(Uganda Christian University, 2023-09-21) Vanessa Ttendo Bukenya
Financial distress in small and medium enterprises (SMEs) is a common phenomenon in the world today and thus attract the interests of we the scholars, government and policymakers. In corporate finance, the phrase "financial distress" is frequently used to describe any circumstance in which a person or business finds it difficult to meet their financial obligations, particularly loan payments to creditors. Small and medium-sized businesses in Uganda encounter a variety of obstacles that have an impact on their profitability and cause them to experience financial hardship. The SMEs are highly contributing to national economic development through enhancing entrepreneurship and creating employment for the youth. Consequently, SMEs increase invention and creativity, which in turn increases market competition (Jahur & Quadir, 2012). This research project seeks to find the causes of financial distress on MSEs which will enable them to avoid financial distress, curb its effects to ensure continuous and sustainable growth.