ABSTRACT
This chapter examines the innovative financing approaches that some microfinance institutions (MFIs) in Uganda have adopted in order to serve youth through financial and social intermediation. It is based on cases investigated as part of a wider study on the intrapreneurial environment and performance of MFIs, and investigates how the innovations were initiated and which internal environmental factors influenced their success. Youth unemployment is one of the major challenges facing economies in sub-Saharan Africa. In the context, microfinance institutions (MFIs) have emerged as an important innovation in the financial sector, offering financial services to the unbanked and the vulnerable. In an imperfect market, some economic actors may take advantage of others out of self-interest while other economic actors make irrational decisions due to limited information, time, and cognitive ability. Microfinance services were originally offered by nongovernment organisations (NGOs), which focused on extending credit to the poor through microloans for business.
