| dc.description.abstract | Small scale businesses are the catalyst for economic growth in most developing countries thus,
the basic objective of this study was to examine the effect of commercial bank credit on Small
scale businesses (SSBs) in Mbarara, Municipality Kakoba Division. The specific objectives of
the study were; to assess the relationship between mortgage loans and SSBs, examine the
relationship between secured loans and SSBs and to investigate the relationship between
business loans and performance of SSBs. Simple random sampling technique was engaged in
selecting the 72 SSBs that constituted the sample size of the research. Structured questionnaire
was designed to facilitate the acquisition of relevant data which was used for analysis.
Descriptive statistics which involved simple percentage mean and standard deviation was
tactically applied in data presentations and analysis.
The findings of the study revealed that commercial bank credit has been advantageous to Small
scale businesses though only few of them were capable enough to secure the required amount
needed. Interestingly, majority of the SSBs acknowledge positive contributions of loans towards
their development especially in business world. Commercial banks should assess their interest
rate towards small scale businesses since their profits are low and margined and also share best
practices with their SSB customers especially on the efficient use of loans; this will boost their
productivity and support SSBs.
Therefore, the first and complete means for analyzing and monitoring the overall Commercial
bank credit to the performance of small scale businesses which can be designed to observe the
SSBs needs as it takes their characteristics into account hence a base for further research in the
field of Small Scale Businesses and bank credit performance. | en_US |
