Micro Finance Services and the Performance of Small and Medium Enterprises in Uganda. Case Study of Finca Microfinance Bank Limited in Kamuli District
Year: 2016
Author: SSEKEZI IMMACULATE P
Supervisor: Edward Ssemwogerere Anselm
Abstract
The purpose of this study was to examine the effects of micro finance services and the performance of small and medium enterprises in Finca Micro Finance Bank Limited in Kamuli District. Micro finance services were conceptualized into micro loans, micro savings and micro insurance. Performance of small and medium enterprises was conceptualized into sales turnover, liquidity and market share. The research objectives of the study were; to assess the effects of micro loans, micro savings and micro insurance on the performance of small and medium enterprises.
A structured questionnaire was designed and distributed to 90 respondents that were selected from a targeted population of 105 using stratified random sampling. Quantitative data were analyzed by generating descriptive statistics using the Statistical Package For Social Scientists (SPSS) to determine the frequency and the percentage. Content analysis technique was used to analyze qualitative data.
Research findings indicated that there was a significant positive relationship between micro finance services and the performance of small and medium enterprises. The overall independent dimensions of micro finance services which were; micro loans, micro savings and micro insurance accounted for the highest percentages of the respondents that strongly agreed on their positive influence on the performance of small and medium enterprises. The findings also indicated that micro loans were the strongest predictors on the performance of small and medium enterprises and they positively influenced the performance of small and medium enterprises. The researcher recommends that Micro Finance Institutions in general and Finca Micro Finance Bank Limited in particular should devise ways and strategies of improving on the performance of small and medium enterprises very effectively and efficiently to circumvent its adverse effects.
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