Long term Financing and Development of Small and Medium Enterprises in Uganda: A case study of MPK GRAPHICS
Author (s):
Sabiiti Mulema
Abstract
The study intended to identify how long-term financing influences development of Small and Medium enterprises (SMEs). It focused on MPK Graphics as a case study. The purpose of the study was to establish the impact of long-term financing on development of SMEs in Uganda. The research design was descriptive and the study used both quantitative and qualitative research approach. Stratified and purposive samplings were used to select respondents. The data collected was analyzed using SPSS version 22.0. Descriptive analysis was used to draw the picture of the respondents, Pearson correlation was used to test the relationship between the study variables, while regression analysis was used to test the effect between the variables of the study. Therefore, factor analysis was employed to determine long-term financing dimensions in small and medium enterprises in Uganda. The major findings of the study were that there was a positive relationship between Long term financing and Development of SMEs in Uganda (r = 0.751, P-value < 0.01); a positive relationship between financial performance and Development of SMEs in Uganda (r = 0.436, P-value < 0.01) and showed (R= 0.810) in a combination of Long term financing, financial performance in assessing the level to which they can predict the level of Development of SMEs in Uganda. These variables explained 59.7 per cent of the variance of Development of SMEs (R Square =.597). The most influential predictor of Development of SMEs was Long term financing (β = .622, Sig. 294). Long-term finance frequently defined as all funding for a time frame exceeding one year may contribute to faster growth, greater welfare, shared prosperity, and enduring stability in two important ways: by reducing rollover risks for borrowers, thereby lengthening the horizon of investments and improving performance.
Key words: Long-term Financing, Small and Medium Enterprises, SME Development, MPK GRPHICS, Uganda.
| Title: |
Long term Financing and Development of Small and Medium Enterprises in Uganda: A case study of MPK GRAPHICS |
|---|---|
| Author: |
Sabiiti Mulema |
| Journal Name: | International Journal of Science and Business |
| Website: | ijsab.com |
| ISSN: | ISSN 2520-4750 (Online), ISSN 2521-3040 (Print) |
| DOI: | https://doi.org/10.5281/zenodo.3236425 |
| Media: | Online |
| Volume: | 3 |
| Issue: | 3 |
| Acceptance Date: | 29/05/2019 |
| Date of Publication: | 01/06/2019 |
| PDF URL: | https://ijsab.com/wp-content/uploads/369.pdf |
| Free download: | Available |
| Page: | 310-325 |
| First Page: | 310 |
| Last Page: | 325 |
| Paper Type: | Research Paper |
| Current Status: | Published |
Cite This Article:
Mulema, S. (2019). Long term Financing and Development of Small and Medium Enterprises in Uganda: A case study of MPK GRAPHICS. International Journal of Science and Business, 3(3), 310-325. doi: https://doi.org/10.5281/zenodo.3236425
Retrieved from https://ijsab.com/wp-content/uploads/369.pdf
About Author (s)
Sabiiti Mulema, MBA-Management, St. Augustine International University, Kampala-Uganda.
DOI: https://doi.org/10.5281/zenodo.3236425