A Study of the Performance of Micro Businesses in Kampala District: A Case Study of Meat Butcheries in Kawempe Division Kampala District
Abstract
The study explored the performance of Micro business and for this study butchery businesses were considered, the study specifically established a relationship between performance in terms of profits earned by butcher men and the daily operating capital incurred in purchasing daily meat to be sold in the butchery in Kawempe Division, Kampala District. The study adopted a non-experimental design called descriptive survey research design whereby data was collected once from 60 respondents using a well-structured questionnaire. The primary data collected was analyzed using SPSS at three levels of analysis i.e. descriptive statistics at Univariate, chi – square test statistic at bivariate and a multiple linear regression was employed at multivariate analysis.
All respondents engaged in butchery business were males aged from 18 years and above, majority of them were aged between 18 and 25 years (36.7%), more than half of the respondents had attained secondary level of education (56.7%), 55.0% of the respondents were married, their experience in the butchery business ranged from 3 months to 35 years and on average the butcher men’s experience was found to be 8 years, butchery in Kawempe division were found to have been in a range of 2 months to 40 years in operation with mean years of operation of 9 years, many of the butchery business in this area were found to be sole proprietorship business (70.0%), 85.0% of the butchery businesses started with 1 to 2 employees and majority of the butchery were employing between 1 to 2 employees currently with 63.3%. The maximum operating capital of the respondents was found to be 4,750,000 shillings with the minimum being 230,000 shillings and on the average their daily operating capital was found to be 1,024,383.33 shillings.
The findings of this study have revealed that daily operating capital incurred on purchasing meat to be sold on a daily basis plays a very big role on the performance of the butchery business in terms of profits earned by butcher men, since increase in operating capital causes an increase in the profits earned hence increasing performance
In order to enhance performance of the butchery businesses, butcher men must have more operating capital to inject in their businesses, so the Government should find ways on how to make it possible for these butcher men to get access to credit in simple procedures
According to the multiple linear regression model used, it indicated that the experience and age of the butchery operator showed an association with profits, however the p-values indicated that their association is statistically insignificant so research on performance of butchery businesses in relationship to experience and age of the business operator using other models is necessary.