The Transformative Power of Financial Services on Economic Growth among Households in Mbarara Municipality

Abstract

Purpose: To establish the relationship between status of available financial services and economic growth of households in Mbarara municipality in Uganda. Methodology: The study adopted cross sectional research design. Out of the 16,861 household of in Mbarara municipality, 100 households were selected using Yaro Yamane’s Statistical formula which gives a better representative sample size out of a big population size as compared to other methods (Yamane, 1969). A Standard linear regression analysis was carried out. Findings: The study findings revealed that there is a substantial positive relationship between status of financial services available and level of economic growth of households in Mbarara Municipality with 41.4% of high level the economic growth of people Mbarara Municipality is because of the good status of financial services available. Other factors such as inflation and government policy accounted for 58.6% of the level of Economic growth of people Mbarara Municipality in Uganda Recommendations: The study also recommends that the government and other stake holders such as Mbarara municipal council and other non-governmental organizations should increase on the status of financial services available buy increasing accessibility, quality and usage since they account for 41.4% of the level the economic growth of people Mbarara Municipality Strategies to control other factors like inflation and political instability such as encouraging industrialization and exports should be put in place so since they account for 58.6% of the level of Economic growth of people Mbarara Municipality