Debt management policies and performance of small scale businesses in Jinja district-Uganda
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Date
2018-06
Authors
Journal Title
Journal ISSN
Volume Title
Publisher
Kampala International University, College of Economics and Management.
Abstract
The study sought to assess the effect of debt management policies on performance of small-scale businesses in jinja-Uganda. it was guided by three specific objectives, that included i) to determine the effect of re viewing interest rates on performance of small scale businesses in jinja district, to establish the effect of negotiating with suppliers’ on performance of small scale businesses in jinja district and to establish the relationship between debt management policies and financial performance of small scale businesses in jinja district. this research employed cross~-sectional’, survey and descriptive research design to describe the variables and the questionnaire and interview guide were used as the research instruments. descriptive statistics were used in this study included frequencies, means and regression analysis on variables. the findings revealed the following; the findings indicated that reviewing interest rates significantly affects the performance of small-scale businesses in jinja district, this effect therefore implies that reviewing interest rates highly contribute to the performance of small-scale businesses in jinja district Uganda, the findings revealed that there is a significant effect negotiating with suppliers has on performance of small-scale businesses in jinja district, findings of this study proved a positive significant relationship, between debt management policies and performance of small scale businesses in jinja district. still the conclusions were that; there is a positive significant effect reviewing interest rates has on performance of small-scale businesses in jinja district, effective negotiating with suppliers significantly improves performance of small-scale businesses in jinja district. debt management policies are highly related to the performance of small-scale businesses in jinja district Uganda. the researcher recommended that the; owners of small scale businesses should develop a good system to monitor debt payments, record and track all the debt payments so that there is effectiveness in payment of debt and ensure to cover loopholes in the system to enhance performance, owners and managers of small scale businesses should develop negotiating with suppliers system for example alternatives ways of collecting cash from customers which makes negotiating with suppliers easy and flexible so as to boost performance, and finally owners of small scale businesses should develop a debt management system and make sure they always have a debt plan that enables them have minimum cash balances at all times, this will help them control debts and hence increase in the performance of their businesses. contribution to knowledge; the following are the debt management techniques used in maintaining the performance of small-scale businesses in jinja district; reviewing /17 interest rates and negotiating with suppliers. the following are the measurements of performance in small scale businesses in jinja district; profitability levels and sales growth.
Description
A research dissertation submitted in partial fulfillment of the requirements for the award of bachelor’s degree in business administration of Kampala International University
Keywords
Debt management, Small scale businesses, Jinja District