Effect of Financial Interest Rates On Small Scale Enterprises. A Case Study of Owino Market I Kisenyi Flour Millers in Kamplacity

TABLE OF CONTENT

1. DECLARATION ........................................................................... .iv

2. DEDICATION .............................................................................. v

3. ACKNOWLEDGEMENT ................................................................ vi

4. LIST OF TABLES ........................................................................ vii

5. ABBREVIATIONS ...................................................................... viii

6. EXECUTIVE SUMMARY .............................................................. .ix.

CHAPTER ONE ..................................................................................... 1

INTRODUCTION ................................................................................... 1

a) BACKGROUND TO THE

STUDY ........................................................................................ 1

b) STATEMENT OF THE PROBLEM ..................................................... 1

c) MAIN OBJECTIVE OF THE STUDY ................................................... 2

d) SPECIFIC OBJECTIVE OF THE STUDY .............................................. 2

e) RESEARCH QUESTIONS ................................................................ 2

f) SCOPE OF THE STUDY .................................................................. 2

g) SIGNIFICANCE OF STUDY ............................................................. 3

h) LIMTATION TO THE STUDY ........................................................... 3

CHAPTER TW0 .................................................................................... .4

(LITERATURE REVIEW) .. .

a) DEFINATION OF SMALL SCALE ENTERPRISES ................................ .4

b) HOW BUSINESS ARE FUNDED ........................................................ 5

c) ARGUMENTS AGAINST SUBSIDISED INTEREST RATES ..................... 6

d) EFFECTS OF INTEREST RATES TO LENDERS AND BORROWERS ......... 9

e) MANAGEMENT OF INTEREST RATES IN UGANDA .......................... 13

1!

f) DISCUSSIONS ON INTEREST RATES IN UGANDA. .......................... 14

g) POLICY ACTIONS TO REDUCE INTEREST RATES ........................... .20

h) EXAMPLES OF SMALL SCALE ENTERPRISES .................................. 20

i) EFFECTS OF INTEREST RATES TO BUSINESS .................................. 21

j) MAIN FEATURES OF CREDIT ....................................................... 29

k) DETERMINATION OF INTEREST RATES IN UGANDA ...................... .31

CHAPTER THREE ................................................................................ .37

a) METHODOLOGY ........................................................................ 37

b) RESEARCH DESIGN ..................................................................... 37

c) POPULATION STUDY .................................................................. 37

d) DATASOURCE ........................................................................... 37

e) DATA COLLECTION METHODS .................................................... .38

f) DATAANALYSIS ........................................................................ 38

CHAPTER FOUR ................................................................................. .39

a) INTRODUCTION ........................................................................ .39

b) POPULATION CHARACTERISTICS ................................................ .39

c) SIGNIFICANCE OF CREDIT .......................................................... .40

d) WHY SSE BORROW LITTLE MONEY ............................................. .46

e) SOURCE OF CAPITAL OF SSE ...................................................... .46

f) REMEDIES TO LITTLE BORROWING ............................................. 53

CHAPTER FIVE ................................................................................... .54

a) SUMMARY ................................................................................ 54

b) CONCLUSION ............................................................................ 57

c) RECOMMENDATIONS .................................................................. 63

APPENDIX:

QUESTIONNAIRES

LETTER FROM ADMINISTRATION

BIBLIOGRAPHY (REFFERENCES)