Sacco Services and Growth of Small-Scale Enterprises In Mbarara Town
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Date
2019-10
Authors
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Publisher
Kampala International University, College of Economics and Management.
Abstract
The importance of SACCO to eradication of poverty cannot be overemphasized. SACCO offer financial services to active poor who were traditionally neglected by conventional banks with a view towards lifting them out of poverty. Hence, this study sought to establish the effect that commercial bank services have on the growth of small-scale enterprises in Mbarara- Town. Even is a government policy to ensure that all people have access to financial services but many businesses in Mbarara have continued to suffer from lack of proper skill~ the inability to access credit, hig interest rate on short-term investment loan which have led to a high failure rate of small scale enterprises in Town. The objectives were to establish the effect of seed capital
on the growth of small-scale enterprises, to determine the effect of financial skills training on the growth of small-scale enterprises and to assess the effect of mobilization of savings by SACCO on the growth of small-scale enterprises. The study employed a cross-sectional research design. The data were collected from people operating in small scale enterprises in Mbarara- Town. A sample of 176 respondents were determined from 315 target population. The data was analyzed using simple regression analysis. The study findings were that provision of seed capital affect the growth of small-scale enterprises by 24,6% implying low effect, skills training has a 49.4% effect on the growth of small-scale enterprises and mobilization of savings had 82.1% effect on growth of small scale enterprises. On the first objective the researcher established that seed capital had less effect on the growth of small scale enterprises; meaning that there are other factors that account more for the small-scale enterprises growth, even that the argument that seed capital is not provided to starting small scale enterprises is a proof for not growing well. The effect on the second research objective that established financial skills training on the growth of small-scale enterprises was low though substantive, the researcher concludes that training could be not so adequately advanced to the small-scale enterprises explaining the low growth rate regarding this other factor contribution are considerably low. The third objective established that there was a high significant effect of saving mobilization on growth of small-scale enterprises in Mbarara- Town. The researcher recommended that the status of the business operations need to acquire collateral security before operation in order to attain value for seed capital there is need for more training by SACCO to small scale enterprises and there is need for improving savings through providing attractive interests on savings and other relevant practices.
Description
A Research Report Submitted to The College of Economics and Management in Partial Fulfillment of The Requirements for The Award of Bachelors Degree of Business Administration of Kampala International University
Keywords
Sacco Services, Small-Scale Enterprises