The impact of small and medium enterprises on the welfare of local communities

Abstract

The purpose of the study was to investigate the impact of small and medium enterprises on the welfare of local communities using a case of Lubya parish Lubaga division The investigation was guided by three research questions which include. To establish the role of small and medium enterprises towards the welfare of local communities, to examine the impact of small and medium enterprises towards the income of the people in the community and lastly to examine the challenges faced by the people in the community who run the SMEs all and medium enterprises. The methodology involved the use of descriptive research design employing the use of both qualitative and quantitative techniques. A total of 92 respondents were used to obtain the responses. Interviews and questioners both closed and open ended were used to ensure that the researcher obtains sufficient data. The data was analyzed using both qualitative and quantitatively to create relationships thus each technique was used interdependently. The findings revealed that small and medium enterprises played a role towards the welfare of local communities. SME’s enabled people to save some little income however most of it was utilized on education and household requirements and therefore littles was saved to eradicate poverty. In addition SMS’S where exposed to a wide range of challenges which stem from both social and economic outcomes such as increased taxes, poor infrastructure, capital as well as limited people who run the SME’s as well as infrastructural development. The researcher recommended that there was need for the government to support small and medium enterprises since the objectives of the government was to improve on the welfare of people through creating employment and eradicating poverty. The researcher recommended that further research should be conducted to explore the social economic welfare of people in rural areas