MICRO, SMALL AND MEDIUM ENTERPRISES (MSMEs)
With the relatively low levels of formal employment in developing economies, including Uganda, Micro, Small, and Medium Enterprises (MSMEs) are a critical pathway for livelihoods and improved wellbeing.
These businesses struggle to access formal credit for productive investments due to the the lack of collateral and gaps in record keeping/ profiling.
On the supply side, financial service providers find the cost of providing credit to them too high relative to their average loan amounts, and experience difficulties in effectively assessing the risk for this segment.
According to the 2015 Small Business Survey of Uganda, while MSMEs actively use savings and mobile money services, their uptake of loans remains relatively low despite a notable appetite for credit, and their engagement with commercial banks is skewed towards larger industries such as construction.
Through interventions tailored to fit specific MSME segments, FSD Uganda works with partners to improve access to relevant financial products and services for increased productivity, reduced risk and better outcomes.
Loan Application by Business Size
*2015 Small Business Survey of Uganda
