Factors leading to breakdown of Small and Medium Enterprises in Adjumani District, Uganda
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Many SMEs are likely to close, about 50% of informal businesses. This study attempted to assess the factors that are leading to the breakdown of small and medium enterprises (SMEs) in Adjumani District in Uganda. The aim of this study was to provide the knowledge to the people in the region on how they should start and manage their SMEs. The factors tested were: Demographic characteristics (Gender, Age of SMEs Owners/Managers and Education level of SMEs Owners/Managers): Business characteristics (Class of the SMEs, Primary business Activities, Age of SMEs and Legal status of SMEs) and Business characteristics (Financial Record, Marketing Strategy, Challenging factors) against SMEs Performance measured in terms of financial trend. Factors leading to breakdown of SMEs are majorly Finance, Marketing, Management, Skilled personnel and others as shown in table 13. Therefore, there is a need for policy makers to make sure that education is given to the SMEs owners, managers and the employees together, with supporting them, if possible there is a need of having curriculum in primary and secondary schools by making business and entrepreneurship subjects as compulsory subjects, this will help to equip learners with appropriate business and entrepreneurial knowledge and skills which will encourage them to start and manage business successful. There is also, a need for the government to make sure that, businessmen and women are enabled to have access to loans (credits) with reasonable conditions from banks and other financial intermediaries for expanding their businesses; also soft loans should be provided to those who want to start new businesses. There is also, a need to put more emphasis on how to encourage women to engage in SMEs business and lastly there is a need to make sure that education on saving behavior is encouraged among the people in the study area.