An analysis of microfinance services and growth of small and medium enterprise in Kampala Town Council
Loading...
Date
2016-11
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 microfinance services and growth of
small and medium enterprises in Kampala, Uganda. The study was guided by three specific
objectives, that included i) establish the microfinance services accessed by the small and
medium enterprises owners in Kampala Uganda; ii) determining the level of growth of small
and medium enterprises in Kampala Town Council and (iii) establishing the relationship
between microfinance services and growth of small and medium enterprise in Kampala
Uganda. This research employed descriptive correlation design to describe the relationship
between microfinance services and growth of small and medium enterprises in Kampala,
Uganda, the study used a total population of 220 and a sample size of I 42 respondents, and
the questionnaire was used as the research instrument. Descriptive statistics used in this study
included frequencies, means and PLCC on co!'J'elation or variables. Data analysis using means
showed that micro finance services was rated satisfactory ( overall mean=2. 90)and growth of
small and medium enterprises in Kampala, Uganda was found to be satisfactory (mean=2.88).
Microfinance services and growth of small and medium enterprise are positive and
significantly correlated. The researcher concluded that concluding that the microfinance
institutions provide financial services in terms of savings services, small loans services which
help in the growth of small and medium enterprises in Kampala U gancla, the smal I and
medium enterprises in Kampala Town Council perform well in relation to profitability, sales
volume and growth in number of customers through offering a variety of quality services to
their customers, and improvement in access of microfinance services increases the level of
growth of small and medium enterprises in Kampala, Uganda and failure to access
microfinance services reduces growth of small and medium enterprises in Kampala, Uganda.
From the findings, the following recommendations were made; microlinance institutions in
Kampala Town Council should always allow small and medium enterprises borrow a specific
amount of money and pay back through regular monthly payments with no collateral required,
small and medium enterprises to carry out promotions in order to increase their business net
profit margins, should also always carry out sales forecasting every month, and this will
increase in growth of number of customers., should use phone calls, e-mails, and personnel
visits to communicate with customers about their products, and this will create a friendly
relationship with the customers hence increasing in the number of customers and should
always make sure that their services and products are reliable to all groups of customers
Description
Research report submitted to the College of Economics and Management Studies in partial fulfillment of the requirements for the Award of Bachelors' Degree in Business Administration of Kampala International University.
Keywords
Microfinance, Services, Growth, Enterprise, Kampala