Provision of Managerial Skills by Micro Credit Institutions and Sustainability of MSMEs During COVID-19 Pandemic in Kigezi Region South Western Uganda

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Date

2022

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Science Publishing Group

Abstract

The study looked at how the services provided by microcredit institutions affected the viability of micro, small, and medium-sized businesses in the Kigezi region of South-Western Uganda during the COVID-19 pandemic. The specific objectives were to: Examine the impact of microcredit institutions' provision of managerial skills on MSMEs' ability to survive the COVID-19 pandemic in Uganda's Kigezi Sub-Region. The study was carried out in Uganda's Kigezi region. Six districts make up the region: Kabale, Kisoro, Kanungu, Rukungiri, Rubanda, and Rukiga. Southwest Uganda is home to the Kigezi region. Yamane's sampling formulas were used to calculate the sample size, which was based on a 5% level of precision. Descriptive and cross-sectional surveys, as well as an additional interview, were used in the study to collect data from various MSMEs records and panel procedures. A cluster sampling technique was used to choose the respondents from the businesses. Enterprises' owners and managers were the units of inquiry due to their importance as custodians of information on all the activities taking place in their respective MSMEs. The research population was separated into clusters (areas or districts) and the appropriate sample was recruited using simple random sampling. The study used an interviewer-administered structured questionnaire to collect the data. Results show that training in managerial skills has a significant impact on MSMEs' sustainability The findings demonstrate a statistically moderately significant and favorable association between microcredit institutions' provision of managerial skills and the viability of MSMEs (r=0.479**, p0.01). The null hypothesis was thus disproved. This suggests that microcredit institutions' provision of managerial skills has a beneficial impact on the viability of MSMEs during the COVID-19 epidemic in Uganda's Kigezi Sub-Region. The researchers advise emphasizing training (managerial skills), especially in financial management to support their clients in regularly improving their business performance, and most cases should be tailored toward the training needs of the clients. The study finds that increasing Saving Accounts and Training in Managerial Skills will increase Micro-Credit Institutions Services. The researchers advise using various marketing tactics as well as client sensitization

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Keywords

Managerial Skills, Micro-Credit Institution’s Services, Sustainability, Micro, Small and Medium Scale Enterprises, COVID-19 Pandemic, Kigezi Region, South Western Uganda

Citation

Agaba Moses, Kaaya Siraj, Kyabarongo Benon. Provision of Managerial Skills by Micro Credit Institutions and Sustainability of MSMEs During COVID-19 Pandemic in Kigezi Region South Western Uganda. Science Journal of Business and Management. Vol. 10, No. 4, 2022, pp. 166-175. doi: 10.11648/j.sjbm.20221004.12