Microfinance credit terms and the financial performance of small-scale enterprises in Mukono Central Division
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Date
2026-05-08
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Uganda Christian University
Abstract
The growth and sustainability of SSEs is crucial for Uganda's economy. Small businesses help with progress in the economy by offering job opportunities and lifting people out of hardship. Even so, a large number of these small-scale enterprises struggle just to stay in business because capital remains hard to get. Loans from Micro-finance institutions have become a common solution towards stability for these Small-Scale enterprises. In addition to that is what comes with those loans, for example like how much they have to pay back, time constraints on payments, or needing assets upfront can shape whether a business is successful or barely survives. This research used a cross-sectional survey method combining numbers and personal insights where the quantitative and qualitative approaches were used. All officially listed small scale enterprises in Mukono Central Division made up the group being studied. Representation across different business types was balanced through random selection. Information came mainly from a questionnaire form filled out directly by participants, shaped around what the study aimed to find. Before full use, the form underwent testing for accuracy via the Content Validity Index (CVI). Its consistency in results would later be checked using Cronbach’s Alpha measure. Data entered into SPSS 20 went through coding before examination. To outline patterns, measures like averages, frequency counts, proportions, and spread around the mean shaped the summary approach instead of just listing numbers. Relationships linking credit conditions from microfinance lenders to business money results emerged via regression plus correlation methods. From start to finish, respect guided every step participant knew their role, could leave anytime, privacy stayed protected. Each person learned why the work mattered, trusted details shared would stay private, applied strictly for learning reasons. Results might quietly show those running lending groups, local decision makers, small shop owners in Mukono Central Division how adjusting loan rules could strengthen cash outcomes and also ensure the Sustainability of Small-scale enterprises.
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Undergraduate