Factors affecting the performance of small and micro enterprises (SMEs) traders in Uganda: a case study of Nakawa Market

Abstract

This study was conducted in Nakawa market, Kampala Uganda. The objective of the study was to establish the factors affecting the performance of small and medium enterprises (SMEs) traders at Nakawa market in Kampala, Uganda. The research methodology for the study was descriptive cross-sectional research design. The sample size was 102 respondents and simple random sampling was applied in selecting the respondents who were included in the sample. The researcher used questionnaires to collect data and it was analysed using Microsoft Excel, Stata-64 and SPSS version 25 at univariate, bivariate and multivariate levels. The research findings indicated that access to business information services significantly influence the performance of Small and Medium Enterprises, the P-Value (0.003) was less than the critical value (0.05). The study findings also indicated that SMEs funding significantly influences its performance financially since the P-Value (0.000) was less than the critical value (0.05). Gender of business traders insignificantly influences small and medium Enterprises` the performance since the P-Value (0.991) was greater than the critical value (0.05). The study findings also indicated that education level of traders significantly influences the performance of SMEs development in terms of its monthly net profit since (p-value =0.000) was less than the critical value 0.05. The study concluded that both males and females participate in business in market and most of them have undertaken higher education levels that is secondary institutions. The study recommended that further studies should be undertaken on other factors influencing financial performance of Small and Medium Enterprises and should also be done in other areas of the district/country where such studies have not been conducted particularly on effectiveness of government programs, policies and laws governing SMEs in Uganda