Bachelor of Business Administration - Main Campus

Permanent URI for this collection

https://scholar.ucu.ac.ug/handle/20.500.12311/78

Browse

Recent Submissions

Now showing 1 - 20 of 380
  • No Thumbnail Available
    Item
    The impact of digital currencies on traditional banking systems, evidence from lira district
    (Uganda Christian University, 2026-05-18) Toli Larry Andrew
    The emergence of numeral coins including cryptocurrencies apart from numerical coins issued by the central banks, has brought about some form of change in the monetary environment. The paper analyzes the complicated impact of digital currency on conventional financial systems while considering the opportunities and challenges. The paper starts by examining the history behind the development of numeral coins with focus being placed on its technological foundations as well as the dynamic role of adoption. While analyzing the advantages of numerals coin to the financial industry, it includes increased financial inclusion, efficient and cheaper cross-border transactions, and better transparency courtesy of the mass data analytics. On the downside, this paper critically analyzes the difficulties experienced by conventional financing institutions as a result of the introduction of numeral coins. This includes the disintermediation issue, operational risks, and potential machine malfunctions vis-à-vis monetary policies. In essence, the focus of the paper is on the dynamics of the numeral coin revolution and its context within the need for stability, security, and healthy competition. The analysis undertaken is balanced since it considers actual occurrences in different nations as well as some financial institutions. Insights gained from interactions with the manufacturers, strategists, and experts on investments help contribute to knowledge on how the interaction between the two takes place. Furthermore, future considerations on how the relationship between digital currencies and the investment market will develop are included in the syllabus of this course. Both the relationship and interaction of both currencies are studied, including the evolution of lending platforms because of the disruptive nature of the digital currency. Overall, it is intended that this paper contributes to findings to help generate a reliable analysis of the effects of digital currencies on traditional investments. This topic falls under the larger question of how to deal with investment in the age of digital currency.
  • No Thumbnail Available
    Item
    The influence of social media on fashion among the youth in the fashion industry case study of Uganda Christian university students
    (Uganda Christian University, 2026-05-18) Lydia Obuni Mociruku
    Social media has disrupted how people consume fashion all over the world. Sites like Tiktok, Instagram, and WhatsApp are platforms where consumers seek fashion inspiration, learn about trends and purchase products endorsed by influencers. This pattern is common across Generation Z worldwide. Social media platforms impact fashion consumption patterns in Uganda through increased mobile internet penetration and the country’s youthful demographics. Research on how social media affects fashion consumption among youths in East Africa is scant. Available literature focuses on the West and Asia. The aim of the study was to explore how social media influences fashion among undergraduate students of Uganda Christian University (UCU). Objectives were to establish what platforms students used and how often they used them to follow fashion. Secondly, the study sought to determine the correlation between social media following and students’ style preference. Finally, the research investigated how purchases are influenced by social media influencers compared to fellow students. Methodology: The study used a cross-sectional descriptive design and was approached with mixed methods. Ninety undergraduate students of Uganda Christian University (UCU) participated in the study. Data was collected using a structured self-administered questionnaire given out physically and through electronic means. Quantitative data were analyzed through Statistical Package for Social Sciences (SPSS) Version 27, utilizing descriptive statistics, Pearson correlation, and dependent t-test. Tiktok (25.6%) and WhatsApp (23.3%) were the two most used platforms. Social media following correlated positively but insignificantly with student’s style preference (r = 0.174, p =.101). Students’ fashion purchases were significantly influenced by influencers than fellow students(M=3.08 vs M=2.31; t(89) =8.31, p < .001). In conclusion, based on the findings, social media conditionally influences UCU students’ fashion behavior. Although students use social media platforms to follow fashion trends, there was no significant influence of social media following on their style preference. This can be attributed to conditioned factors unique to UCU inhibiting social media from having full behavioral authority. This includes institutional rules, cultural practices, and students’ financial capabilities. Students’ social proof weighed less when compared to influencers. Keywords: Social media, fashion consumption, influencer marketing, Generation Z
  • No Thumbnail Available
    Item
    Credit risk management and financial performance of commercial banks: a case study of Stanbic Bank
    (Uganda Christian University, 2026-05-15) Ian Ampulire
    The purpose of this research is to investigate how credit risk management affects the financial performance of Stanbic Bank. The following were the Specific Objectives of the study: To investigate the effect of Credit monitoring, Credit Risk assessment and Credit Risk policy on the financial performance of Stanbic bank. A descriptive cross sectional research design was used where both qualitative and quantitative research approaches were employed in data collection. 59 respondents were sampled for the study where data was collected through questionnaires. Quantitative data was analyzed using measures of central tendency while qualitative data was analyzed using correlation and regression analyses. A high positive significant relationship was found between credit monitoring and financial performance. Also, a high positive significant relationship was found between credit risk assessment and financial performance. Lastly, a high positive significant relationship was found between credit policy and financial performance It is found out that credit monitoring, credit assessment and credit policy have strong and statistically significant positive impact on financial performance of the bank. The study concludes that efficient management of credit risks using proper credit risk monitoring, assessment and policies in the institution can result to significant positive effect on the financial performance of the bank and vice versa. It is suggested that in order to attain the required revenue from sales and profit, the financial institutions should adopt the following philosophy: continuously identify the sources of credit risk and classify them to assist in conducting credit risk assessment; continually conduct the analysis of available credit risk information and use responsive credit risk estimation techniques/models in the industry and finally strengthen the credit mitigation and monitoring strategy through proper training and allocations of necessary resources for credit recovery.
  • No Thumbnail Available
    Item
    The impact of bank charges on financial behavior of individuals in Uganda Christian University Mukono
    (Uganda Christian University, 2026-05-09) Neville Mwesigwa Rukuba
    This study examines the impact of bank charges on the financial behavior of individuals at Uganda Christian University (UCU), Mukono. Using a descriptive cross-sectional research design, the study sampled 50 participants, including students and staff, to understand how fees like ATM withdrawals, account maintenance, and transaction costs influence their money management. The findings reveal that high and often unpredictable bank charges significantly alter financial habits. Descriptive and inferential analysis showed a strong negative correlation (r = -0.684, p < 0.01) between charges and saving habits, as monthly fees and ledger deductions act as a major deterrent to maintaining formal bank balances. Consequently, many individuals are pushed toward less secure informal saving methods like cash or mobile wallets. Furthermore, the study identified a significant relationship between bank charges and conservative borrowing and spending patterns (r = 0.742, p < 0.01). To avoid repeated fees, 40% of respondents reduced their transaction frequency, and 22.5% resorted to risky bulk cash withdrawals. High processing fees also discouraged formal borrowing among both students and professionals. Overall, bank charges accounted for 51.1% of the variation in financial behavior within the university community. The study concludes that current fee structures hinder financial inclusion and recommends that banks introduce student-specific "zero-fee" accounts and improve transparency in fee disclosure to foster better financial engagement.
  • No Thumbnail Available
    Item
    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.
  • No Thumbnail Available
    Item
    Online banking and financial performance of commercial banks: a case study of Bank of Africa Mukono
    (Uganda Christian University, 2026-05-06) Jeninah Asasira
    The study examined online banking and financial performance of commercial banks using a case study of bank of Africa Mukono. It specifically focused on; showed the relationship between ATM banking and financial performance in Bank of Africa, analyzed the relationship between internet banking and financial performance of Bank of Africa, and analyzed the relationship between mobile banking and the financial performance of Bank of Africa.The study was carried out using a cross sectional research design where quantitative research approach was also used. The data was collected using questionnaires and interviews and during data collection, simple random sampling method was used. A sample size of 40 respondents who are employees of Bank of Africa was also used in the study. The study findings established that ATM banking, internet banking, and mobile banking significantly enhance financial performance at Bank of Africa–Mukono branch. ATM banking showed a positive relationship with financial performance (r = .645**, p < .01) and a positive regression influence (β = 0.225, t = 3.693, p = 0.000). Internet banking demonstrated the strongest relationship (r = .782**, p < .01) and a positive regression effect (β = 0.243, t = 3.668,p = 0.000). There was a strong relationship between mobile banking and dependent variables (r =.639, p < .01) as well as a considerable regression effect (β = 0.396, t = 5.426, p = 0.000), which suggests that proper use and implementation of the services offered by online banking lead to improvement in terms of accessibility, efficiency, customer satisfaction, and profitability of the bank. Finally, the paper suggested to Bank of Africa-Mukono that it should further develop its ATM, internet, and mobile banking services in addition to raising digital literacy among employees andcustomers by integrating new digital technologies.
  • No Thumbnail Available
    Item
    The effect of microfinance credit terms on the financial performance of small scale enterprises in Mukono municipality
    (Uganda Christian University, 2026-05-06) Barbara Natasha
    The study looked at how microfinance credit terms affected Mukono Municipality's small businesses' financial performance. It particularly concentrated on establishing the connection between interest rates and small businesses' financial performance, figuring out the connection between collateral requirements and small businesses' financial performance, and investigating the connection between repayment terms and small businesses' financial performance in Mukono Municipality. A cross-sectional correlational research strategy was employed in the study, along with a quantitative research approach. Questionnaires were utilized to gather the data, and stratified sampling was employed throughout the process. Although 320 of the owners of the chosen small businesses in Mukono Municipality replied to the study, a sample size of 384 respondents was used. The results of the study showed that the financial performance of small businesses in Mukono Municipality is highly influenced by the terms of microfinance lending. The level of interest, requirement for collateral, and period of repayment have an influence on enterprise performance, such that the higher the interest rate, the stricter the collateral requirement, and the stiffer the period of repayment, the lower the profitability of the business. The correlation analysis revealed significant positive correlations between financial performance and interest rate (r = .723**, p < .05), collateral requirement (r = .677**, p < .05), and repayment period (r = .615**, p < .05). In conclusion, it was established that the terms of microfinance credit such as interest rates, requirements for collateral, and repayment periods significantly influence the financial performance of small scale enterprises in Mukono Municipality. Inappropriate terms make the operations of businesses less profitable and financially unsustainable, whereas flexible terms promote better financial performance.Finally, it was recommended that in order to improve the financial performance of small scale enterprises, the interest rate policies of microfinance institutions should be flexible and consistent. Additionally, collateral requirements need to be flexible and repayments should be done based on the cash flows of businesses.ix
  • No Thumbnail Available
    Item
    The influence of corporate governance on the quality of financial reporting :a case study of Lira city East Division, Lira City
    (Uganda Christian Christian, 2026-04-22) Jane Patience Ejang
    This paper seeks to examine the impact of corporate governance on financial reporting quality among selected organizations in Lira City East, Northern Uganda. The main motivation behind this research is the consistent problems in financial reporting despite existing corporate governance measures in organizations. This study mainly concentrated on the effect of corporate governance components, which include the audit committee, board of directors, and internal control systems, on financial reporting quality. A descriptive and correlational research design was used, applying both qualitative and quantitative approaches to gather data. Questionnaires and interviews were administered to a randomly selected 50 respondents in five firms within the selected region. While qualitative data was analyzed using content analysis technique, quantitative data were analyzed through regression analysis. The results have shown a positive correlation between corporate governance and financial reporting quality. This indicates that the board of directors, audit committee, and internal control systems have enhanced transparency, accuracy, and efficiency in financial reports. Regression analysis further proved that there exists a statistically significant effect of corporate governance elements on financial reporting quality. This study suggests the need for effective governance measures, which will promote quality financial reporting in organizations.
  • No Thumbnail Available
    Item
    The impact of enforcement mechanisms on trading license compliance among small businesses in Kiko market, Mukono municipality
    (Uganda Christian University, 2026-04-22) Solomon Mubiru
    This study examined the impact of enforcement mechanisms on trading license compliance among small businesses in Kiko market, Mukono municipality. The study was guided by three objectives that is, to assess the effect of inspection exercises, penalties and fines, and public sensitization on compliance among small businesses in kiko market, Mukono Municipality. A descriptive research design using both quantitative and qualitative approaches was employed. Data was collected from 97 respondents using stratified random and purposive sampling methods, using questionnaires and interviews, and analyzed using descriptive statistics. The findings revealed that inspection exercises are irregular and ineffective, penalties and fines are poorly communicated, and public sensitization is inadequate though highly important. In addition, the research shows that compliance levels are generally low due to expensive licenses, lack of awareness, and inefficiencies in the process. The research concludes that enforcement measures will not be enough to ensure compliance if they are not backed by transparency, justice, and consistent sensitization. The research makes several recommendations such as improving the consistency of inspections, changing the penalty system, increasing awareness campaigns, and making licensing easier for small businesses.
  • No Thumbnail Available
    Item
    Business risks management and financial performance: a case of selected Small Medium Enterprises in Adjumani town council, Adjumani district-northern-uganda
    (Uganda Christian University, 2026-04-22) Winnie Mazira
    This research was card out to analyze the relationship between Business Risks management and the Financial Performance of the Small Medial Enterprises in Adjumani Town Council, Adjumani District –northern Uganda. The specific objectives of the study were; “to assess the effects of Financial Risks management on the financial performance”, “to Examine the effects of Human Risks management on the financial performance” and “to analyze the effects of Independent Risks management on the financial performance” of SMEs in Adjumani Town Council-Adjumani District respectively. The investigation was focused on the effects of Finance risks, human risks and independent risks managements on the Financial Performance of the selected SMEs with the view of strengthening their Business Risks Management (BRM) capacities for enhancing their Financial Performance. A Quantitative design was adopted to enable convenient data access and numerical analysis of finial performance. Open ended questionnaires with rated score scales were used to extract data from 72 respondents (sole SMEs and group partnership SMEs with their employees). The field data were subjected to Statistics for Social Sciences, analysis and interpretation of table and figures generated reveals that; Business risk and financial performance are mischievous. Major business risks are; financial risk (cash loss or insolvency), human risk (employee errors or mistakes) and independent risks (unexpected damages or disasters). Financial risk is the most critical business risk challenging the financial performance of SMEs especially sole SMEs are at higher risk than group partnership SMEs. Knowledge of risk control strategies does not improve financial performance of SMEs unless they become personal habit (culture) of business employees as major expositors to risk factors. The effective mitigation of business risk should begin from limiting human risks projected beyond qualification or just good records but rather a habit of consistent value of resources (capital goods or assets) and self-experience in financial discipline. The challenges of independent risks are high for SMEs due to defective risk monitoring system of most SMEs and only effective engagement can bail out the financialperformance SMEs.
  • No Thumbnail Available
    Item
    Impacts of effective physical distribution on profitability of the organization
    (Uganda Christian University, 2026-04-22) Racheal Ajilong
    This study evaluated the “Impact of Effective Physical Distribution on Organizational Profitability, with Specific Reference to Abrah Shopping Center in Mbale District”. The purpose of the study was examined in depth how physical distribution practices influenced profitability and overall retail performance. The study was framed by three objectives: To examine the importance of physical distribution to organizational profitability and consumer satisfaction, to examine the influence of economic conditions on sales through physical distribution, and to examine transportation cost challenges affecting distribution efficiency. A descriptive research design was used. Data was collected from a sample of staff and customers using structured questionnaires, interviews, observation, and document review, and analyzed using descriptive statistics and thematic analysis. The findings highlighted that effective physical distribution significantly enhanced product availability, reduces stock-outs, and minimizes losses through proper warehousing, improving customer satisfaction and operational efficiency. subsequently the study established that logistics planning and procurement strategies positively influence sales performance, although varying levels of awareness exist among employees regarding the strategic importance of distribution planning in achieving long-term profitability. Besides, transportation-related challenges particularly high fuel costs, poor road infrastructure, and frequent vehicle breakdowns were identified as major constraints limiting distribution efficiency and increasing operational costs. Overall the study shows that physical distribution is a critical determinant of retail performance and profitability nonetheless, its full potential is constrained by infrastructural limitations and gaps in managerial and employee understanding. In light of the findings on these findings, the study recommends that management should invest in improved warehousing systems, adopt integrated and strategic logistics planning, strengthen procurement and supplier coordination, and implement effective transportation cost management practices. Furthermore, the adoption of digital technologies and continuous staff training is essential to enhance efficiency, decision-making, and long-term organizational competitiveness.
  • No Thumbnail Available
    Item
    Cash management practices and profitabiity of Small and Medium Enterprises in Mukono Central Division
    (Uganda Christian University, 2026-05-05) Rinah Ninsiima
    The study examined the relationship between cash management practices and the standard deviation, correlation, and regression analysis. A cross-sectional approach was employed for data collection from the SMEs in one profitability of small and medium enterprises (SMEs) in Mukono Central Division. The period of time. The target population was 300 registered small-scale businesses within management on SME profitability.involving descriptive and inferential statistics like frequencies, percentages, mean, budgets can effectively plan their finances, manage their expenses, and improve their financial performance. It was also evident that efficient cash collections are critical in with SME profitability. Firms engaging in regular preparation and analysis of cash improving firm liquidity and profitability, since they enable firms to recover their shops,and general goods shops. By consulting the Krejcie and Morgan (1970) sample size table, a sample size of 169 subjects was obtained. Stratified random sampling was practices on SME profitability, and to evaluate the influence of cash disbursement From the results obtained, it was evident that cash budgeting is positively correlated study was guided by three specific objectives: to examine the effect of cash budgeting the Mukono Central division, which included retail shops, hardware shops, grocery receivables on time and prevent bad debts. Moreover, it emerged from the study that good practices in cash disbursements enhance profitability through appropriate management is very important in boosting profitability and the overall financial carried out to make sure that all types of SMEs would be represented equally in the scheduling of disbursements and cost savings.The study showed that good cash research. Data collection involved the use of structured questionnaires and relied on practices on the profitability of SMEs, to assess the influence of cash collection both primary and secondary data. The SPSS software was applied for data analysis stability of the SMEs operating in the Mukono Central division.
  • No Thumbnail Available
    Item
    The effect of viral TikTok trends on impulse buying decisions in the fashion industry among university students in Uganda: a case study of Uganda Christian University students
    (Uganda Christian University, 2026-05-05) John Mawejje
    This paper will look into how viral Tik Tok trends can affect the impulse buying behavior of fashion industry among undergraduate students within Uganda Christian University (UCU). Although the use of Tik Tok has been rising at an alarming pace in Uganda, which adds to the unplanned expenditure of young people with low disposable income, the literature gap about the effects of Tik Tok viral mechanisms on impulse purchasing in the non-Western society is still present. Three particular objectives guide the research, such as to identify the impact of exposure to viral TikTok fashion trends, to assess the impact of the credibility of TikTok influencers on unplanned purchases, and the correlation between active interest involvement with viral content (likes, shares, comments) and impulse buying behavior. The designated study has a quantitative, cross-sectional survey design, which is premised on the Stimulus-Organism-response (S-O-R) theory. Stratified random sampling will be used to select a sample of 367 undergraduate students out of a target on about 8,000 students. The use of descriptive statistics, Pearson correlation, and multiple regression will be used in analyzing primary data that will be gathered through the administration of self-administered structured questionnaires to respondents. Finally, the research will also have theoretical contributions to platform specific consumer behavior on the one hand and practical implications to marketers on how to create responsible campaigns and university administrators and policymakers on how to resolve the financial vulnerability of students by using specific financial literacy programs.
  • No Thumbnail Available
    Item
    Credit accessibility and financial performance of SMEs in Eastern division of Busia municipality
    (Uganda Christian University, 2026-05-05) Morine Nekesa
    The primary aim of the study was to determine the effect of access to credit on the financial performance of the small and medium enterprises operating in the Eastern Division of Busia. These factors included access to credit, conditions for credit and the interest rate involved. These variables are correlated with financial performance measures such as profitability, return on investment and assets, sales, and job creation capabilities. This research adopted the cross-sectional survey approach where surveys were done using questionnaires and interview guides. Questionnaires were used to collect information from 62 business owners/managers (of the targeted 70 businesses), whereas interviews were held with 12 loan officers from banks, micro finance companies and SACCOs. The results from correlation showed positive relationships between performance and availability of credit (r=0.445), credit terms (r=0.512 – highest correlation) and interest rate (r=0.468). Regression analysis shows that the three credit factors explained 37.5% of variation in performance, with credit terms being the most significant variable (β=0.348). In conclusion, credit availability does influence the performance of the SMEs in the border region; however, it is important to focus more on credit terms than mere presence of banks. This could be achieved by banks using different types of currency for lending, accepting movable securities like equities and machinery, allowing for longer grace period and being clear on the cost of credit. It is important for the government to start a credit guarantee scheme and help Kenya facilitate cross-border credit facilities. For the SMEs, it would be advisable to keep proper accounting records, legalize their businesses and learn about credit terms before borrowing.
  • No Thumbnail Available
    Item
    Determinants of household saving behaviour among Ugandan Adults
    (Uganda Christian University, 2026-05-04) Victoria Nabulya
    In this study, the variables affecting household savings behaviour of adults in Uganda were analyzed using the findings of the nationally representative Fin Scope Uganda 2023 survey. Saving is critical in enhancing financial stability in a household and ensuring smooth consumption in the present and saving for the future such as education costs, health care, and emergencies. Despite efforts by the government to promote financial inclusion through the provision of financial services and mobile money services, there are still instances of inconsistent saving behaviours among households in Uganda. This study employed a quantitative cross-sectional research approach, using secondary data that were drawn from 3,176 adult respondents in the entire country. The data collected on the respondents' demographics, saving habits, and other independent variables were described using descriptive statistics. The binary logistic regression analysis was employed to determine the impact of the above mentioned independent variables on savings. The results indicate that while saving is widely practiced by adult Ugandans, it occurs informally through means like Village Savings and Loans Associations (VSLAs), mobile money wallets, SACCOS, and savings at home and not formally through commercial banks. It was determined that socio-demographic characteristics had the greatest predictive power for savings behaviour. Women, younger people, and those from rural areas had a greater likelihood of saving when compared to men, elderly individuals, and people from urban areas. However, income stability was not found to affect savings significantly, which means that even people with fluctuating income streams are capable of saving using informal methods. However, surprisingly, increased levels of financial literacy were related to decreased levels of saving. It is found that the behaviour of savings within households in Uganda is mainly driven by the socio-demographic and situational aspects of households rather than income stability or financial literacy. In view of the above results, it is suggested that more emphasis should be placed on promoting community-based savings groups, providing relevant practical education, and designing saving products suitable for low and unstable income households.
  • No Thumbnail Available
    Item
    The effectiveness of financial risk management on loan performance of small-scale enterprises: a case study chigook microfinance; South Sudan
    (Uganda Christian University, 2026-04-28) Robert Labi Kenyi Kiri
    This study assessed the effect of financial risk management on the performance of loans t small-scale enterprises by Chigook Microfinance in South Sudan. This study was inspired by the rising number of loan defaults and irregular repayment ratios that are prevalent among borrowers, questioning the efficiency of the risk management strategies implemented by microfinance institutions. This study applied a descriptive cross-sectional research design that involved the use of both quantitative and qualitative methods of data collection. Data were gathered from a sample population of 100 respondents comprising of small-scale enterprise borrowers, loan officers, and risk management personnel. Seventy-eight valid responses were received through the use of structured questionnaires and interviews. From the findings, it was observed that there are well-developed risk management practices within the microfinance institution especially in terms of credit assessment, loan monitoring, management of collaterals, and liquidity management. Majority of the participants agreed that there is an evaluation of the ability to pay back, examination of the accounting records, and consideration of the credit history before lending any money. However, there have been some shortcomings especially in assessing the value of the collaterals and delayed lending process due to liquidity problems. As far as the performance of the loans is concerned, it was observed that 77% of the borrowers pay back the money on time while 26% have once defaulted. The correlation coefficient shows a reasonably strong positive relationship between financial risk management practices and loan performance. This research has proven that good financial risk management practices play an important role in determining how well loans perform within microfinance organizations. This includes improving credit appraisal practices, better liquidity management, and efficient operations through proper staff training and technology use. All these steps are necessary to reduce loan losses and ensure the sustainability of microfinance organizations, especially during economic instability periods like those experienced in South Sudan.
  • No Thumbnail Available
    Item
    The effects of credit terms on financial performance of small and medium enterprises in Mukono Central Division
    (Uganda Christian University, 2026-04-22) Josephine Bakhita
    This research thus looked at the influence of credit terms on the financial performance of SMEs in Mukono central division with three aims; to test the influence of interest rates on financial performance of SMEs in Mukano central division, to test the influence of payment period financial performance of SMEs in Mukano central division and finally to test the influence of late payment penalties financial performance of SMEs in Mukano central division. The research design was quantitative and a cross-sectional survey. Structured questionnaires were used to collect data on 180 SMES owners and managers (80 percent response rate) in retail, wholesale, manufacturing and service sectors. Analysis of descriptive statistics was done using SPSS. Stratified random sampling was used to select the respondents. The results indicated that there was a huge agreement that high interest rates impacted adversely on financial performance (overall mean = 4.42/5.00). More than 94 percent of the people interviewed said that high rates deter expansion investment and 93 percent said that the prevailing rates of about 23 percent are excessive. In relation to repayment periods, 94.5 percent reported that they would be able to grow as they would have longer repayment periods, and short periods (12-24 months) cause cash flow problems and require them to focus on repayment, rather than growth. Regarding high penalties as a way of dealing with late payments, more than 91 percent responded that high penalties are part of debt and stagnation cycles, exacerbate cash flow in the slow sales period, and decrease the amount of funds available to reinvest. The study finds that high interest rates, low-term repayment, and tough late repayment penalties are major factors that negatively impact the SMES financial performance by raising the cost of borrowing, causing cash flow imbalances, and trapping debt cycles. The research suggests that the policy-makers should introduce interest rate subsidies and credit guarantee programmes, financial institutions should come up with flexible credit products with longer repayment periods and clear-cut penalty frameworks, and owners of SMES should also better their cash management and negotiate attractive credit terms. The shortcomings are the cross- sectional approach and geographical scope of Mukano Central Division.
  • No Thumbnail Available
    Item
    The effect of fintech innovations on the financial performance of SMEs in Mukono Municipality
    (Uganda Christian University, 2025-09-22) Joan Florence Nabisere
    This study investigates the effect of Fintech innovations on the financial performance of small and medium enterprises (SMEs) in Mukono Municipality, Uganda. With Fintech growing at a 25.73% CAGR in Uganda and SMEs contributing significantly to the economy, the research addresses the gap in localized evidence on Fintech’s impact. Using a mixed-methods approach, the study examines mobile money services, digital lending platforms, online banking, and digital payment systems, assessing their influence on profitability, revenue growth, cash flow, access to funds, and operational efficiency. Data were collected from 66 SMEs through questionnaires and 15 interviews, analyzed using descriptive statistics and thematic analysis. Findings indicate high Fintech adoption and positive perceptions, particularly for operational efficiency and cash flow, but weak statistical correlations due to barriers like transaction fees and connectivity issues. The study aligns with the Technology Acceptance Model and Resource-Based View, recommending enhanced training, affordable lending, and infrastructure improvements to maximize Fintech’s benefits for SME sustainability and financial inclusion in Mukono.
  • No Thumbnail Available
    Item
    Internal controls and financial performance of commercial banks: a case study of Stanbic Bank Uganda
    (Uganda Christian University, 2026-04-28) Loretta Mamela Togiatayo
    This study aimed at evaluating the influence of internal controls on the financial performance of commercial banks, considering Stanbic Bank Uganda as the case study. The study specifically concentrated on the influence of the control environment, risk assessment, and control activities on financial performance. The study is anchored in Agency Theory, which highlights the importance of having measures that can help coordinate the behavior of the managers towards the goals of the stockholders to improve transparency and profitability. This study utilized the descriptive cross-sectional research design, which integrates the qualitative and quantitative methods of data collection and analysis. The study employed a sample size of 61 respondents using purposive and simple random sampling methods. Primary data were collected through questionnaires, whereas secondary data were collected from various sources such as journals and reports. According to the results, the control environment has a positive significant effect on financial performance. The main contributors to financial performance through the control environment include leadership ethics, organizational structure, and transparency culture. In addition, risk assessment also had a significant positive effect, as proper identification and management of financial risks lead to financial performance improvement. Control activities were determined to be highly effective concerning financial performance due to operational processes, internal audits, fraud prevention, and access controls. In general, the results show that internal controls have a significant role in ensuring financial performance sustainability in commercial banks. According to the results, among all studied factors, control activities had the highest impact on financial performance, followed by risk assessment and the control environment. Therefore, based on the research results, the following recommendations are proposed to improve financial performance in commercial banks: continuous employee training, ethical leadership, risk management, optimized control activities, and internal control system integration. The study further recommends future research on the impact of internal controls on non-financial performance indicators, the role of technology in strengthening internal control systems, and comparative analyses of internal control practices across other commercial banks in Uganda.
  • No Thumbnail Available
    Item
    The impact of credit rationing on the growth of small and medium enterprises in Mukono district
    (Uganda Christian University, 2026-04-27) Eric Tumwine
    This study explored the effects of credit rationing on the growth of SMEs in Mukono District, Uganda. Credit rationing, in terms of loan denial, restricted loans, interest rates, and collateral conditions, is still affecting SMEs adversely in terms of profitability, growth, and sustainability. The objectives of this study were formulated based on three major areas: relationship between credit rationing and SME profitability; alternative methods of financing employed by SMEs to improve growth; and how credit rationing affects investments and growth. The methodology chosen for the study was a cross-sectional descriptive research design. The population of this study consisted of 300 SME business owners licensed in Goma Division of Mukono Municipality, Uganda, from which 171 respondents were sampled using Yamane's (1967) formula under simple random sampling method. Structured questionnaires were used as an instrument for data collection. The return rate of 164 questionnaires out of 171 distributed translated into 96.1% response rate. SPSS was utilized to analyses collected data using means, standard deviations, Pearson correlations, and regressions. Correlation findings reveal a negative relationship between credit rationing and SME profitability (r = -0.685), as well as between credit rationing and SME expansion (r = -0.710). Findings reveal strict collateral policy (mean = 4.50) and high interest rate (mean = 4.35) to be the most significant credit rationing problems. In terms of coping strategies, alternative sources of finance like retained profits (mean = 4.60) and SACCOs (mean = 4.15) are reported. Regression analysis finds that credit rationing accounts for 57.0% of SME growth results (R² = 0.570, p < 0.001). The study has established credit rationing as one of the significant obstacles to SME profitability, growth, and expansion in Mukono District. The paper therefore recommends adoption of cash flow-based lending models by banks, streamlining of government recovery programs, and investment in financial records by SMEs. These are critical in tapping into growth opportunities of SMEs and their contribution to the country's economy.