Financial Accessibility and Performance of Small and Medium Enterprises in Kabale Municipality-Uganda
The purpose of the study was to establish the relationship between financial accessibility and performance of SMEs in Kabale Municipality. The study was guided by three objectives: to assess the determinants of financial accessibility by SMEs in Kabale Municipality; to establish the performance challenges affecting the growth of SMEs in Kabale Municipality; and to examine the contributions of financial accessibility in supporting performance of SME in Kabale Municipality. A cross-section survey research design using both qualitative and quantitative approaches was used. A sample size of 200 participants was determined from a target population of 360 subjects using both simple random sampling and purposive sampling techniques. Data was collected using interview and questionnaire methods. Data was analysed using both descriptive (mean and standard deviation) and inferential (correlation and regression) statistics. These were aided by SPSS version 20. The findings indicate collateral security as the major determinant of financial accessibility. Low investment potential is the major challenge affecting performance of SMEs in Kabale municipality. There is a moderate positive and significant relationship between financial accessibility and performance of financial accessibility contributing as low as 17.4% of the level of performance of SMEs in Kabale municipality. The study contributes to the existing knowledge on financial accessibility and performance of SMEs by extending the application of the credit access theory and financial intermediation theory. The study recommended that business owners should venture into investment decision making to elevate their investment potential while Bank of Uganda should come up with policies that flexibly enable SMEs to access financial assistance.
A Dissertation Submitted to the Directorate of Postgraduate training in Partial Fulfilment of the Requirements for the Award of a Master’s Degree in Business Administration of Kabale University, Uganda
Financial Accessibility, Performance of Small and Medium Enterprises