| dc.description.abstract | Small and Medium Enterprises (SMEs) play an important role in the socio-economic
development of any country. They provide an appropriate channel for the achievement of
national macroeconomic objective in terms of employment generation at low investment cost
and enhancement of apprenticeship training. The objectives of the study was to examine the
effect of credit on the performance of SMEs in Juba city, to assess the role of training on the
performance of SMEs in Juba city and to assess how mobilization of savings affects growth
of SMEs.
This research problem was studied through the use of a descriptive research design. The
research sample for study was50 respondents of which 39 responded. This research study
used purposive sampling technique and specifically the judgmental sampling method to select
39 SMEs which is representative of the target. Primary data was gathered through structured
questionnaires. The data was then analyzed using SPSS v20 software package. The linear
regression model was applicable since it allowed simultaneous investigation of the
correlations among different variables. Multivariate regression model was applied to
determine the relative importance of each of the three variables; microcredit, savings and
training, with respect to the effects of microfinance services on the performance SMEs. The
data findings analyzed also shows that taking all other independent variables at zero, a unit
decrease in Microcredit provided by MFI will lead to a (-0.569) decrease in the performance
of the SME; a unit increase in savings showed a 0.340 of the SME increase in performance
but was not significant predictor of performance, while a unit decrease in training services
provided to the SME will lead to a (-0.298) decrease in performance of the SME. The
ANOVA analysis was intended to investigate whether the variation in the independent
variables explains the observed variance in the outcome. The ANOVA findings in this study
showed that at 5% level of significance and 95% level of confidence, the study found out that
Microfinance services, microcredit, savings and training were all significant in the
performance of the SME. Based on the key findings, the study made the following
recommendations. Microfinance Institutions should enhance training of their clients on the
entrepreneurial skills so as to enhance their skills as a large proportion of the respondents
were found to be certificate holders of high school graduates hence they lacked the necessary
business management skills. The study also recommends the MFIs carry out sensitization
campaigns on the need to save among the SMEs. The study also recommends that the MFIs
use that traders savings as part of collateral since most may not have large tracts of land or
the physical collateral needed. | en_US |
