Micro financing and performance of small businesses: a case of Mbarara Municipality
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Date
2018-05
Authors
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Publisher
Kampala International University: College of Economics and management
Abstract
The purpose of the study was to establish the extent to which micro financing/loans affect the performance of small businesses in Uganda. The objectives were to identify the effect of micro credit on profitability of small businesses, to identify the effect of training of small business owners and to identify the relationship between microfinance loans and performance of small businesses. The research design used was cross sectional and descriptive research designs to collect qualitative and quantitative data.
The study was carried out on forty ( 40) respondents and they included small business owners
in Mbale Municipality. Primary data refers to raw facts that are gathered originally for the first
time for a specific research problem. At the primary level small businesses were surveyed and
choosing samples from each stratum. Questionnaire tool was be used to gather data. The findings of the study were analyzed and presented in the research report. Data analysis was conducted. The aspects of micro financing include credit and training versus performance of SBs. The
business development services ( credit and training) that are offered by MFIs are intended to develop the capacity of small business owners in managing their businesses. However as seen from the findings and analysis, the impact of credit and training as offered by the MFIs on the performance of SBs was moderate. Based on the findings of the study, the following conclusions were made; The study concludes that micro financing had moderate effect on the performance of small businesses in Mbale Municipality. There is a positive correlation between the performance of
SBs and access to micro finance services.
Description
Research report submitted to the College of Economics and Management in partial fulfillment of the requirements for the Award of Bachelors Degree of Business Administration (Accounting and Finance) of Kampala International University
Keywords
Micro financing, Performance, Small businesses, Uganda