| dc.description.abstract | Despite the paramount importance and significance of Medium small scale and medium sized
enterprises to the contribution of economic growth of developing nations like Uganda,
MSME’s across the whole world are still facing numerous challenges that inhibit MSME’s’
growth. The general objective of this study was to determine the influence of internal and
external factors on the growth of Medium small scale and medium sized enterprises in
Rubaga division, Kampala Uganda. Six hypotheses relating internal (management
competence, business plan, and technology) and external factors (access to finance, taxes, and
markets) to Medium small scale and medium sized enterprises growth were tested.
Theoretically, two theories- the Resource dependence theory and transactional cost theory
guided the study. The conceptual framework was developed in line with the specific
objectives and hypotheses as presented in chapter one. Questionnaire instrument used to
collect the primary data. The study used survey design with a targeted population of 130
registered MSME’s in Rubaga division. A sample of 98 registered MSME’s was involved in
this study. Descriptive statistics, reliability analysis, validity analysis, correlation analysis and
multiple regression analysis were used as presented in chapter four. The results of six
hypotheses: H1 indicate that that there are significant effects of management competence (p value = 0.001), H2 indicate non-significant effect for business plan at (p –value = 0.078, p >
0.05), H3 indicated significant effect for firm technology p-value = 0.016 on growth of
MSME’s in Rubaga division. On the other side for H5 the study also found negative effects
of high tax (p-value = 0.016) and H6 market constraints on MSME’s growth (p-value =
0.007). Unfortunately, for H4 the study found no significant effect of financial constraints on
Medium small scale and medium sized enterprises growth in Rubaga division. The study
concludes that MSME’s growth in Rubaga division and Uganda at large are hindered by
internal (management competence and firm technology) and external factors (high taxes and
market constraints). The study recommends that Medium small scale and medium sized
enterprises have to ensure improving the levels of managerial competence and skills in order
to foster Medium small scale and medium sized enterprises growth, ensure effective
preparation, use of business plans and ensure adoption of new technology for Medium small
scale and medium sized enterprises | en_US |
