microfinance institutions and performance of small and medium enterprises in Ncora district: a case study of mukura subcounty:
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Date
2019-08
Authors
Journal Title
Journal ISSN
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Publisher
Kampala International University, College of Economics and Management.
Abstract
The purpose of the study was to determine the effect of micro/lnance institution services on
the perjbrmance of small and medium enterprises and the spec~Jlc objectives of the study
were; to examine effect of microfinance loan services on the performance of small and
medium enterprises in Uganda, to determine the effect of microfinance investment training
services on the performance of SMEs in Mukura sub county and to establish the effect of
microjInance saving services on the performance of SMEs in Mukura Sub county. A cross
section survey design was used and data was collectedfrom 50 respondents. The findings of
the study revealed that loan services enhance the performance of small and medium
enterprises as respondents agreed to most of the statements that were used to measure this
objective except that it was revealed that the interest charged on loans is notfavorable and
also that the collateral security is a problem in obtaining the loan. The findings of the study
also revealed that training services improve the performance of small and medium
enterprises as respondents agreed to all the statements that were used to measure this
objective ofthe study. The findings ofthe study further revealed that saving services improve
the performance ofsmall and medium enterprises in Ngora district as most ofthe respondents
positively answered to the statements that were used to measure this objective. The study
found out that Microfinance institutions charge ledgerfees on the accounts ofthe respondents
and that they earn low interest on their savings. The study recommended tha4 the central
bank should regulate the interest charged by microfinance institutions in order to favor the
borrowers, Low or no collateral security loans should be introduced among the products and
services of microfinance institutions as the study revealed that collateral security is the
biggest hindrance in attaining a loan from MFIs, owners of small and medium enterprises
should endeavor to take part in the trainings offered by microfinance institutions as the
findings ofthe study revealed that trainings greatly enhance business performance ofSMEs,
Microfinance institutions should not charge ledger fees on the accounts of the customers in
order to encourage them to delight in serving services and that MFIs should increase on the
interest earned on the savings ofcustomers in order to boost their moralefor saving.
Description
a research report submitted to the college of economics and management in partial fulfilment of the requirements for the award of a bachelor of business administration of kampala international university.
Keywords
micro finance institutions, performance, medium enterprises