Browsing by Author "Joseph Kiyingi"

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    Mobile microcredit uptake and financial performance of SMEs: a case study of Mukono central division
    (Uganda Christian university, 2026-05-06) Joseph Kiyingi
    The study looked at the adoption and use of mobile microfinance services as well as financial performance of SMEs in Mukono Central Division, Uganda. The aim of this study was to ascertain the impact that adoption and use of mobile microcredit services have on the financial performance of SMEs. The study sought to find out whether there is a link between mobile microcredit adoption and profitability of SMEs, what the impact of access and repayment of mobile microcredits in time has on financial performance, and how mobile microcredit use affects financial performance of SMEs. The research was conducted using a descriptive research method where a quantitative research approach was applied. The total number of respondents in the target population was 100 SMEs that operate in the Mukono central division such as retail shops, hardware shops, grocery shops, and general merchandise businesses. The sample size of the study involved 80 respondents who were determined using Krejcie and Morgan's (1970) sample size table. Data collection methods involved use ofquestionnaires while SPSS was used to analyze the data collected. It was found that mobile microcredit has a strong effect on the profit levels of SMEs in Mukono Central Division. It has been seen that mobile microcredit makes working capital available for SMEs, manages their cash flows, and helps in the growth of businesses. It has been found that the availability of mobile microcredit in time makes a great contribution to the performance of SMEs in terms of finances. However, delay in repayment may lead to certain penalties and lack of access to credit facilities in the future. Also, it has been found that proper use of mobile microcredit by the SMEs is a key contributor to better performance levels of SMEs. In conclusion, the mobile microcredit system plays a vital role in enhancing the financial performance of SMEs through improved liquidity, convenience, and ease of acquiring credits for business purposes. Recommendations of the study include the use of mobile microcredit by SME owners for productive activities and practicing good repayment discipline for continued financial services access. Another recommendation includes the need for mobile credit lenders to improve financial education and knowledge among SME owners for better management of their finances and credits.