The effect of youth funds on the performance of small-scale businesses: case study Small-scale business holders in Musajjaalumba

Abstract

As a supplement to working capital for small scale businesses, youth funds are one way of boasting businesses. One of the key hindrances to entrepreneur development amongst the youth in Uganda has been lack of funds to start up and also to supplement their businesses. This study aimed at finding the effect of youth funds on the performance of small scale businesses, to establish the effect loans have on the performance of small scale businesses; find out the role of training in youth fund usage and to find out the how challenges faced in accessing youth funds impact on the performance of small scale businesses. The study was carried out using a combination of both quantitative and qualitative approaches .Data was collected from Small Scale businesses in the area of Musajja Alumba from 36 respondents out of the 62 target population. There was randomly selected bringing together information from the field by use of a questionnaire. Descriptive analysis was used to conduct the analysis of data and the findings showed that; loans have an effect on the performance of small scale businesses, training plays a major role on the performance of small scale business and there are challenges that small scale business owners face in accessing youth funds and so these affect their performance reason being that they are not enabled to acquire these funds. It was recommended that the youth should manage finances responsibly, use appropriately the funds acquired .Continuous trainings should be carried out for proper controlling, planning, managing, monitoring and evaluating of business performance. This study was limited to the demand side of the youth fund by the Small Scale business holders. There is need for future research on the constraints the suppliers of the youth funds face .Involving all formal and informal sector lending institutions and saver