Effect of financial interest rates on small scale enterprises. a case study of Owino market in kisenyi flour millers in kampala city

Abstract

My Study was based on financial institutions with reference to lending rates. The scope was mainly on small scale enterprises and the impact felt due to these rates. The method applied was both quantitative and qualitative in Owino Market and Kisenyi Flour Millers. The research was able to establish causes that lead to poor performance as high bank rates and lack of awareness of the Banking sector and its operations. It is therefore, recommended that banks harmonize their bank rates to attract high investment and conduct awareness seminars to build a strong foundation for small investments. In conclusion both banks and small scale investors are working at lower capacity than projected because of low borrowings and also small investments are suffering from liquidity problems because of the hardships in obtaining credit.