The role of microfinance services in funding small and medium enterprises in Uganda :

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Kampala International University, College of Economics and Management
The purpose of this study was to establish the role played by Microfinance institutions in funding small and medium enterprises. The objectives of this study were to find out procedures Microfinance institutions use to provide credit services, benefits and challenges faced by small and medium enterprises in accessing loans. The research was descriptive in nature involving quantitative methods which was administered through questionnaires. The total sample comprised of 50 respondents: 10 staffs of Pride Microfinance Limited, Katwe Branch and 40 small businesses in Katwe-Mengo-Kisenyi, Kampala. Simple random sampling was used in the study. According to the research findings Small businesses have got several benefits from banks that have led to their growths. However, majority of small businesses have low turnovers, not organized enough to benefit from government programmes. Nonetheless, there is a strong positive relationship between the contributions of microfinance to the success of small businesses. It was concluded that the contribution of microfinance services affect the ratio of the success of small scale businesses in form of profits earned from the sale of stock hence a consistent restocking of goods, small businesses need financing to restock. It was recommended that more products tailored to the customers’ needs should be set up. From the study, it was realized that the financial sector in Uganda is narrow with only a few standard products which limit the options available to small scale businesses.
A research report submitted to the college of economics and management in partial fulfillment of the requirements for the award of Bachelors Degree in Business Administration at Kampala International University
microfinance services, small and medium enterprises, pride microfinance limited, Katwe branch