions of those who participated are not factual information and are biased based on the respondent’s own experiences and attitudes. 3. The geographical expanse of the study area, inadequate financial resources and time constraints may also reduce the chances of contacting more respondents. These limitations will be mitigated by making sure that, there is purposive sample selection, piloting and careful scrutiny of the perceived parameters of measurement in the microfinance institution, population and sample. 3.7 Delimitations to the study Delimitation narrows the scope of the study. The follow were delimitations of this study: write in prose not points 1. Participation in this study is voluntary. 2. The population was limited to microfinance institutions in Nairobi County 3. Respondents involved in the study were from the same large urban area By Fred M’mbololo Page 15
  • 4. There could be other impacts of microfinance that may not be exclusively addressed in this study. The study is bound to have a reasonable degree of success because the population and the sample are readily available in Nairobi County. The use of the SPSS programme in analyzing the collected data will be helpful in making reasonable deductions. Some of the respondents’ concerns connected with the impacts of microfinance will be quantitatively measured and appropriate records made. Such parameters will include number of people registered with the microfinance institutions and the number of microfinance institutions within the county. By Fred M’mbololo Page 16
  • 4. Proposed methodology 4.1 Research Design A cross-sectional descriptive research design will used in this study to investigate the impacts of microfinance in Kenya and the awareness of Kenyans on the microfinance institutions and their services. This design will be employed because data will be collected once. (Lokesh, 1984) insists that ‘descriptive research is designed to obtain pertinent and precise information status of the phenomena’. (Creswell, 2003) emphasize that ‘descriptive designs are used in preliminary and exploratory studies to allow the researcher to gather information, summarize, present and interpret for the purpose of classification.’ Descriptive research will be used in this study to obtain information on the current status of impacts of microfinance in Kenya so as to describe what exists with respect to variables or conditions in the situation of access to financial services in Kenya. Descriptive statistics will mainly be used in this study to describe information or the data collected through the use of numbers. (Blaikie, 2000) argues that the characteristics of groups of numbers representing information or data are called descriptive statistics. The cross sectional descriptive design method that will be used in this study therefore will match the purpose of the study based on the above description of a descriptive research method. The intention of the study will be to determine the level of awareness of microfinance services and the impacts of microfinance services to residents of Nairobi County. The aim is to come up with findings that may be used to make By Fred M’mbololo Page 17
  • assertions on the awareness and impacts of microfinance in Kenya. Using descriptive research design therefore will be to ensure an in depth description of the state of affairs in the study. 4.2 Population and Sampling Design Population (Dornyei, 2007) defines ‘population as those units for which the findings of the survey are meant’. Data on impact and awareness of microfinance will be collected from respondents which shall include but not limited to Nairobi County residents. 4.3Sampling Design Sampling Frame A sampling frame is a list that constitutes the population. The basic idea of sampling is that the unit selected represents the population. This means that selecting some of the element in the population, one can draw conclusions about the entire population. (Cooper and Schindler, 2006) suggest that ‘the sample frame is a representation of the element of target population that consist a list of all elements of that population’. In this study the sample frame shall consist of Nairobi County residents. Sampling Techniques Sampling means selecting a group that represents the entire population. Sampling is considered because it reduces cost and resources that would have been used in studying the entire population. It makes a study more manageable in terms of resources and ensures that the objective of the study is covered as well. By Fred M’mbololo Page 18
  • This study will use the simple random sampling techniques in selecting the sample of respondents who took part in the study. Respondents will then be selected randomly from each stratum. The strata were frontier, emerging and developed banks in Kenya. By Fred M’mbololo Page 19
  • 5. Timescale of Activities Calendar Week st 1 week of October , 2013 nd 2 week of October, 2013 rd 3 week of October, 2013 th 4 week of October, 2013 st 1 week of November, 2013 nd 2 week of November, 2013 rd 3 week of November, 2013 th 4 week of November, 2013 st 1 week of December, 2013 nd 2 week of December, 2013 rd 3 week of December, 2013 Activities Design a chapter structure for the research project including a table of contents, a draft of the abstract, keywords, preface, and Introduction of the study Review the Introduction, design questionnaire and plan how to carry out sampling on certain institutions. Strategize on how to fill in the gaps in the Literature review by gathering more literature on microfinances. Submit my proposal to the supervisor for review Incorporate the feedback received and Send out the questionnaire and follow up for answers and tabulate the results Carry out personal interviews, analyze the results of the questionnaire and interviews Perform analysis on secondary and primary data already gathered. Write up a draft of the dissertation excluding the conclusion chapter. Begin drafting out the conclusions of the findings Complete the final version of the main chapters excluding conclusions. Start writing up the entire dissertation including the conclusion chapter. Review the entire dissertation and suggest recommendations from the study and suggest areas which need further research. th Include the Bibliography and ensure that Harvard Referencing system is used. Check for grammar, spelling and syntax. st Compile the entire dissertation report, allowing for any lapses in the schedule of activities and submit it for marking. 4 week of December, 2013 1 week of January, 2014 and beyond By Fred M’mbololo Page 20
  • 6. Resources I will need to get references from secondary data particularly from journals and textbooks (accounting models and concepts), papers from meetings, as for primary data I will get these from the businesses, internet and the tax offices. I will need time and some money to do the fieldwork for the purpose of gathering the relevant data through cross-sectional descriptive research design and sampling. A list of resources to be used as per the 7 -References shown below; By Fred M’mbololo Page 21
  • 7. References Books 1. Berenbach, Shari, and Guzman D. (1994). The Solidarity Group Experience Worldwide in The New World of Microenterprise Finance, edited by M. Otero and E. Rhyne. Kumarian Press, West Hartford CT: 119-139 2. Berenbach, et al, (1994). The Solidarity Group Experience Worldwide in The New World of Microenterprise Finance, edited by M. Otero and E. Rhyne. Kumarian Press, West Hartford CT: 119-139 3. Blaikie, N. W. H. (2000). Designing social research: the logic of anticipation. Cambridge 4. Creswell, J. W. (2003). Research design: A qualitative, quantitative, and mixed method approaches (2nd Ed.). Thousand Oaks, Calif.: Sage Publications. 5. Creswell, J. W. (2005). Educational research: Planning, conducting, and evaluating quantitative and qualitative research (2nd Ed.). Upper Saddle River, NJ: Pearson. 6. Dornyei, Z. (2007). Research methods in applied linguistics. New York: Oxford University Press 7. Khan, B.H. (2005). Managing e-learning: Design, delivery, implementation and evaluation. Hershey, PA: Idea Group Publishing 8. Ledgerwood, J. (1999), Microfinance handbook: An institutional and financial perspective, the World Bank publications, USA By Fred M’mbololo Page 22
  • 9. .Lokesh K (1984). Methodology of educational research. New Delhi. Vikas Publishing Pvt Ltd 10. Okio credit (2005) Noncredit financial services and Micro credit in Nigeria, a textbook, 2nd edition, pages 131-142, Bolubestway Press limited, Nigeria 11. .Otero, M., (1999). The New World of Micro Enterprise Finance, Kumarion Press, W. Hartford, CT 12. Schreiner, M.; and Colombet H. (2001) Microfinance, Regulation, and Uncollateralized Loans to Small Producers in Argentina, pp. 137–152 in Douglas R. Snow, Terry Buss, and Gary Woller (eds) Microcredit and Development Policy, Nova Science Publishers: Huntington, NY, ISBN 1– 59033–001–3. Thesis 1. Betty K (2006). Rural Financial Services in Kenya What is working and Why? Inaugural dissertation, Egerton University. 2. Joy M. The impact of microfinance on rural poor households’ income and vulnerability to poverty: case study of Makueni District, Kenya. PhD Thesis, University of Nairobi. Kenya. Published 3. Khan, F. (2005). Microfinance and Development, Master’s Thesis, Umeå School of Business and Economics (USBE), Sweden. 4. Mjomba E (2011) Micro-finance and financial empowerment of women in Kenya. PhD Thesis, University of Nairobi. Unpublished. By Fred M’mbololo Page 23
  • Journals 1. Schreiner M. (2010). Seven Extremely Simple Poverty Scorecards, Enterprise Development and Microfinance, Vol. 21, No. 2, pp. 118–136. 2. Sinha H. (1998) Microcredit: impact, targeting and sustainability. IDS Bulletin, volume 29, issue n°4. Papers 1. CGAP (2004). Scaling up poverty reduction: Case study for Microfinance. Washington, D.C. World Bank Financial Sector Network. 2. Graheem Bank (2000). Annual report on of the Grameen Bank, Bangladesh, Dhaka. 3. Kodhek, G.A. (2003). Feast and Famine: Financial Services for Rural Kenya, Working Paper, Tegemeo Institute of Agricultural Policy and Development. 4. Onumah G.E. (2002).Improving access to rural finance though regulated warehouse receipts systems in Africa. A case study paper presented at an international conference on best practice”. Malden, MA. Polity Press. Blackwell 5. Schreiner, M. (2003) The Performance of Subsidized Microfinance Organizations— BancoSol of Bolivia and the Grameen Bank of Bangladesh, Lewiston, NY: Edwin Mellen Press, ISBN 0–7734–6730–0 By Fred M’mbololo Page 24
  • Online sources 1. Brennan, D. (2008). One mission, myriad benefits from microfinance institutions. Microfinance Reviews. Available at: http://nuwireinvestor.com /articles/ microfinance-institution-reviews-51486aspx. (Accessed on 03/08/2013). 2. Coetzee, G., Kamau K., and Andrew, N. (2003). Taking Banking Services to the People: Equity’s Mobile Banking Unit. Nairobi, Kenya: MicroSave. www.seepnetwork.org/files/2084_Equity_Mobile_Banking_Unit_Coetzee_et_al.1. doc 3. United Nations. (2005). Building inclusive financial sectors to achieve the millennium development goals. Available at: www.internationalyearofmicrocredit2005.com . (Accessed on 03/08/2013). By Fred M’mbololo Page 25
  • APPENDIX: QUESTIONNAIRE General Questions 1. What is your gender? a) Male [ ] b) Female [ ] 2. a) b) c) d) Your age is between 18-35 [ ] 36-45 [ ] 46-60 [ ] Above 60 [ ] 3. a) b) c) d) e) Where do you work? Employment [ ] Farming [ ] Trading [ ] Artisan works [ ] Others (Please specify)……………………….. 4. Have you ever applied for a loan (“borrowed capital”) to finance your business? a) Yes [ ] b) No [ ] If yes where? a) Microfinance institution [ ] b) Bank [ ] c) others (specify)…………………………. Level of awareness of microfinance 5. What is the name of your microfinance institution? By Fred M’mbololo Page 26
  • 6. Do you obtain financial services from any other microfinance institution? a) Yes [ ] b) No [ ] 7. a) b) c) d) e) Overall satisfaction with service provided by your microfinance institution? Very dissatisfied [ ] Dissatisfied [ ] Neutral [ ] Satisfied [ ] Very satisfied [ ] 8. a) b) c) d) e) Observed service improvement in your microfinance institution in past 5 months? Much better [ ] Slightly better [ ] Almost same [ ] Slightly worse [ ] Much worse [ ] Level of development of microfinance institutions 9. In your last visit to your microfinance, how do you agree with the following? where (5-Strongly agree, 4-Agree, 3-Neutral, 2-Disagree and 1-Strngly disagree) 1 2 3 4 5 a) I was served on a first come basis b) The service providers displayed name tags c) I was addressed by my name d) The service provider made eye contact e) I was greeted by the provider f) The service provider smiled at me g) I am very satisfied with counter satisfaction By Fred M’mbololo Page 27
  • Impacts of microfinance 10. If you have ever applied for a loan for your business from microfinance, please rate the following statements. (5-Strongly agree, 4-Agree, 3-Neutral, 2-Disagree and 1-Strngly disagree) 1 2 3 4 5 a) It was easy to be given a loan b) The criteria used by MFI in offering loans is fair c) The criteria used by MFI is easy to be met d) I would conclude that MFI has helped me in developing my business e) I would like to obtain another loan if need be from MFI f) Am happy with loan repayment conditions given g) Interest rate offered was fair 11. How do you agree with the following statements about your microfinance? (5-Strongly agree, 4Agree, 3-Neutral, 2-Disagree and 1-Strngly disagree) 1 2 3 4 5 a) Before any loan is given this organization conducts analysis of the viability of the business b) Business analysis done for customers is informed by organization objectives c) Trainings are provided to customers geared towards increasing their knowledge on available products and services d) The organization has a structured way of evaluating training. e) Customers do value training they receive in this organization f) Training done to this organization is geared towards meeting customer needs g) After training, the organization is geared towards meeting cutomer needs h) Within the organization there is an enabling environment for transfer of training to thrive i) There is reliable or efficient service at the counter (dependable for solutions) j) Friendliness of the counter staff (approachable for solutions) k) Politeness of the counter staff e) Reasonable total time taken to complete a transaction f) Staff knowledge of products and services Strategies employed by the microfinance institutions By Fred M’mbololo Page 28
  • 12. How important are the following statements in relation to MFI? (5-Most important, 4-Important, 3Neutral, 2-Not important and 1-Not important at all) 1 2 3 4 5 a) Being greeted by friendly and courteous staff b) Receiving quick and efficient counter service c) Having a clean and tidy environment d) Having staff available to answer questions e) Having information on products and services available f) Privacy for discussing private matters g) Efficient telephone services h) Ability of branch to solve errors and complaints i) Staff addressing you by name j) Publication of service charges By Fred M’mbololo Page 29