Factors Affecting the Performance of Small Enterprises in Uganda. A case of Bushenyi District

Abstract

The study examined the factors affecting the performance of small enterprises in Uganda with a case study of Bushenyi District. The study specifically examined the effect of microfinance institutions’ practices, government support, and organizational management practices on the performance of small enterprises. Using a cross-sectional design, data was collected from a sample of 127 respondents in Bushenyi using self administered questionnaires and interviews. The findings of the study indicate a positive significant relationship between microfinance institutions’ practices and performance of small enterprises. The study also found a positive significant relationship between government support and the performance of small enterprises. A positive significant relationship was found between organizational management practices on the performance of small enterprises. The study concluded that Microfinance institutions’ practices positively affect the performance of small enterprises. The study also concluded that there is a positive relationship between government support and the performance of small enterprises. The study further concluded that organizational management significantly contributes to the performance of small enterprises. The study recommended that microfinance institutions should improve on their practices, the government should improve on service delivery with better policies and there should be better organizational management in order to improve the performance of small enterprises. Overall, the study strongly recommended more emphasis should be put on organisational management since it was found out to be the most influential if the three.