Microfinance and SEP

Under the Microfinance and SEP programmes, the Research and Evaluation Unit are conducting a number of research to generate relevant information for the programmes. These include:

Research on dropout:
The project is relevant to Uganda and East Africa at large, where borrower drop out from microfinance programme has been a common theme, costing these programmes. It is therefore very important for Microfinance Institutions to understand borrower drop out practices.

This research initiative mixes qualitative and quantitative methods to explore the trends in borrower dropout from the Microfinance Programme. In particular the research explores the reasons why borrowers drop out of the programme.

Research on group dynamics:
Microfinance groups are critical to achieve organisational sustainability by becoming self managed social platforms, guided by internal rules and regulations that members agree to comply with. Therefore it is vital to understand group dynamics and group discipline for the programme to make adjustments. This research project aims to look at the extent to which group characteristics affect group performance.

The research methodology includes a combination of qualitative and quantitative research methods and explores the situation in 15 branches across 3 districts.

Evaluating the impact of savings promotion initiative:
Based on BRAC’s pilot initiative to facilitate a savings culture and encouraging saving with formal financial institutions among its borrowers, the Research and Evaluation Unit conducted an impact evaluation. This research explores if saving’s promotion at community level influenced any changes in attitudes of poor people towards saving and the factors affecting savings behaviour of the poor.

The research followed a RCT method and consists of 2400 households. The baseline and follow up survey was carried out in 2009 and 2010 respectively.