Abstract
There is consensus among policy makers, economists, and business experts
that small and medium enterprises (SMEs) are drivers of economic growth. A
healthy SME sector contributes prominently to the economy through
creating more employment opportunities, generating higher production
volumes, increasing exports and introducing innovation and
entrepreneurship skills. The dynamic role of SMEs in developing countries
insures them as engines through which the growth objectives of developing
countries can be achieved. It is estimated that SMEs employ 22% of the
adult population in developing countriesl. United Nations Industrial
Development Organisation (UNIDO) estimates that SMEs represent over 90%
of private business and contribute to more than 50% of employment and of
gross domestic product (GDP) in most African countries (UNIDO, 1999). A
recent study conducted by Abor and Quartey (20 1 0) estimates that 91% of
formal business entities in Uganda are SMEs, and that these SMEs
contribute between 52 to 57% to GDP and provide about 61% to
employment.
One of the significant characteristics of a flourishing and growing economy
is a vibrant and blooming SME sector. SMEs play a pivotal role in the
development of a nation. They contribute to socioeconomic development in
various ways; namely, by creating employment for a rural and urban
growing labour force and providing desirable sustainability and innovation
in the economy as a whole. Fayad (2008) propounds that most of the current
multi-million dollar enterprises have their origin in SMEs. Nevertheless,
SMEs in developed and less developed countries (LDCs), as in other
countries, are still facing a number of difficulties and obstacles that are
impeding and complicating their operations and growth.
WAH, W (2021). The impact of financial management on the growth of small and medium enterprises. A case study: uganda simba telecom. Afribary. Retrieved from https://afribary.com/works/the-impact-of-financial-management-on-the-growth-of-small-and-medium-enterprises-a-case-study-uganda-simba-telecom
WAH, WOBUSOlJOZI "The impact of financial management on the growth of small and medium enterprises. A case study: uganda simba telecom" Afribary. Afribary, 11 Jun. 2021, https://afribary.com/works/the-impact-of-financial-management-on-the-growth-of-small-and-medium-enterprises-a-case-study-uganda-simba-telecom. Accessed 28 May. 2022.
WAH, WOBUSOlJOZI . "The impact of financial management on the growth of small and medium enterprises. A case study: uganda simba telecom". Afribary, Afribary, 11 Jun. 2021. Web. 28 May. 2022. < https://afribary.com/works/the-impact-of-financial-management-on-the-growth-of-small-and-medium-enterprises-a-case-study-uganda-simba-telecom >.
WAH, WOBUSOlJOZI . "The impact of financial management on the growth of small and medium enterprises. A case study: uganda simba telecom" Afribary (2021). Accessed May 28, 2022. https://afribary.com/works/the-impact-of-financial-management-on-the-growth-of-small-and-medium-enterprises-a-case-study-uganda-simba-telecom