FINANCIAL ACCESSIBILITY AND GROWTH OF SMALL SCALE BUSINESSES IN BUSOBA SUB-COUNTY MBALE DISTRICT IN UGANDA.

TABLE OF CONTENTS

DECLARATION

APPROVAL ii

DEDICATION iii

ACKNOWLEDGEMENTS iv

ABSTRACT viii

LIST OF ACRONYMS ix

CHAPTERONE 1

INTRODUCTION 1

1 .0 Introduction 1

1.1 Background ofthe study 1

1 .2 Statement ofthe problem 4

1.3 Purpose olthe study 5

1.4 Objectives ofthe study 5

1.5 Research questions 5

1.7 Scope ofthe study 5

1.7.1 Subject Scope 5

1.7.2 Geographical Scope 5

1.7.3 Time Scope 6

1 .8 Significance ofthe study 6

CHAPTER TWO 7

LITERATURE REVIEW 7

2.0 Introduction 7

2.1 Theoretical Review 7

2.3 Review of related Literature 8

2.3.1 Level offinancial accessibility financing to small businesses 8

2.3.2 Small Scale business growth 10

2.3.3 Challenges affecting small business growth and development 11

2.4 Empirical Review (Impact offinancial accessibility on growth of SSBs) 13

2.5 Research Gaps 16

CHAPTER TI-IREE 17

METHODOLGY 17

3.1 Research design 17

3.2 Target population 17

3.3 Sample size.17

3.4 Data collection instruments 18

3.4.1 Questionnaire 18

3.5 Data analysis 18

3.6 Validity and Reliability 18

3.7 Limitation ofthe study 18

CHAPTER FOUR 20

DATA PRESENTATION, ANALYSIS AND INTERPRETATION 20

4.0 Introduction 20

4.1 Demographic aspects of respondents 20

4.1.1 Gender of Respondents 20

4.1.2 Age distribution ofrespondents 21

4.1.3 Academic Qualifications of respondents 21

4.1.4 Marital Status ofrespondents 22

4,1,5 For how long have you been in this organization 22

4.2 Level of financial accessibility by Small Scale Business in Busoba sub-county 23

4.2.1 Level of financial accessibility by Small Scale Business in Busoba sub-county 23

4.3.2 Level of financial accessibility by SSBs in Busoba sub-county 24

4.3 Level of growth of SSBs in Busoba sub-county 26

4.4 .2 Whether market operations in SSBs in Busoba sub-county grow at a high rate 26

4.4.2 Level of growth of SSBs in Busoba sub-county 27

4.4.1 Impact of financial accessibility on the growth of SSBs in Busoba sub-county 29

4.4.1 Whether financial accessibility has a positive impact on the growth of SSBs in Busoba subcounty 29

4.4.2 Impact offinancial accessibility on the growth of SSBs in Busoba sub-county 30

CHAPTER FIVE 33

5.0 Introduction 33

5.1 Discussion offindings 33

5.2 Conclusion 35

5.3 Recommendations 35

5.3.1 Level offinancial accessibility by SSBs in Busoba sub-county 35

5.3.2 Level of growth of SSBs on growth of SMEs 36

5.3.1 Impact offinancial accessibility on the growth of SSBs in Busoba sub-county 36

5.4 Areas for Further Research 37

REFERENCES .38

Appendices i: Appendix I: Research Questionnaire 41

Appendix ii: Actual Research Time frame 45

Appendix iii: Research Budget 46

ABSTRACT 

The purpose of the study is to examine the relationship between financial accessibility and growth of SSBs in Uganda. The study objectives were to establish the level of financial accessibility by SSBs in Busoba sub-county, to examine the level of growth of SSBs and to examine the impact of financial accessibility on the growth of SSBs in Busoba sub-county. The study was conducted based on 60 Small scale businesses in Busoba sub-county located in Kampala. The data was collected using the research questionnaires. The research used a descriptive case study design were data was collected from across a population at one point in time using the research questionnaires in the presentation of both quantitative and qualitative research design. The study findings according to the respondents on the first objective concluded that financial accessibility in SSBs in Busoba sub-county reveal that business finance is accessed through profits, sales revenue and loans provided from the different lenders to the SSBs in their operations. Regarding the second research objective the researcher contend that there is constrained growth of the SSBs that has constrained and reduced the business operating capacity for reduced trade and limited expansion while on the third objective financial accessibility had an average impact on the growth of SSBs in Busoba sub-county. It therefore imply that issues of the financial accessibility if enhanced can generate value necessary for the development of the country. The recommendations include that management at lenders needs to understand that their image is based upon a customer’s’ unique experience. The study suggests that loan disbursements are necessary for operation of SSBs, the terms and conditions of providing SSBs need to be revised to enable SSBs attain full value of the finance accessed The study suggests that the there is need to increase on the grace period that is to say periods within which loans can be paid back, the improvement and extension of the grace period will effectively enhance capacity to pay loans. On the second objective the researcher recommends for the provision of conducive organizational environment where by their staff are provided with the relevant tools, facilities, and incentives that enable them work comfortably There is need to increase on the product portfolios offered to the rural people. There is need to lower the interest rates charged on the loans secured. On the third objective, there is need to maintain a positive relationship between financial accessibility and growth of SSBs in the study suggests that in order to improve the performance of SSBs. There is need to improve their credit terms because the findings indicate that they are not favorable but in my opinion in order for SSBs to improve their performance.