The role of microfinance on the performance of small and medium scale enterprises (SMEs) in Uganda; A case study of Centenary bank, Mbarara branch

Abstract

This paper investigated the role of Microfinance on performance of SMEs in Mbarara District, in Western part of Uganda; using Centenary bank Mbarara branch as the case study. The research investigated the impact of Microfinance services such as Microfinance loans, savings and training on performance of SMEs such as profitability, expansion, job creation and sustainability of Micro enterprises. The results found out that Microfinance affects the profitability, finance and expansion of SMEs, and sustainability of the Micro enterprises, hence affected performance of SMEs. This study targeted beneficiaries of Microfinance in Centenary bank (Mbarara branch) from whom responses were obtained by use of questionnaires and interviews. The responses given in the questionnaires were analyzed by use of SPSS, and the outcomes interpreted on the basis of percentages derived from SPSS processor. This paper consists of five chapters, in which the first covers the introduction, background of the study, overview of the case study and statement of the problem. The succeeding chapters handle the literature review, research methodology and design, data presentation and analysis, and the conclusions and recommendations respectively