Contribution of Village Saving and Loan Association (VSLA) to Household Welfare Improvement in Bala Sub-County, Kole District, Uganda
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Date
2021
Authors
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Publisher
Lira University
Abstract
The study was conducted to examine the effect of VSLA loan activities on poverty reduction in
Bala Sub-County. Specifically, the study examined the effect of lending modality on the household
welfare improvement in Bala Sub-County, assessed the effect of financial literacy on the
household improvement in Bala Sub-County and assessed the effect of small business financing
on the household welfare improvement in Bala Sub-County.
The study employed cross sectional design and the approaches used were both quantitative and
qualitative; the sample size of the study population was 110 respondents comprising of members
of VSLA in Bala Sub-County, the District Commercial Officer and Community Development
Officer. From the target population of 110, a sample size of 86 respondents was determined using
Krejcie and Morgan. Simple random sampling and purposive sampling techniques were applied to
sample the respondents. Questionnaires were used to collect quantitative primary data while
interview guide and Focus Group Discussion was employed to collect qualitative data. Data
analysis was done using the help of the SPSS version 23. Correlation coefficient was used to test
the strength and the direction of the relationship between the variables.
The findings of the study revealed that household welfare was positively and significantly
correlated with lending modality, financial literacy and small business financing. Finally, the
results of the regression revealed that VSLA lending modality, financial literacy and small
business financing all had a positive significant effect on the level of household welfare hence
poverty reduction among members of VSLA in Bala Sub-County.
Based on the findings, the study concluded that all the credit activities of the VSLA that were
studied by the researcher affect the level of household welfare among the members of the VSLA
in Bala Sub-County.
The study therefore recommended that government should support the VSLA activities as it is
playing a big role in reducing the level of poverty among the poor people at the grassroot level
who can not access credit facilities from the formal financial institutions in Uganda.
Description
Keywords
Contribution, Village Saving and Loan Association, Household Welfare Improvement
Citation
Ocen, T., and Akello, J.A. (2021). Contribution of Village Saving and Loan Association (VSLA) to Household Welfare Improvement in Bala Sub-County, Kole District, Uganda