| dc.description.abstract | The small enterprises, commonly referred to as small scale enterprises have become popular
approaches countries use to spur economic growth. However, available literature show that funds
utilization, especially borrowed funds from financial institutions has been a challenge to many
small enterprises. This study assesses the relationship between commercial bank loans and
performance of small scale enterprises. The study was conducted in Mukono Municipality,
targeting enterprises that are registered for trading license in the municipality. The study was
guided by three objectives; to assess the relationship between mortgage loans and performance
of small scale business, examine the relationship between secured loans on performance of small
scale business, to investigate the relationship between business loans and performance of small
scale enterprises. The study used a case study design; sampled small scale business from the total
list using simple random sampling technique. The sample size was 60 respondents selected from
a total of 72 small scale businesses on the schedule. Data was collected by structured
questionnaire which facilitated acquisition of relevant data for analysis. Descriptive statistics
involving frequency tables, percentages mean and standard deviation was applied in data
presentations and analysis. The findings of the study reveal that mortgage loan has positive and
significant relationship with performance of small scale businesses, the study as established
positive and significant relationship between secured loan and performance of small scale
businesses, there was also positive and significant relationship between business loan and
performance of small scale business. The study therefore concludes that mortgage loan, secured
loan and business loan are critical loan options for small scale businesses, and thus they critically
explain performance of businesses. The study therefore recommends that small scale business
owners, and managers should build capacity in loan management since it appears to contribute in
the performance of such businesses. | en_US |
