Business Strategy and Performance of Small and Medium Scale Enterprises in Kaabong District, Karamoja - Uganda

ABSTRACT 

The study sought to establish the relationship between business strategy and performance of small and medium enterprises in Kaabong district. The study was guided by three specific objectives, that included i) determining the extent of business strategy; ii) level of performance of small and medium enterprises and (iii) the relationship between business strategy and performance of small and medium enterprises in Kaabong district. This research employed descriptive correlational design to describe the relationship between business strategy and performance of small and medium enterprises in Kaabong district. The findings revealed the following: majority of respondents in this sample ranged between 31-40 years and these were male (56.8%) and had only attained certificate as their highest academic qualification (62.1%) and had an experience of 9 years and above (37.1%). Data analysis using means connoted that extent of business strategy was found to be low, the level of performance of small and medium enterprises was found to be high and this was indicated by the overall mean (mean=2.81). Business strategy and performance of small and medium enterprises are positive and significantly correlated. The researcher concluded that; concluding that the small and medium enterprises in Kaabong district have limited resources which cannot make them pursue internationalization/globalization and retrenchment which involves cutting back to focus on business best lines, the small and medium scale businesses in Kaabong district are able to work at a break even though their buiness strategies are still poor, and better business strategies increase the level of performance of small and medium enterprises in Kaabong district, and poor business strategies reduce it. The researcher recommended that; the small and medium business owners in Kaabong district to diversify their businesses through developing new product markets outside, should make sure that their businesses are typically and highly centralized through pursuing different globalization strategies, should always sell some of excess products outside Kaabong district, and later out side Uganda and make sure that the shareholders receive relatively high returns.

TABLE OF CONTENTS

DECLARATION A

DECLARATION B

DEDICATION iii

ACKNOWLEDGEMENT iv

TABLE OF CONTENTS v

LIST OF TABLES viii

LIST OF FIGURES ix

ABSTRACT x

CHAPTER ONE ............... 1

Introduction 1

1.1 Background of the Study 1

Li.1 Historical perspactive i.

1.1.2 Theoretical perspective 3

1.1.3 Conceptual perspective 3

1.1.4 Contextual perspective 4

1.2 Statement of the problem 6

1.3 Purpose of the study 7

1.4 Research objectives 7

1.4.1 General Objective 7

1.4.2 Specific Objectives 7

1.5 Research hypothesis 8

1.6 Scope of the study 8

1.6.1 Geographically scope 8

1.6.2 Theoretical scope 8

1.6.3 Content scope 9

1.6.4 Time scope .9

1.7 Significance of the study 9

1.8 Operational definition of key terms 11

CHAPTER TWO .........2

REVIEW OF RELAIED LITERATURE ............................... 12

Introduction 12

2.2 Theoretical frame work 12

2.4 Related studies 14

2.5 Identifying the gap 26

CHAPTER THREE ........................... 27

METHODOLOGY. ..................... 27

3.1 Introduction 27

3.2 Research design 27

3.3 Research population 27

3.4 Sample size 27

3.5 Sampling procedure 28

3.6 Research instrument 28

3.7 Validity and reliability of the instrument 28

3.8 Data gathering procedures 29

3.9 Data analysis 30

3.10 Ethical considerations 31

CHAPTER FOUR ...................................... 32

PRESENTATION, ANALYSIS AND INTERPRETATION OF RESULTS ~ a, 32

4.1 Introduction 32

4.2 Profile of respondents 32

CHAPTER FIVE • 4.0

DISCUSSIONS, CONLUSIONS AND RECOMMENDATIONS .40

5.1 Introduction 40

5.2 Discussions 40

5.3 Conclusions 43

5.4 Recommendation 44

5.5 Areas for further research 45

REFERENCES 46

APPENDICES 50

Appendix 1: Transmittal Letter 50

Appendix II: Introauction letter 51

Append~x III: Informed Consent

ADpendix IV: Research Instrument (Questionnaire) 53

Appendix V: Curriculum Vitae 57