ABSTRACT
The Small and Medium size enterprises present the most dynamic economic foundation for
growth, income and employment creation. However, this vital sector has been greatly affected by
the high interest rates being charged by financial institutions on borrowed capital in Uganda. The
main objective of the study is to assess the impact of high interest rates on growth and financial
performance of Small and Medium Enterprises. The researcher not only employed cross
sectional research and descriptive but analytical research design also. Data was collected based
on the objectives and questionnaires were distributed to 50 respondents. We established that high
interest rates charged on borrowings has greatly affected the financial performance as well as
investment levels in SMEs forcing investors and potential investors to depend on own savings
and funds from friends and relatives. Also it is well established that long term borrowings was
expensive as it was perceived to be riskier than short term borrowings and the issue of ' held
funds' . All in all we established that the interest rate charged on borrowings play a vital role in
obtaining the finances for SMEs thus determining the growth, financial performance and investment habits in SMEs.
PIUS, E (2021). The Role Of Microfinance Institutions In Poverty Alleviation In Market Vendors Of Kabalagala. Afribary. Retrieved from https://afribary.com/works/the-role-of-microfinance-institutions-in-poverty-alleviation-in-market-vendors-of-kabalagala
PIUS, ENYANO "The Role Of Microfinance Institutions In Poverty Alleviation In Market Vendors Of Kabalagala" Afribary. Afribary, 12 Jun. 2021, https://afribary.com/works/the-role-of-microfinance-institutions-in-poverty-alleviation-in-market-vendors-of-kabalagala. Accessed 22 Nov. 2024.
PIUS, ENYANO . "The Role Of Microfinance Institutions In Poverty Alleviation In Market Vendors Of Kabalagala". Afribary, Afribary, 12 Jun. 2021. Web. 22 Nov. 2024. < https://afribary.com/works/the-role-of-microfinance-institutions-in-poverty-alleviation-in-market-vendors-of-kabalagala >.
PIUS, ENYANO . "The Role Of Microfinance Institutions In Poverty Alleviation In Market Vendors Of Kabalagala" Afribary (2021). Accessed November 22, 2024. https://afribary.com/works/the-role-of-microfinance-institutions-in-poverty-alleviation-in-market-vendors-of-kabalagala