Proposal 4

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1.5 Research questions
The study will seek to answer the following questionsI.
 
What is the level of spread and performance of micro finance institutions in MakindyeTown in Kampala?
II.
 
What is the level of growth of small scale enterprises in Makindye Town in Kampala?III.
 
What is the impact of microfinance institutions towards the growth of smallenterprises in Makindye
Town in Kampala?
1.6 Scope of the study1.6.1Geographical Scope
The proposed study area is Makindye Town in Kampala. The area is located in outside partsok Kampala
town with high population and easy accessibility with a lot of small scaleenterprises and microfinance.
1.6.2 Content Scope
The proposed study content is basically involved with finding out the roles of microfinanceinstitutions
towards the growth and development of small enterprises, the study will focus onfinding out the number
of micro finance institutions their performance correlated with thelevel of growth of small enterprises in
the selected area.
1.6.3Time Scope
The proposed study will be conducted with a period of five months (5) to effectively gatherthe
information that effectively meets the study objectives. The stud shall base on the datafrom 2005 to date
as the most relevant data for better analysis and comparison purposes.
1.7 Significance of the Study
With the study on small scale development through use of microfinance institutions, theresearcher hopes
that the study will form a basic material to the following beneficiaries:The information will be useful for
planners and decision makers in different institutionsdealing with microfinance program .The findings
and recommendations will also be useful to

 
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Small enterprise growth

Expansion of operations

Increased productivity

Increased profits

Increased decision makingefficiency
Intervening factors

Economic factors

Government intervention

taxationsmall scale enterprise managers in determining the usefulness of microfinance
towardsdevelopment and growth of their enterprises.The
 
academicians will also use the findings of this study to embark on a related study. Inother terms, the study
findings in this research will act as reference for other futureresearchersThe researcher will also acquire
necessary skills of data collection, interpretation, analysisand discussion and this will help him in carrying
out similar research in future and to enablehim getting the award of other degrees related to accounting
and finance.
1.8 Conceptual frame workFigure 1:
Conceptual FrameworkIndependent Variable Dependent VariableMicrofinance institutions

 
Loans provision

 
Interest rates

 
Advisory services

 
TrainingThe above conceptual frame work describes the relationship between the independentvariable
and the dependent variable. The frame work further presents the intervening factorsthat can also impact or
determine the dependent variable.

 
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The performance of microfinance institutions is the independent variable and this involvesfactors such as
provision of loans, the interests rates, advisory services and training to peopleto enable to effectively use
these funds. The services provided by the microfinanceinstitutions determine the growth and development
of small enterprises. This therefore meansthat the growth of the small enterprises depend on the services
delivered by microfinanceinstitutions and the growth is expressed in terms of size of the enterprise, level
of profits,efficiency and increase in the level of productivity.According to the frame work, the small
enterprise is not only impacted on by the services ofmicrofinance institution but also impacted on by
other factors such as the government factorslike taxation and economic factors which are essential
determinants of the success ofactivities.

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