ADAPTING TO CHANGE AND ORGANIZATIONAL GROWTH IN SMALL AND MEDIUM ENTERPRISES. A CASE STUDY IN SELECTED MICROFINANCE DEPOSIT TAKING INSTITUTIONS IN KAMPALA, UGANDA.

ABSTRACT

This study investigated the effect of adapting to change and organizational growth in Small and

Medium Sized Enterprises (SMEs) in selected Micro-Finance Deposit Talcing Institutions

(MDis) in the central region in Uganda. The parameters of change included technology,

innovation, research and development and competent management. Growth was considered in

terms of revenue, profitability and liquidity. The study was conducted in the central region in

Uganda. The population consisted of 150 respondents with a sample size of I 09. Data was

collected by use of questionnaires according to the research objectives and questions which were

encoded into the statistical research package for social sciences (SPSS). Data was processed and

analyzed using descriptive statistics to show the frequencies and percentage distribution. The

mean and standard deviations were applied to establish the level of adapting to change and

organizational growth in the selected MDis in the central region in Uganda. The Pearson's linear

correlation coefficient (PLCC) was used to correlate the variables and to test the existence of

significant relationship between the dependent and independent variables. The study according to

the results from the respondents indicated that adapting to change in technology, innovation,

research and development and also having competent management is imperative if the small and

medium sized enterprises specifically the microfinance deposit taking institutions are to achieve

growth in terms of revenue, profitability and liquidity, and hence attain the departmental

objectives as well as the overall organizational goal. The findings also indicated a significant

positive correlation between the dependent and independent variables based on 0.01 level of

significant and therefore rejecting the null hypothesis, that there is no significant relationship

between adapting to change and organizational growth in microfinance deposit talcing

institutions in Kampala Uganda.