Credit Financing and Financial Performance of Small and Medium Enterprises in Kasese District
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Date
2018-07
Authors
Journal Title
Journal ISSN
Volume Title
Publisher
Kampala International University, College of Economics and Management
Abstract
The study looked at "credit financing and financial performance of small and medium
enterprises in Kasese district". The findings were interpreted, analyzed and discussed in
relation to the objectives of the study as follows; to establish relationship between credit
terms and financial performance of SMEs in Kasese district, to establish the relationship
between access to credit and financial performance of SlYIEs in Kasese district and to
examine the relationship between Credit policy and financial performance of SMEs in
Kasese district
The research utilized literature from great authors such as (Babbie, E. (2001). The
research used a correlational and analytical research design to come up with findings.
Research data was collected using a random sampling technique. The study employed
questionnaires.
From the correlation results, the adjusted R-squared is a corrected goodness-offit
(modal accuracy) it identifies the percentage of variance in the dependent variable,
.financial performance that is explained by the independent variable credit financing. in
this case 68.3% of financial performance in Kasese is contributed by credit financing.
The remaining 31. 7% is contributed by other factors such as; government policy, training
and development and others.
The Rand Adjusted R square values. The R-value represented the simple correlation and
is 0.953", 'which represents a high degree of correlation. The adjusted R-squared is a
corrected goodness-of fit (modal accuracy) it identifies the percentage of variance in the
dependent variable, financial performance that is explained by the independent variable
credit financing.
In conclusion therefore the study showed a very strong positive relationship between
credit financing (independent variable) and financial performance (dependent variable).
It shows that through bivariate means, the correlation between credit financing and
financial performance is r=0.953**.
Description
A Research Report Submitted to the College Of Economics and Management In Partial Fulfillment o the Requirements of the Award of the Degree In Bachelors of Business Administration Of Kampala International University
Keywords
Credit Financing, Small and Medium Enterprises, Kasese District