Abstract:
The main purpose of this study was to assess the the contribution of microfinance institutions to the welfare of their customers. From the general objective, the following specific objectives were formulated: to analyze the contribution of services provided by GOSHEN microfinance to the welfare of its customers and assess challenges GOSHEN microfinance faces while trying to contribute to the welfare of its customers. To achieve those objectives, the data was collected from a sample of 99selected respondents in customers of Goshen microfinance headquarter and credit officers. The techniques used in data collection include documentation, questionnaire, and observation. And on the other side analytical, Synthetic, statistical and comparative methods were used in this study in data analysis.
The findings shows that services provided by Goshen microfinance contribute a lot to the welfare of its members since 60% of the total respondents strongly agreed that Goshen microfinance institutions give its clients loans to enhance their welfare. It is also observed that 80% strongly agreed that microfinance under study provide advisory services to its clients to ensure that the financed projects are leaning well. Regarding to the change in customers‟ welfare as results of services provided by Goshen Microfinance results demonstrate that 76.77% indicated that it was very difficult to pay the school fees before joining microfinance under study However the big number of respondents represented by 95.96% of the total respondents indicated that after joining this microfinance it is easy to pay the school fess. Regarding to the challenges GOSHEN microfinance faces while trying to contribute to the welfare of its customers, researchers realized that the majority of interviewed staffs with 60% mentioned that lack of enough skills and ability in business management is a very big challenge that Goshen microfinance faces while trying to promote welfare of its clients. Also 80% of interviewed staffs strongly agreed that unfaithfulness of some clients is barriers to Goshen‟s task of promoting welfare of its clients. As a conclusion therefore, Goshen Microfinance institution contribute a lot to the welfare of its customers. Therefore, it is from that researchers recommend Goshen to organize rigorous training on business management to its clients to ensure that they will be able to operate financed business and payback the granted loans.
