Browsing by Author "Bongomin, George Okello Candiya"

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    Does financial experience of women owners of micro businesses promote microfinance lending and their continued existence in rural Uganda?
    (Emerald, 2025-03-03) Bongomin, George Okello Candiya; Semukono, Frederick; Lubega, Joseph Baleke Yiga; Yourougou, Pierre
    Purpose Financial experience is very important in today’s dynamic world of constant globalization with the upsurge in sophisticated financial products entering the financial markets, especially in developing countries. This is because it helps the illiterate unbanked poor women owners of micro businesses to make wise financial judgments and options guided by psychology and cognition. This paper aims to ascertain how financial experience can promote microfinance lending and the continued existence of women micro businesses in rural Uganda through an intervening role. Design/methodology/approach The paper employs a structural equation model through SmartPLS software to ascertain how financial experience can promote microfinance lending and the continued existence of women micro businesses in rural Uganda through an intervening role. Findings The empirical findings from this study indicated that financial experience, as a significant and positive mediator, improves microfinance lending and the continued existence of women micro businesses in rural Uganda. Research limitations/implications Owing to the geographical ambit of the current study and sample source from only one developing country, future studies may collect data from other regions of the world for comparative analysis to give more insights on the role of financial experience in rural financial markets. Practical implications The government of Uganda should promote financial literacy to enhance the financial experience of women owners of micro businesses to help them make better financial judgements in the rural financial markets. This may increase microfinance lending and the continued existence of vibrant women micro businesses in rural areas. As a result, this could lead to the creation of more jobs for the ever-growing younger population in Uganda. Originality/value This study is motivated by the lack of understanding and experience about key financial concepts among more than 3.5 billion adults, mostly women. It applies the Experiential Learning Theory grounded in psychology and cognition to show how the financial experience of women who run micro businesses derived from repeated retrieval of knowledge and reflection, can help them to make sound financial judgments to become financially included by rural-based microfinance institutions. Learning-by-doing allows women owners of micro businesses to repetitively take prudent saving, borrowing and investment selections that help them to generate income to meet timely loan repayment to access more microcredit for the continued existence. This is inadequate in the current theory of microfinance lending in rural financial markets.
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    Social capital: mediator of financial literacy and financial inclusion in rural Uganda
    (Review of International Business and Strategy, 2016) Bongomin, George Okello Candiya; Ntayi, Joseph Mpeera; Munene, John C.; Nabeta, Isaac Nkote
    The purpose of this paper is to examine the mediating role of social capital in financial literacy and financial inclusion relationship in rural Uganda. The major aim is to establish the role of social capital in the relationship between financial literacy and financial inclusion.The paper adopts and uses MedGraph programme (Excel version 3.0), Sobel and Kenny and Baron tests to test the mediation effect of social capital in the relationship between financial literacy and financial inclusion.The results reveals that social capital is a significant mediator in the relationship between financial literacy and financial inclusion of rural poor in Uganda. Financial literacy did not have a direct effect on financial inclusion, but through full mediation of social capital. Existence of social capital into the relationship boosts the relationship between financial literacy and financial inclusion by 61.6 per cent among rural poor households in Uganda. Thus, the finding suggests that with the absence of social capital, financial literacy may fail to enhance the level of financial inclusion among rural poor households in Uganda.arch approach using a questionnaire. However, future research through interview may be of importance. Besides, for the purpose of triangulation, a study involving financial institutions’ staff may be viable. Moreover this study was limited by the fact that it was cross-sectional. Furthermore, a longitudinal study may be useful in future to investigate the mediating impact of social capital spanning over a long period of time.Managers, policymakers and financial inclusion practitioners should advocate and embark on building social capital among rural communities, so as to improve on the level of financialinclusion.While a large body of research has been carried out on financial literacy, this paper is the first to test the mediating role of social capital in the relationship between financial literacy and financial inclusion, especially in rural Uganda. This study generates evidence and contributes to the powerful influence of social capital in enhancing the level of financial inclusion based on financial literacy.
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    Toward increasing financial inclusion and sustainability of indigenous microenterprises in Africa in the presence of financial literacy
    (Emerald, 2025-05-06) Bongomin, George Okello Candiya; Chrysostome, Elie; Nkongolo-Bakenda, Jean Marie; Yourougou, Pierre
    Purpose The main objective of this paper is to explore the link between financial inclusion and the sustainability of indigenous micro, small and medium-sized enterprises (MSMEs) in Africa in the presence of financial literacy. Design/methodology/approach This study applied a semi-structured questionnaire to gather data to provide an answer to the set main objective. Findings The results reveal a positive link between financial inclusion and the sustainability of indigenous MSMEs in Africa in the presence of financial literacy, grounded in consumer socialization and social learning theories. Research limitations/implications This study collected data at a single time period. Forthcoming studies could benefit from using experimental design to capture changes in the long run. Practical implications This study offers direction for designing financial literacy curricula aimed at addressing the gaps in financial literacy among MSMEs in Africa. Specialized modules can be developed to equip MSME owners with the ability to make better loan choices and investment judgments, ultimately enhancing business sustainability. Originality/value This study applies consumer socialization and social learning theories to explore the link between financial inclusion, financial literacy and the sustainability of indigenous MSMEs in Africa. This is lacking in most past studies and literature.