Managerial competencies, access to credit and business success

Abstract

The purpose of the study was to investigate the relationship between Managerial Competencies, Access to credit and Business success of selected SMEs in Kampala. The research was guided by three objectives; to establish the relationship between managerial competencies and business success, to investigate the relationship between credit accessibility and business success and to examine the relationship between managerial competencies, access to credit and success of selected SMEs’. The research followed a cross sectional design. Primary data was collected using self administered questionnaires issued to the respondents. Data was collected and analyzed using a sample size of 381 SMEs randomly selected from a population of 45,832 SMEs. Data analysis was done with help of SPSS and with the use of pearson’s correlation coefficient which was used to measure the strength and direction between managerial competencies, access to credit and business success. The findings disclose a positive and significant relationship between managerial competencies, credit accessibility and business success. Managerial competencies and access to credit explain about 27.7% of the variance in business success. This implies that in order to achieve business success SMEs should improve managerial competencies and put in place better mechanisms for accessing credit. This survey recommends that in the quest for solutions for the business success, other factors should also be emphasized that have an effect on firm performance.