Factors affecting capital accessibility by small and medium scale enterprises: a case study of Kabale municipality-central division.

Abstract

The general objective of this study was to find out the factors that affect capital accessibility by SMEs in central division, Kabale Municipality. The study was based on a sample of 78 businesses that were selected using systematic sampling technique. For the data collection, a personally administered structured questionnaire was used to conduct face to face interviews with the owners of the businesses. In the analysis, descriptive statistics, pair wise correlation, and a multiple linear regression model were employed to establish the factors that affected capital accessibility by SMEs. It was established that there was no significant relationship between capital accessibility and all the suggested factors that is age, educational level, gender and type of commodities dealt in. Since the findings indicated that age of SMEs owners, education levels, gender and type of commodities dealt in do not affect capital accessibility, every individual, whether young or old are encouraged to work hard so as to obtain capital for business establishment, different people that with or with no education can start a business and it becomes successful, both men and women are encouraged to participate in establishment of SMEs and people are encouraged to develop different ideas whether consumer or capital goods , they would all be successful when invested in correctly. More studies should also be carried out using better and more representative samples, better modes of data collection and analysis as well as more factors affecting capital accessibility especially those that were not included in the model