Financial Credit And Business Enterprises Performance Of Small And Medium Enterprises (Sme's) In Selected Business Entities Ofkisenyi-kampala

ABSTRACT The study was to establish the relationship between financial credit and business performance in selected business entities in Kisenyi -Kampala district- Uganda. It was guided by four specific objectives, which included; i) to determine the level of financial credit; iii) to determine the level business performance and iv) to determine the relationship between financial credit and business performance. The study used a descriptive correlation design that use both qualitative and quantitative methods of data collection. The research tools that were used in the study included the following: (!)face sheet to gather data on the demographic information (gender, age, marital status and educational level) (2) researcher devised questionnaires to determine the levels of financial credit and business performance. The response modes and scoring were as follows 1); strongly disagree (2); disagree (3); agree (4); strongly agree, interviews were the other data collection technique that was used by the Researcher. The findings indicated that most respondents (60%) were female, aged 31-49 years, majoriti·es were degree holders (50.4%), (66%) were married. As far as the level of financial eredit is concerned, it was generally high meaning that respondents do get credits so as to finance their businesses and this was indicated on average mean of 2.55 and the level of business performance showed on average a mean of2.28 this was because of the interest rates that they are supposed to pay after a given period of time. The findings also indicated a positive significant relationship between political wars and rape (1=0.300, sig. =0.000) indicating that the financial credit contribute signif1cantly to the business perfo.·mance. From the findings and the conclusions of the study, the researcher recommends i) there is need to uplift the competencies of the respondents as far as business is concerned ,ii) There is need to reduce on the interest rates so that they can favor even low income earners since it was found out that performance is low, iii) members should be trained with skills in entrepreneurship & small business management hence to reduction of poverty , iv) there is a need to reduce on the collateral securities that they ask people for especially when they are going to borrow money so that someone can get enough working capital and v) there is a need to improve on the managerial skills so that the business boasts.