Studies have shown that the negative effects of credit market inefficiencies are most felt by smaller firms. Therefore, in countries such as Uganda, where micro enterprises are at the bottom of the economic pyramid, moral hazard and adverse selection severely affect their ability to access formal credit hence limiting their growth potential. Microfinance has been heralded for its use of innovative lending methods to improve access to credit. The last decade has witnessed an unprecedented increase in the outreach of micro lending institutions and the development of financial products suited to the needs of the economically active poor, who often, are unable to obtain credit from mainstream financial institutions. This book analyzes the law and economics theories on access to credit and enterprise finance and based on case studies in Uganda, presents empirical findings of the promise and limits of contractual innovations in micro credit.
Dr Winifred Tarinyeba-Kiryabwire is a lecturer and acting Head of Department Public and Comparative Law at the Faculty of Law Makerere University where she teaches the Law of Business Associations, Corporate Governance and Corporate Finance Law. She holds a Doctor of Science of Law degree (JSD, 09) and Master of Science of Law degree (JSM, O6) from Stanford University, USA as well as a Master of Laws degree (LL.M, 01) from Cambridge University, UK; a Postgraduate diploma in Legal Practice (PGDLP, 00) from the Law Development Center; a Bachelor of Laws degree (LL.B, 99) from Makerere University. She is a Commonwealth and Fulbright Scholar and has received several fellowships including the Robert S. McNamara Fellowship of the World Bank, Fellow of the Stanford Program in International Legal Studies and the Cambridge Commonwealth Society Fellowship.