Rural women are the backbone of household economies, yet they face significant barriers in accessing capital and growing sustainable businesses. Despite owning nearly 40% of all businesses, Ugandan women receive only 9% of commercial loans, highlighting a substantial gender gap in financial access. The gap is even wider for rural women.
One of the three key areas of focus is our deep commitment to uplifting rural women out of extreme poverty through economic empowerment. In December 2024, we launched a microloan initiative designed not only to provide small amounts of capital to rural women entrepreneurs but also to equip them with essential business skills to succeed in running small businesses.
Following monthly support and supervision visits to the first five beneficiaries of our pilot initiative, we would like to share updates on the initiative. We are excited because the impact of this effort is becoming beautifully clear!
Microloans help to close the gap in financial inclusion and lift local women out of poverty.
Enhanced Personal and Business Budgeting
During our visits, we met rural women who had taken the microloans and put their training into practice. From budgeting and record keeping to customer service and pricing strategies, they are now managing their businesses with a newfound sense of confidence and purpose. One of the most significant improvements has been in budgeting and cash flow management.
For example, Josephine, a retail shop owner, shared how she now budgets before making any purchases. This simple but powerful habit has helped her gain control over her finances, allowing her to plan her spending and saving with more clarity and discipline.
Similarly, Margaret, who operates a milling machine business, has taken a strategic approach to managing her income. Instead of using all her business proceeds to meet daily household needs, she started a second business to support her family, ensuring that her milling operations can continue to grow without financial strain.
Another example is Kevina, another inspiring entrepreneur, who echoed these changes. She emphasized how budgeting has helped her find a better balance between what she spends and what she saves.
Improved Cash Flow Management skills
Our monitoring team noted a significant improvement in record keeping. The rural women are now tracking their profits, losses, stock levels, and weekly sales with greater precision. These records are enabling them to make informed decisions about their businesses, identify what’s working, and plan for the future with better insights.
This clarity has transformed the way they think about and manage their enterprises.
Customer service is key to thriving small businesses
Customer service has also seen a meaningful upgrade. Many of the women now pay close attention to product quality, regularly inspecting their goods and organizing their shops more strategically. Josephine and Kevina have arranged their stores into zones, placing high-demand items where customers can easily find them. They’ve also embraced creative marketing techniques—Josephine, for example, uses eye-catching window displays and offers discounts to customers who refer others to her shop. These efforts have not only attracted new buyers but also built customer loyalty.
In the poultry sector, Eva stands out. She’s gone to great lengths to improve her chicken farming business, from enhancing her birds’ diet to maintaining a clean and safe environment. She vaccinates regularly and keeps the shelter well-sanitized to prevent diseases. Yet, she still faces tough challenges. Many of her chicks die at a young age, affecting her profits and business goals. Worse still, wild cats have become a serious threat to her flock. Determined not to give up, Eva has taken matters into her own hands—she sealed every hole in her chicken house, leaving just one small, secure entrance to protect her birds from predators.
Another issue echoed by several women, especially those in retail, is the instability of market prices. Fluctuating prices make it difficult to set consistent selling rates, sometimes leading to unexpected losses. Still, many are learning to adapt by closely watching market trends and adjusting their pricing strategies accordingly.
Women are raising improved chicken breeds as a business to support themselves financially.
Despite these challenges, the determination and growth we witnessed during our visits were deeply encouraging. The women are not only sustaining their businesses—they’re also transforming their lives and communities. As SHCAN, we see this as a powerful validation of what small, targeted support can achieve.
The transformation of these rural women is proof that small loans, combined with training and support, can spark big change.
Looking ahead, we plan to strengthen our microloan program by introducing more flexible repayment options and exploring digital solutions for loan application and tracking. Most importantly, we aim to expand this initiative to reach more women across other villages, helping them unlock their potential and build more sustainable livelihoods.
This project is more than just a financial intervention. It’s a story of resilience, of learning, and of bold rural women who are rewriting their futures—one decision, one business, and one loan at a time.
Help us uplift more rural women through microloans and business training.
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