The Impacts of access to finance on performance of small medium enterprises; A case study of Mbale central market

Abstract

This study was designed to find out the impact of access to finance on performance of Small medium enterprises in Mbale Town. It was particularly intended to identify the impacts of access to finance on performance of small medium enterprises in Mbale Central Market. The researcher used both qualitative and quantitative research designs with a case study and a size of 60 out of 80 respondents. It should be noted that both primary and secondary data was used and the data collection methods included use of questionnaires and random sampling to collect detailed information; they contained both open-ended and closed questions and data was analysed using SPSS. This was used to improve easy accessibility of finance that determine the performance of the SMEs. The respondents included; managers, business owners and employees. The study established that access to finance has got great impacts on the performance of the SMEs.The findings show a great role of access to finance and the positive impacts on SMEs. The study recommends that manager, business owners should adopt the wide use of radio advertising strategy, bank loans, customer’s satisfaction because they are mostly used by people. Also different languages can be used on same radio this becomes cheap to meet different customers of different cultures using languages like Kiswahili, English, Luganda and Runyankole. Market research need to be emphasized so that through research customers’ needs and wants can be discovered. This may enhance the production of client’s tastes and preferences. In conclusion, the relationship between finance and performance of Small Medium Enterprises can be termed as a strong positive correlation, finance drives performance. If business owners and managers ignore the role of information updates concerning access to finance, performance of the SMEs may dettoriate