Banking Activities And Growth Of Small Scale Enterprises In Uganda: A Case Studyof Delight Supplies Ltd Location: Ka Wempe

ABSTRACT

This study set out to investigate the activities of banking and the growth of small scale

enterprises in Uganda, using the case study of delight supplies limited. For a long time

various financial institutions have provided services to small scale enterprises in Uganda

with the purpose to develop and improve them. However, small scale enterprises

supported by financial institutions have not achieved satisfactory growth levels and the

possible cause includes the un favorable credit terms. The terms comprises of high

interest rate, loan period. and loan repayment schedule and loan size. This study was

conducted with specific objective, to study what kind of facilities are offered by bank to

small scale enterprises, how these facilities are being utilized by small scale enterprises

and to prepare possible recommendations that can be provided to both banks and small

scale enterprises so that they air out their differences.

The study addressed research questions on the activities of banking and growth of small

scale enterprises in Uganda. A case study was adopted as the basic research design but

frequency suppo1ied by others such as qualitative and explanatory. The study purpose

sampled a population of one hundred and twenty employees from top management,

financial and accounts depaiiment, staff and other employees of the organization.

The study used both primary and secondary data obtained from the available sources and

findings from primary sources collected using questionnaires, interviews, and

observations was processed using frequencies . and percentages were used as key tools

to identify the relationship of variables.

The basic findings were that delight supplies limited are currently using the banking

services provided which has contributed to its expansion.

The major conclusion of the study was that banking activities have contributed to the

growth of small scale enterprises in Uganda.

Based on conclusion, the major policy recommendation is that banks should review their

credit terms offered to small scale enterprises. Additionally banks and other financial institutions should consider more support to small scale enterprises. For further research undertakings, it is proposed that investigations be carried out in the area of strategies for client relation of small scale enterprise by financial institutions.