An Exploration of the role of microfinancing in improving the Socio-Economic status of households: a case of Chitungwiza, Zimbabwe
- Author
- Mutangabende, Takudzwa
- Title
- An Exploration of the role of microfinancing in improving the Socio-Economic status of households: a case of Chitungwiza, Zimbabwe
- Abstract
- The study was mainly aimed at exploring the role of microfinance in improving socio-economic status of households in Chitungwiza. To achieve this, a comparison of socio-economic status of households before and after they accessed and utilized funds from microfinance institutions was conducted in order to investigate the effectiveness of microfinancing in elevating the socio-economic status of households. A mixed-method approach was employed in this research. The study applied simple and purposive sampling in selecting the respondents. To gather data for the study, 100 questionnaires were randomly distributed to the clients of microfinance institutions. To further supplement the primary data collected through questionnaires, interviews were also conducted with seven loan officers. A sample of 107 (100 beneficiaries of MFIs and 7 key informants) was used. This study utilized a blend of secondary and primary data collection methods. The findings of the study show that microfinancing has significant role in improving socio-economic status of households by improving household income levels, assets accumulation, enhanced food security and improved children’s welfare. Despite the improvements of socio-economic status of households in the area under study, they have been met with some challenges like high interest rates, short repayment period, too much deductions, few MFIs in the areas and difficulty of fulling repayment schedule and low profit. Therefore, the study recommended that microfinance institutions should lower their interest rates, increase grace period, more sensation and government intervention to regulate interest rates and implement measures that safeguard borrowers.
- Date
- June 2024
- Publisher
- BUSE
- Keywords
- Microfinance,
- Socio-economic status,
- Supervisor
- Dr. T. Mnyangadze,
- Item sets
- Department of Geosciences
- Media
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MUTANGABENDE_T.pdf