TABLE OF CONTENTS
Cover page ................................................................................................................................ i
Title page ............................................................................................................................... ii
Declaration page ..................................................................................................................... iii
Approval page ....................................................................................................................... iv
Dedication ............................................................................................................................... v
Acknowledgment .................................................................................................................... vi
Table of contents ................................................................................................................... vii
List of tables ........................................................................................................................ viii
Abbreviations ......................................................................................................................... ix
Abstract .................................................................................................................................. x
CHAPTER ONE: GENERAL INTRODUCTION
1.0 Introduction .................................................................................................................... I
1.1 Background of the study ................................................................................................ I
1.2 Statement of the problem ................................................................................................ 3
1.3 Objective of the study ..................................................................................................... 4
1.4 Specific objectives of the study ...................................................................................... 4
l .5 Research Questions ........................................................................................................ 4
l .6 The scope of the study ...................................................................................................... 4
1.7 Significance of the study ................................................................................................. 5
I . 8 Conceptual framework .................................................................................................... 6
CHAPTER TWO: LITERATURE REVIEW.
2.0 Introduction ...................................................................................................................... 8
2.1 Concept of micro finance .................................................................................................. 8
2.2 Effect of microcredit on profitability ................................................................................ 9
2.3 Effect of training on profitability .................................................................................... 11
2.4 Relationship between micro financing and performance of small businesses ............. 12
2.5 Conclusion ...................................................................................................................... l 3
CHAPTER THREE: RESEARCH METHODOLOGY.
3.0 Introduction .................................................................................................................... 14
vii
3. I Research design .............................................................................................................. 14
3 .2 Study population ............................................................................................................. 14
3.3 Sample Size .................................................................................................................... 15
3.4 Sampling procedure ........................................................................................................ 15
3 .5 Data collection sources .................................................................................................... I 5
3.5.1 Primary data sources ........................................................................................................ 15
3.6 Data collection methods and tools ................................................................................... 16
3 .6.1 Survey data collection method ........................................................................................ 16
3.7 Data processing, analyzing, presentation and limitations of the study ............................ 16
3. 7. I Data processing ................................................................................................................ 16
3.7.2 Data analysis .................................................................................................................... 16
3. 7.3 Data presentation ............................................................................................................. 17
3.7.4 Limitations of the study ................................................................................................... 17
CHAPTER FOUR: DATA PRESETATION, ANALYSIS AND INTERPRETATION OF
FINDINGS.
4. 0 Introduction ..................................................................................................................... 18
4.1 Background of the respondents ...................................................................................... 18
4.2 Conclusion ....................................................................................................................... 49
CHAPTER FIVE: SUMMARY, CONCLUSION AND RECOMMENDATION
5.0 Introduction .................................................................................................................... 50
5.1 Summary of findings ...................................................................................................... 50
5.2 Conclusions .................................................................................................................... 57
5.3 Recommendations .......................................................................................................... 57
5.4 Suggestions for further research ..................................................................................... 58
REFERENCES ........................................................................................................................ 59
Appendix I: Questionnaire for Small Business owners ........................................................... 62
Appendix 2: Letter of introduction from Uganda Martyrs University
ABSTRACT The purpose of the study was to establish the extent to which micro financing/loans affect the performance of small businesses in Uganda. The objectives were to identify the effect of micro credit on profitability of small businesses, to identify the effect of training of small business owners and to identify the relationship between microfinance loans and performance of small businesses. The research design used was cross sectional and descriptive research designs to collect qualitative and quantitative data. The study was carried out on forty ( 40) respondents and they included small business owners in Mbale Municipality. Primary data refers to raw facts that are gathered originally for the first time for a specific research problem. At the primary level small businesses were surveyed and choosing samples from each stratum. Questionnaire tool was be used to gather data. The findings of the study were analyzed and presented in the research report. Data analysis was conducted. The aspects of micro financing include credit and training versus performance of SBs. The business development services ( credit and training) that are offered by MF!s are intended to develop the capacity of small business owners in managing their businesses. However as seen from the findings and analysis, the impact of credit and training as offered by the MF!s on the performance of SBs was moderate. Based on the findings of the study, the following conclusions were made; The study concludes that micro financing had moderate effect on the performance of small businesses in Mbale municipality. There is a positive correlation between the performance of SBs and access to micro finance services.
