Institutional Factors and performance of Small and Medium Enterprises (SMEs) in Uganda: A case of Leather Industries Uganda Ltd (LIU)

Abstract

This study examined institutional factors affecting performance of Small and Medium Enterprises (SMEs) in Uganda with particular focus on Leather Industries Uganda Ltd as a case. ‘Institutional Factors’ in this study was the independent variable, while ‘performance of SMEs’ the dependent The objectives of the study were: to establish the effect of entrepreneurial culture on performance of SMEs in Uganda; to assess the effect of human resource capacity on performance of SMEs in Uganda; to assess the effect of strategic planning practices on performance of SMEs in Uganda. This study was based on the Strategic Constituency Theory. The researcher adopted a cross sectional survey. Research findings established that entrepreneurial culture does not have a statistically significant relationship on performance of SMEs in Uganda. Research findings established that human resource capacity has a statistically significant relationship with performance of SMEs in Uganda. Research findings established that strategic planning practices has a statistically significant relationship with performance of SMEs in Uganda. The study found out that entrepreneurial culture does not have significant effect on performance of SMEs in Uganda. The study also notes that human resource capacity has a significant effect on performance of SMEs in Uganda. The study points out that strategic planning practices has a significant effect on performance of SMEs in Uganda. The study recommends that leaders in SMEs should relevantly orient their staff and other stakeholders on entrepreneurial culture, and proprietors in SMEs should invest in seeking advice on growing businesses based on values and principles