Browsing by Author "Margret Namuli"

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    The Effect of Microfinance Credit Terms on the Performance of Small-Scale Enterprises in Mukono District
    (Uganda Christian University, 2023-09-07) Margret Namuli
    The study sought to investigate the effect of microfinance credit terms on the performance of small scale enterprises in Ddandira village, Namumira-Anthony Parish, Mukono district. The study was guided by three objectives: establishing the relationship between interest rates and the performance of small scale enterprises, examining the relationship between collateral security and the performance of small scale enterprises and determining the relationship between repayment period and the performance of small scale enterprises in Ddandira village, Mukono. The study was carried out using cross-sectional research design where quantitative research approach was utilized. Stratified sampling method was used to get a sample of 50 respondents who were SME owners and managers of the selected businesses dealing in businesses in Ddandira village, Namumira-Anthony Parish, Mukono district and these responded to the questionnaires that were used to collect data. From the study findings, it was revealed that a substantial negative relationship between high interest rates and SSE performance, emphasizing the detrimental impact of such rates on these businesses, and the need for more favorable lending conditions to support their growth. Secondly, the positive relationship between flexible collateral security and SSE performance underscores the importance of accommodating collateral options in facilitating access to credit, thereby enhancing the overall performance of SSEs. Lastly, the study demonstrates a significant positive correlation between longer loan repayment periods and SSE performance, emphasizing the critical role of loan term flexibility in enabling strategic decision-making and sustainable growth for these enterprises. These findings collectively underscore the significance of tailored financial arrangements and policies in fostering the success and stability of SSEs in Ddandira. Finally, the study recommended that policymakers and microfinance institutions focus on interest rate reforms and collateral flexibility to enhance the performance of Small and Medium-Sized Enterprises (SSEs). It suggests offering customized loan repayment terms, providing financial literacy programs, and supporting SSE growth and innovation through lower interest rates. Regular monitoring, evaluation, and policy advocacy efforts are also essential for optimizing SSE financial health and access to credit.