Journal
Metropolitan Journal of Academic and Applied Research
MJAAR
Access To Finance And Performance Of Small And Medium Enterprises In Uganda: A Case Of Selected Smes In Kabale Municipality
Kato Evarist, Magara Muhammed
| Journal | Metropolitan Journal of Academic and Applied Research (MJAAR) |
| Volume / Issue | Vol. 5, No. 6 |
| Published | 30 June 2026 |
| ISSN | 3006-6417 |
Abstract
This study examined the relationship between access to finance and the performance of small and medium enterprises (SMEs) in Kabale Municipality, Uganda. The study was motivated by the persistent challenges faced by SMEs in accessing adequate and affordable finance, and the consequent limitations on their growth and contribution to economic development. A descriptive cross-sectional design was adopted, and data were collected from a sample of 150 SME owners and managers selected through stratified random sampling. Structured questionnaires measured access to finance across three dimensions — access to bank credit, access to microfinance, and access to equity/informal finance — and SME performance across financial performance, operational efficiency, and market growth dimensions. Descriptive, correlation, and regression analyses were conducted. Results showed that access to bank credit (β = 0.412, p < 0.001), access to microfinance (β = 0.287, p < 0.001), and access to equity and informal finance (β = 0.219, p = 0.003) were all significant positive predictors of SME performance, with the regression model explaining 71.8% of performance variance (R² = 0.718). The study concluded that financial access is a critical determinant of SME performance and recommended reforms in collateral requirements, expansion of SME-focused financial products, and strengthening of credit guarantee schemes to unlock growth potential of SMEs in Kabale Municipality.
Keywords
Access to Finance
SME Performance
Bank Credit
Microfinance
Equity Finance
Small
Cite This Article
Kato Evarist & Magara Muhammed (2026). Access To Finance And Performance Of Small And Medium Enterprises In Uganda: A Case Of Selected Smes In Kabale Municipality. Metropolitan Journal of Academic and Applied Research, 5(6). https://journals.miu.ac.ug/pages/article.php?article_id=646
More in This Issue
View full issue →
26
Regional disparities in school dropout: a comparative study of Karamoja and national trends
Regional Disparities and School Dropout
27
Supplier Evaluation On Procurement Performance: A Case Of Mukwano Group Of Companies, Kampala, Uganda
Supplier evaluation
procurement performance
supply chain management
Mukwano Group
28
Taxpayers' Skills And Tax Compliance Among Small Business Taxpayers In Kampala, Uganda
Taxpayers' skills
tax compliance
financial literacy
record-keeping
29
Teamwork And Organisational Performance: A Case Of Mogas Petroleum Company In Kampala, Uganda
Teamwork
organisational performance
team communication
cohesion
30
The effectiveness of the National Accelerated Education Programme (AEP) in re-engaging out-of-school youth
Accelerated Education Programme
out-of-school youth
re-engagement
Uganda