Financial inclusion and investment decisions of small sized enterprises in Uganda
No Thumbnail Available
Date
2026-05-22
Authors
Journal Title
Journal ISSN
Volume Title
Publisher
Uganda Christian University
Abstract
The small sized enterprises are important in the economy of Uganda with regards to creating employment, income, and providing a contribution to the growth of the private sector. This capacity to invest in productive practices like expanding their business and acquiring assets is what will make them sustainable in the long term. As a major facilitator of such investment, financial inclusion has been popularized but it has been established that more access to financial services do not automatically translate into better investment performance among small businesses. This paper will look into the association between financial inclusion and investment choices of small sized enterprises in Uganda based on the secondary data provided by the FinScope Uganda 2023 survey. This paper uses a cross-sectional research strategy and targets the owners of enterprises that are represented in the nationally representative FinScope data. Financial inclusion is gauged on access to savings services, access to credit services, and utilization of financial services whereas investment decisions are gauged in terms of business expansion, acquisition of assets and reinvestment of financial resources. The descriptive and inferential statistical methods such as correlation and regression analysis are used to analyze the data and determine how the variables of the study relate. It is expected that the study will give empirical data on the effect of financial inclusion on investment behavior of small sized businesses in Uganda. The research has added to the literature that has been done so far, by utilizing nationally representative secondary data to study the investment choices of enterprises. It is expected that the results will inform policymakers, financial institutions, and development partners in the formulation of financial inclusion interventions, and financial products that will better suit productive investment and sustainable growth of small sized businesses in Uganda.
Description
Undergraduate