The role of Commercial banks in the performance of small scale and medium Enterprises: a case of Equity Bank
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Date
2019-02
Authors
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Publisher
Kampala International University; College of Economics and Management
Abstract
This research report was written as a requirement for the partial fulfillment for the award of a Bachelor‘s Degree of Business Administration of Kampala International University. This dissertation explores the role played by commercial banks in the performance of small scale enterprises. The study used equity bank as the case study. The objectives of this study were to establish the effect of bank credits to the performance of the small scale enterprises in Uganda, to establish the contribution of bank credits in revitalizing the small scale industry in Uganda, to establish the problem faced by commercial banks in financing small scale enterprises in Uganda and to find out the problems facing the small scale enterprises in obtaining loans from commercial banks. Survey research design was used during the study and data was collected by the use of research questionnaires. The research findings showed that commercial banks play a big role in the performance of small scale enterprises in Uganda. The bank loans that are given by the banks not only serve to grow and expand small scale businesses bait also to increase on their stock capital in circumstances where there is a decrease. The other role that was identified was the improvement in the quality and quantities produced by a particular firm. Moreover, the research findings showed many small scale enterprises and the banking institutions themselves grapple with a slot of challenges that hinder the process of credit creation. The problems that were identified by this study were the lack of collateral security. This problem affects both the small scale enterprises and the banks themselves. It is a big challenge that stops many small scale businesses to acquire loans from banks. The researcher recommended that banks harmonize the collateral securities and interest rates to make it easy for small scale businesses to also attain loans that may serve to improve on their performance
Description
A research report submitted to the College of Economics and Management in partial fulfillment of the requirements for the award of the Bachelor's Degree of Business Administration (Accounting And Finance) of Kampala International University
Keywords
Commercial banks, Performance of small scale and medium enterprises