Credit financing and performance of micro-enterprises in Mpigi District Uganda
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Date
2017-10
Authors
Journal Title
Journal ISSN
Volume Title
Publisher
Kampala International University, College of Economics and Management
Abstract
The study sought to establish the relationship between credit financing and
performance of micro-enterprises in Mpigi district, Uganda. The study was guided by
three specific objectives. that included i) determining the extent of credit financing: ii)
level of performance of small and medium enterprises; iii) the relationship between
credit financing and performance of micro-enterprises in Mpigi district. This research
employed descriptive correlational design to describe the relationship between credit
financing and performance of micro-enterprises in Mpigi district. Uganda. The findings
revealed the following; majority of respondents in this sample ranged between 18-30
years and these were male (59.6%), 31.6% were Bachelor's degree holders and had
spent 3-5 years in small and medium enterprises. Data analysis using means connoted
that extent of credit financing was found to be satisfactory. the level of performance of
small and medium enterprises was found to be high and this was indicated by the
overall mean (mean=2. 78). The extent of credit financing and performance of small and
medium enterprises are positive and significantly correlated. The researcher concluded
that: concluding that micro-financial institutions (MF[) have provided financial services
to small and medium sized enterprises. which are continuously ignored by the formal
banking sector. the employees of these small and medium enterprises receive their
salaries on time. and ""od and better credit financing increases the level of performance
of micro-enterprises i11 iVipigi district. Uganda. and unsatisfying credit financing
reduces it. and among all the aspects of credit financing. interest rate accounted for the
biggest inlluence on performance of micro-enterprises in Mpigi district. uganda
(0=0.568. Sig=O.OOO). The researcher recommended that: Microlinance institutions
should always provide loans to small and medium businesses without collaterals.
should make sure that the small and medium business owners are comfortable with the
period in which should have to repay the loan, should make sure that the type of loans
they get have loan installments which are manageable within the repayment period.
should make sure that the type of loans they get have interest rates which do not
threaten the growth of their businesses, and lastly should'nt miss the loan repayment
elate in order to avoid additional charges
Description
A Dissertation Submitted to College of Economics and Management in partial fulfilment of requirement for the A ward of Bachelor's Degree in Business Administration of Kampala International University
Keywords
Credit financing, Perfomance, Mpigi District