The contribution of small and medium size enterprises towards the growth and development of rural areas in Uganda

Abstract

The main purpose of this research study is to assess the contribution of the small and medium size enterprises towards the growth and development of rural areas in Uganda. The study aims to make clear the role played by the small and medium enterprises in the growth and development of the rural areas. According to Chacuamba (2011), small and Medium Sized Enterprises (SMEs) are considered to be vehicles that promote generation of employment, capital accumulation and reduction of social inequality. This ultimately leads to the activation of the development process in the country. The government is therefore, responsible for shaping the policies at the central level and then activates the process of rural development through the promotion of SMEs thereby contributing to the creation of employment opportunities, income generation and the reduction of poverty. These SMEs are seen as the “vehicle” through which the rural areas in developing economies can transform and reduce on poverty and unemployment levels thereby fostering growth and development. To achieve the objectives of this study, research will be carried out using a detailed literature review thereby analysing what various authors have written about the topic and also by collecting data using self-administered questionnaires that will be given to a selected sample of respondents in the SMEs in the rural areas of Kayabwe parish. Then conclusions will be made and then recommendations will also be suggested to address the problems discovered.