The Interest Rate and Performance of Business Enterprises in Ntungamo District: A Case Study of Ruhama Development SACCO in Ntugamo Municipality Ntungamo District.
The study assessed interest rates and performance of business enterprises in Ntungamo District a case study of Ruhaama Development SACCO. The objectives of the study were to find out the role of interest rates on the performance of SACCOs, to examine the challenges affecting the performance of SACCOs, and to suggest strategies to improve the performance of SACCOs. A cross-sectional research design was used and a sample size of 40 respondents was used for the study. Data was analyzed using a Microsoft excel computer program to present information in tables. The study results on the role of interest rates on performance of Micro Finance Institutions, the highest number of respondents mentioned that interest on savings motivates clients to save which enables the SACCO to have ready cash for clients to borrow leading to performance, the lowest number of respondents stated that interest rates on loans motivates clients to pay in time which leads to SACCO's performance, the study findings on the challenges affecting the performance of SACCOs where the highest number of the respondents mentioned that SACCO's face the challenge of competition from other financial institutions while the least number of the respondents mentioned un qualified employees of the SACCO affects its performance and the study results on the strategies to improve on the performance of SACCOs the highest number of respondents mentioned that SACCOs should minimize operation costs which is consistent with the microfinance best practices and the lowest number of respondents stated improvement of the specific infrastructure related to the daily operation of MFls like computer cables. The study recommended that Ruhaama Development SACCO should employ skilled employees to reduce the operating cost of the institution and the government should also take concern on repairing and constructing roads in the area to ease transportation of agricultural products which is the most source of income to increase the saving capacity of the people.
Interest Rate, Performance, Business Enterprises, Ntungamo District, Ruhama Development SACCO, Ntugamo Municipality
Tugume, Harry (2022). The Interest Rate and Performance of Business Enterprises in Ntungamo District: A Case Study of Ruhama Development SACCO in Ntugamo Municipality Ntungamo District. Kabale: Kabale University.