RELATIONSHIP OF MICRO CREDIT SERVICES ON SOCIO-ECONOMIC DEVELOPMENT OF WOMEN ENTREPRENEURS IN JUBA CITY: A CROSS SECTIONAL STUDY.

Abstract

Background

The study aims to examine the relationship between micro-credit services on the socio-economic development of women entrepreneurs in Juba City.

Methodology

The researcher adopted a correlational research design to establish how each microfinance service relates to the economic development of women entrepreneurs in Juba City. A sample of 152 respondents was selected from a study population of 250 persons. However, the researcher managed to access 135 respondents, giving a response rate of 88%. Respondents were selected using Purposive and simple random sampling techniques. Data was collected by use of self-administered closed-ended questionnaires.

Results

20.74% of the respondents were male and 79.26% were female. Microcredit services had a beta value of 0.722. It can therefore be deduced from the result that at a 100% increase in micro-credit services, the economic development of women entrepreneurs in Juba City is likely to improve by 72.2%.

Conclusion

The researcher sought to establish whether microcredit services have any statistically significant relationship with the socioeconomic development of women entrepreneurs in Juba City. The study findings revealed that microcredit services have a statistically significant positive relationship with the economic development of women entrepreneurs in Juba City. This was based on the Pearson correlation analysis as well as a multiple regression analysis which revealed a statistically significant positive relationship between the two variables (r = 0.722, p < 0.05, n = 135).

Recommendation

The management of microfinance institutions in Juba City ought to offer long repayment periods to borrowers as this is likely to increase the working capital of the small businesses in the study area. Moreover, to enhance the accessibility and reliability of their credit services, microfinance institutions also need to direct more efforts into credit diversification and at the same time adopt a more equitable treatment of all its credit customers.