The Role of Start up Capital in Poverty Alleviation. A Case of Buwama Sub-County Mpigi District

Abstract

Abstract The need to discover the impact of the ‘start up capital’ credit scheme  in alleviating poverty among the household of Buwamasub-county laid a foundation for this research. The study tested the hypothesis that accessibility  funds from start up capital scheme improved the welfare of beneficiaries. Primary data was collected from 88 respondents and analysed using an econometrics model. Empirical results of the analysis indicated that, access to funds from the credit scheme, expenditure on health and distance from the household to the nearest market significantly increases the probability of a given household being poorat a level of 1%. Other variables considered were insignificant, but they reduce the probability of a  household being poor. Occupation of the head of the household and the value of physicalassets owned by the household and the education level  of the household head had a negative impact  expected outcome.  The study recommended comprehensive training of the household heads before advancing credit, efforts should be stepped up to increases the level of education, opening more markets and improving infrastructure in terms of roads. It was also recommended to revisit the scheme to ensure amount given to beneficiaries is sufficient   and reduce the interest rate.