Financial accessibility and growth of small scale businesses in busoba sub-county Mbale district in Uganda

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Kampala International University, College of Economics and Management
The purpose of the study is to examine the relationship between financial accessibility and growth of SSBs in Uganda. The study objectives were to establish the level of financial accessibility by SSBs in Busoba sub-county, to examine the level of growth of SSBs and to examine the impact of financial accessibility on the growth of SSBs in Busoba sub-county. The study was conducted based on 60 Small scale businesses in Busoba sub-county located in Kampala. The data was collected using the research questionnaires. The research used a descriptive case study design were data was collected from across a population at one point in time using the research questionnaires in the presentation of both quantitative and qualitative research design. The study findings according to the respondents on the first objective concluded that financial accessibility in SSBs in Busoba sub-county reveal that business finance is accessed through profits, sales revenue and loans provided from the different lenders to the SSBs in their operations. Regarding the second research objective the researcher contend that there is constrained growth of the SSBs that has constrained and reduced the business operating capacity for reduced trade and limited expansion while on the third objective financial accessibility had an average impact on the growth ofSSBs in Busoba sub-county. It therefore imply that issues of the financial accessibility if enhanced can generate value necessary for the development of the country. The recommendations include that management at lenders needs to understand that their image is based upon a customer’s’ unique experience. The study suggests that loan disbursements are necessary for operation of SSBs, the terms and conditions of providing SSBs need to be revised to enable SSBs attain full value of the finance accessed The study suggests that the there is need to increase on the grace period that is to say periods within which loans can be paid back, the improvement and extension of the grace period will effectively enhance capacity to pay loans. On the second objective the researcher recommends for the provision of conducive organizational environment where by their staff are provided with the relevant tools, facilities, and incentives that enable them work comfortably There is need to increase on the product portfolios offered to the rural people. There is need to lower the interest rates charged on the loans secured. On the third objective, there is need to maintain a positive relationship between financial accessibility and growth of SSBs in the study suggests that in order to improve the performance of SSBs. There is need to improve their credit terms because the findings indicate that they are not favorable but in my opinion in order for SSBs to improve their performance.
A research dissertation submitted to the College of Economics and Management as partial fulfillment of the requirements for the award of Bachelor’s Degree in Business Administration (Accounting & Finance) of Kampala International University Uganda
Financial accessibility, small scale businesses, busoba sub-county, Mbale district, Uganda