Management competencies, attitude towards accessing finance and performance of SMEs.

Abstract

The purpose of the study was to establish the relationship between Management competencies, Attitudes towards Accessing Finance and the Performance of SMEs in Masindi and Hoima districts. A sample size of 377 SMEs was used in the study. The research used a cross sectional research design. Primary data was collected using self administered questionnaires issued to the respondents and data analysis was done with the help of SPSS and with the use of Pearson’s correlation coefficient which was used to measure the strength and direction between Management Competencies, Attitudes towards Accessing Finance and Performance of SMEs in Masindi and Hoima district.

The study findings reveal a positive and significant relationship between Management Competencies, Attitudes towards Accessing Finance and Performance. Management Competencies and Attitudes towards Accessing Finance explain about 39.2% of the variance in Performance. This implies that the performance of SMEs is to some extent determined by management competencies and attitudes towards accessing finance. This survey recommends that, in the quest for solutions for better performance, other factors that have influence on performance should as well be considered.