Interest Rates and Performance of Businesses Case Study; Clients of Tujijenge Uganda Ltd (Microfinance) From Soroti Town

Abstract

Thestudy was about interest rates and performance of businesses a case study of clients of Tujijenge Uganda Limited (microfinance) from Soroti town. Researchobjectives (To find out the relationship between interest rates and business turnover. To investigate the relationship between interest rates and profitability of businesses. To examine the relationship between interest rates and growth of businesses. To assess the relationship between interest rates and pricing of products and service) were set and used to help facilitate the research on how interest rates affect performance of businesses.Data was collected using questionnaires with quantitative questions and open ended questions the respondents were clients of Tujijenge with businesses operating in Soroti town.A total of 52 questionnaires were administered to various clients but the researcher managed to obtain 45 completed questionnaires representing a response rate of 90% .The researcher used three days to obtain this information28th March to 30th March 2015. Collected data was edited, coded and entered for analysis using the Statistical Package for Social Sciences(computer package). Both descriptive and inferential statistics were used. The research findings revealed that interest rates do affect turnover, profitability, growth and to a smaller extent pricing of products and services, the research findings were presented in pie charts, bar graphs, and tables for clarity.

The study therefore concludes and recommends that various lending institutions check their lending rates as per their clients requirements to reduce the interest burden on their clients

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