DID recently conducted a study of 1,961 small business owners to measure the impact of the Entrepreneur Financial Centre (EFC) in Uganda. The findings reveal that providing financing to EFC clients helps them improve their situation and get ahead in their industry.
Compared to other entrepreneurs, EFC clients:
- Hold a higher number of financial products (fun fact: female EFC clients open more savings accounts)
- Are better at maintaining business standards and bookkeeping (particularly women)
- Post higher monthly sales and profits, have more employees and higher payroll (fun fact: business growth began after clients received a loan from the EFC, helping to move more of them into the missing middle)
- Perform better and have higher income, leading them to spend more on food, services, child education and, most importantly, healthcare
Compared to other financial institutions, the EFC:
- Performs better
- Has higher loan approval rates
- Grants higher loans for longer terms
- Has shorter wait times
EFC Uganda has been in operation since January 2012 and has a loan portfolio valued at CAN $4.1 million. The portfolio includes loans to 5,042 entrepreneurs, 35% of whom are women. The EFC has seven branches and business service centres employing a total of 111 people.