Determinants of business sustainability among SMEs in Uganda: a case study of Nateete.

Abstract

This research was undertaken to explore the factors that influence sustainable growth of small and medium enterprises, and developed instruments that were used to assess the conditions that need to be present in the business environment in order to enhance the likelihood of successful and sustainable growth of the business. The objectives of the study were to assess how capital structures used by managers influence sustainable growth in SMEs, to examine how competition influences the sustainable growth in SMEs in Nateete Kampala. The descriptive research design was employed and data was collected by means of questionnaires administered to 92 employees of among SMEs in Nateete which was the case on study. Content analysis was also used. The findings indicated that there are necessary strategies to be adopted to ensure that the company remains in constant growth throughout its lifetime without stalling or slowing down which is the case with most SMEs that are lucky enough not to die after a short while. This study recommends the management should embrace the concept of innovation, cost leadership, marketing initiatives, and globalization and also to embrace customer intimacy. Respondents strongly agreed that marketing initiatives have positively impacted on the sustainable growth of the firm and that strategy to move from existing market positions to new markets is equally important in determining the sustainability of the firm’s growth. The study also found out that price reduction is a major factor in sustainable growth in small and medium enterprises. The study further established that sustainable growth at Nateete is brought about by product differentiation and customer intimacy. This study recommends that the management should have a continuous and unending process of marketing initiatives and embrace globalization including franchising and partnerships. The management should also come up with research strategies and embrace innovation and product development to keep the company an edge above the rest.