Financial inclusion and the growth of small medium enterprises in Uganda: empirical evidence from selected districts in Lango sub-region
The growth and failure of small and medium enterprises has been a topic of discussions world over among policymakers and researchers. This study was guided by the following objectives: to examine the contributions of small medium enterprises (SMEs), to determine the challenges affecting small med...
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| Main Authors: | , , , , |
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| Format: | Article |
| Published: |
Journal of Innovation and Entrepreneurship
2021
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| Subjects: | |
| Online Access: | http://hdl.handle.net/20.500.12493/518 |
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| Summary: | The growth and failure of small and medium enterprises has been a topic of
discussions world over among policymakers and researchers. This study was guided
by the following objectives: to examine the contributions of small medium
enterprises (SMEs), to determine the challenges affecting small medium enterprises,
to examine how financial inclusiveness supports the growth of small medium
enterprises, and to establish the relationship between financial inclusion and growth
of small medium enterprises. The study used a cross-sectional research design.
Descriptive design was used and supplemented by inferential statistics. Correlation
and regression analysis were adopted. The study revealed that financial inclusion is
significant in supporting SME growth. The study further also revealed that the cost of
acquiring and servicing financial services is high; there is also difficulty in using some
of the financial services, and the way financial providers treat financial users, some
lacked some degree of respect and dignity. The study recommends that financial
providers should continue sensitizing the public on the available financial services
beyond credit services, which are common and known. Digital financial service
providers should encourage their clientele to use digitalized financial services which
are cheap, secure, and risk averse. The cost of capital should also be reduced to
encourage borrowing while SMEs should innovatively produce goods that can be
competitive at both domestic and international markets. |
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