• Login
    View Item 
    •   Mak IR Home
    • College of Business and Management Sciences (CoBAMS)
    • School of Economics (SE)
    • School of Economics (SE) Collections
    • View Item
    •   Mak IR Home
    • College of Business and Management Sciences (CoBAMS)
    • School of Economics (SE)
    • School of Economics (SE) Collections
    • View Item
    JavaScript is disabled for your browser. Some features of this site may not work without it.

    The analysis of effectiveness of bank credit as a funding alternative for SMEs in Kampala

    Thumbnail
    View/Open
    Masters Thesis (1.183Mb)
    Date
    2018-01-04
    Author
    Bindeeba, Elizabeth
    Metadata
    Show full item record
    Abstract
    This research project was carried out to analyze the effectiveness of bank credit as a funding alternative for SMEs in Kampala district. The study set out to establish the current status of access to bank credit by SMEs in Kampala district, evaluate the factors affecting access to bank credit among SMEs in Kampala district and to design strategic frameworks that can ease bank credit access by SMEs. The study applied both qualitative and quantitative techniques to obtain and analyze the data that was collected for the study. A total of 384 unique SMEs were selected using a combination of quota sampling and random route based sampling. The findings of the study have been summarized and presented as percentages, descriptive statistics and absolute figures in a bid to explain the findings and answer the research questions that had been put forward during the study. The main findings of the study were that less than half of the businesses needed credit and of those that sought bank credit, less than half were able to obtain it citing access and eligibility issues. The study also found out that 64% of the SMEs that obtained bank credit experienced growth in turnover showing that bank credit was important for SMEs growth. The study further established that the entrepreneurs did not see collateral as a major hindrance to accessing credit and neither did they consider their businesses unfit to access credit by virtue of business volatility nor formal status. However, the main hindrances to accessing credit resulted from a general perception by entrepreneurs that using their own savings was always better than accessing credit hence the observed moderate levels of aspiration to borrow. The study concludes that bank credit is needed for the growth of the SMEs and further recommends that for the credit to be effective, there’s need for financial literacy regarding financial discipline when it comes to maintaining pre-determined purpose of borrowed funds and the opportunity cost of investment as SMEs wait to accumulate own funds as opposed to obtaining bank credit.
    URI
    http://hdl.handle.net/10570/7065
    Collections
    • School of Economics (SE) Collections

    DSpace 5.8 copyright © Makerere University 
    Contact Us | Send Feedback
    Theme by 
    Atmire NV
     

     

    Browse

    All of Mak IRCommunities & CollectionsTitlesAuthorsBy AdvisorBy Issue DateSubjectsBy TypeThis CollectionTitlesAuthorsBy AdvisorBy Issue DateSubjectsBy Type

    My Account

    LoginRegister

    Statistics

    Most Popular ItemsStatistics by CountryMost Popular Authors

    DSpace 5.8 copyright © Makerere University 
    Contact Us | Send Feedback
    Theme by 
    Atmire NV