microfinance services and the growth of small and medium enterprises: a case study of katwe small scale industries development association (kassida) in kampala central division kampala district

Description

The study was about micro-finance services and growth of small and medium enterprises in KASSIDA. Given the role played by Micro-finance Services in the growth of SMEs in Uganda, delivery of Micro-finance services remains poor, growth of SMEs have continued to decline for several factors like high interest rates on loans. The study was guided by four set objectives: To find out Micro- finance services used by Microfinance Institutions, To identify the rate of growth of Small and Medium enterprises in KASSIDA, To establish the relationship between Micro Finance services and the growth of SMEs , To find out the challenges faced by Small and Medium Enterprises in KASSIDA. Purpose of the study was to examine whether micro-finance services have a significant effect on the growth of SMEs in KASSIDA Organization. The methods in used in obtaining primary data included: self-administered questionnaire, interviews aided by interview guide, secondary data was also used and obtained through secondary data sources; Reports, Education journal, Text books among others. Descriptive data analysis was used to analyze data obtained from the field Major services provided by MFIs were micro-credit services (loan provision), savings among others. The services were highly accessible but service delivery by MFIs was poor. Small enterprises experienced high growth rate contrary to medium enterprises, micro-finance services contributed to growth of SMEs. There was a significant relationship between micro-finance services and growth of SMEs correlation results (0.551). MFIs provided mostly micro-credit services and savings, micro-finance services provided for the growth of SMEs, micro-finance services had a strong positive relationship with growth of SMEs. Improving and enhancing the effectiveness of service delivery by MFIs, need to promote balanced growth rate between Small and medium enterprises, enhance strong linkages between growth of SMEs and service delivery.