Credit Financing and Profitability of Small-Scale Enterprises in Kabale Municipality: A Case Study of Selected Enterprises in Southern Division.
The study was about examining the effect of credit financing and profitability of small-scale enterprises in Kabale Municipality a case study of selected Enterprises in the Southern Division. The study was based on three objectives such as; to identify the role of credit for financing on profitabili...
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| Format: | Thesis |
| Language: | English |
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Kabale University
2024
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| Subjects: | |
| Online Access: | http://hdl.handle.net/20.500.12493/2199 |
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| Summary: | The study was about examining the effect of credit financing and profitability of small-scale enterprises in Kabale Municipality a case study of selected Enterprises in the Southern Division. The study was based on three objectives such as; to identify the role of credit for financing on profitability in small-scale enterprises, to examine the determinants of Profitability in Small-scale Enterprises, and to establish the relationship between Credit Financing and Profitability of small-scale enterprises. The study used a cross-sectional research design. Data was collected using a questionnaire and interview guide, and simple random and purposive sampling methods were used. Both qualitative and quantitative methodologies were used to analyze data as a sample size of 40 respondents was used. The study revealed the role of credit for financing on the profitability of small-scale enterprises in Southern Division Kabale Municipality and these included productivity enhancement, risk mitigation capital provision, and growth opportunities. The study revealed the determinants of Profitability in Small-scale Enterprises in Southern Division Kabale Municipality and these included Credit financing, age of small-scale enterprises in operation, location of the business, customer care of the business owner, the degree of competition, and strength of demand. Lastly, that the study revealed that there is a relationship between Credit Financing and the Profitability of small-scale enterprises in Southern Division Kabale Municipality the results included credit financing provides access to capital for the business, credit financing helps in the sustainability of the business, credit financing helps in increasing investment opportunities, helps to compete favorably with other businesses, it helps the business to continue expanding and enables the sales volumes of the business always to increase. The study further concluded by showing the role of credit for financing on the profitability of small-scale enterprises in Southern Division Kabale Municipality and this included productivity enhancement, risk mitigation, capital provision, and growth opportunities. |
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