Anmerkungen:
Nach Informationen von SSRN wurde die ursprüngliche Fassung des Dokuments September 9, 2018 erstellt
Beschreibung:
the main objective of this study was to examine the impacts of lending terms on the financial performance of MSMEs. The study ascertained the complexities (challenges) associated with operating MSMEs in Uganda and also examined the impact of lending terms on the performance of MSMEs. A cross-sectional survey design was used because of limited resources in terms of time and finance. The researcher used descriptive, qualitative, and quantitative approaches. Fisher’s method of sampling was therefore used, thus obtaining a sample of 100. A simple regression model was used for analysis because it is easier to adjust independent variables as it allows to explicitly control many other factors that could simultaneously affect the independent variable. The study results revealed that the main challenge associated with operating MSMEs in Uganda is limited access to credit. Other challenges include; inappropriate sources of finance, too much competition, taxes, insufficient capital, and lack of planning. Furthermore, the regression results showed a statistically significant negative relationship at a 5% level of significance between the level of education of the person operating MSMEs and its performance (monthly profits). However, variables such as age, gender, marital status, collateral security, payment period, interest rate, and guarantee didn’t have a significant relationship at a 5% level of significance with the performance (monthly profits) of MSMEs in this study. MSMEs over the years have assumed greater significance in our burgeoning national economy by contributing to employment generation and rural industrialization. This sector possesses enough potential and possibilities to pushbutton accelerated industrial growth in our developing economy and well poised to support national programs like ‘Buy Uganda Build Uganda’ (BUBU), a trade promotional campaign drive under the ministry of trade and cooperatives. The study, therefore, recommends that the government of the Republic of Uganda and banks should design policies in alignment to help start-ups. Especially, cash flow should be provided based on the qualification not on collaterals or bank guarantees