Influence of financial inclusion on rural micro, small and medium enterprises' performance in Uganda. A case study of Manafwa District, Eastern Uganda
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The study presents the influence of financial inclusion on rural micro, small and medium enterprises’ performance in Manafwa District. The study specifically established a relationship among socioeconomic factors of the business operators in a selected counties in Manafwa District and the participation in rural small, micro and medium enterprises. The study adopted a cross-sectional research design whereby data is collected once from the 96 respondents using a well-structured Questionnaire. The primary data collected was analyzed using SPSS at two levels of analysis i.e. Univariate analysis and Bivariate analysis. Also was analyzed using STATA at one level of analysis i.e. multivariate analysis of a logistic regression. An overwhelming majority (62.5%, n=60) of those participating in the business operation in Manafwa were male while 35.5% were Female. The results show that, whereas financial inclusion positively and significantly impacts the operations and growth of rural micro, small and medium scale enterprises, and distance to financial services access points challenged fast and effective access to financial services by rural micro, small medium scale enterprises in Uganda. The model results found out that education level of the business operators is likely increase participation of the small business. Similarly, the results reveals that earnings resulting from engagement in business is more likely to increase participation of business operation. The study recommends that deliberate efforts should be made to spread access points to more rural areas and improve infrastructure to promote Financial inclusion. This should include a policy roadmap for expanding financial services access points to unbanked and underserved areas using the financial services geospatial map.