Factors affecting performance of small and medium enterprises (smes) in Kawempe division
Abstract
The study sought to establish the factors affecting the performance of micro and small enterprises
in Kawempe Division, Kampala district. The study adopted a cross sectional study design and the
sample size was 60 respondents. A total of 60 questionnaires was administered and fully responded
to a response rate of 100%. The objectives of the study included; (i) To examine the impact of
demographic characteristics (age, education status and gender) on SME performance, (ii) To
examine the impact of socio-economic characteristics on SME performance and (iii) To establish
strategies on how to address the challenges affecting the performance of small and medium
enterprises. The study established that demographic characteristics such as age, gender, number of
dependents, respondent’s level of education, marital status and duration of business operation had
a significant relationship on SME performance. The study established that access to finance
affected SME performance at 66.67% followed by availability of managerial experience, access
to business information, and finally access to infrastructure. This strategically indicates that
government should increase access to finance for SMEs through credit facilitation from banks and
microfinance institutions.
The study recommended that Government of Uganda and developmental partners should offer
credit facilities to support SME performance the already existing programmes such as Entandikwa,
Operation Wealth Creation (OWC), NAADS, Youth Livelihood programme should be effectively
supervised, Microfinance and banking institutions should enhance effective provision of credit
facilities to SME business, need to offer business management training courses and starter
programmes to SME owners in Kawempe Division and the tax authorities i.e. URA and KCCA
should institute better tax regimes aimed at having better tax reforms in Kawempe division.