Resource availability, allocation, utilization and the performance of small and medium scale enterprises (smes): A case study of Kampala-Nakawa division, Uganda

Abstract

The purpose of this study was to examine the effect of Resource Availability, Allocation, Utilization and Performance of SMEs in Kampala-Nakawa division. The study was prompted by the high rate of business collapse in Kampala especially in Nakawa division. The study used descriptive correlation cross-sectional survey design with both qualitative and quantitative methods of data collection employed. The accessible population of 526 respondents was identified from which a sample size of 227 respondents was obtained using Yamane (1967:886) formula. A response rate obtained was 79.3%. Key findings indicated that resource availability and SMEs performance were positively related (.334**), a positive relationship (.418**) was obtained between allocation of resources and Performance of SMEs and utilization of resources was found to have a positive relationship (.692**) with performance of SMEs. In conclusion, the researcher observed that for SMEs to perform and thrive in business, resource availability, allocation, and utilization were significant predictors of performance of SMEs. The study recommended that other than the factors studied in the model, further studies be done on different factors that may influence performance of SMEs in Nakawa, other divisions of Kampala and the country at large.