ACCESS TO MICRO-CREDIT AND THE GROWTH OF SMALL AND MEDIUM ENTERPRISES (SMES) IN UGANDA. A CASE STUDY OF KAMPALA-INDUSTRIAL AREA KAMPALA DISTRICT

ABSTRACT

The purpose of the study was to establish the relationship between access o micro credit

and the growth of small and medium scale enterprises in Uganda.

The study was guided by the following research objectives; to examine access to micro

credit and the growth of small and medium enterprises in Uganda, to examine the rate of

growth of SMEs accusing micro credit facilities in Uganda and to establish the relationship

between access to micro credit and growth of SMEs in Uganda.

The study was a cross sectional survey with a sample of 50 respondents comprising of

small enterprises' owners, employees from lending institutions and SMEs, workers as well,

as customers. Persons from government agencies like USSA and UlA were also selected for

this study. The data was collected using self administered questionnaires within the

confines of Kampala- industrial area. The data was analyzed using frequency tables and

charts spearman rank correlation was used to establish the relation between the study

variables.

Results of the study showed there was a significant positive relationship between access to

micro credit and the growth of SMEs in Uganda.

The researcher recommends that SMEs owners should acknowledge the contribution of

credit facilities towards the growth of their enterprises and thus should devise means to

overcome the challenges of inadequate collateral a high rates of interest entrenched in

accusing credit facilities from micro credit lending institutions targeting at SMEs as their

niche should also soften their lending terms. This is likely to increase access to micro credit•

facilities and accelerate sustainable growth of SMEs

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