Banking Services and Development of Small Scale Businesses Makindye Division, in Kampala Uganda

ABSTRACT 

This study was carried out to determine banking services and development of small scale businesses in Makindye Division Kampala. The objectives were: to identify the demographic characteristics of the respondents in terms of: Gender, Age, Academic qualifications, Marital status and Duration as an account holder, To determine the level of banking services towards customers, To determine the levels of business development in terms of: Sales, Expansion, Job creation. To establish if there is a significant effect of banking services on development of small scale businesses, and To establish if there is a significant relationship between banking services and development small scale businesses. The study adopted a descriptive survey and correlational design. The sample size comprised of 285 respondents, who were entrepreneurs owning small scale businesses in Makindye Division Kampala, and had bank accounts for their businesses. The main findings showed that majority of the respondents were female with 57% and those between 20 -39 years 84%. Most of the respondents had held bank accounts for more than five years. The findings also showed that majority of the respondents had had the account for five years and above. The results indicate that there is a significant relationship between banking services and the level of business development in terms of expansion and job creation. This was however not the case in terms of sales. Based on the findings, the researcher recommends that banks should have a department which caters for small scale business owners by offering advisory and other professional guidance regarding their businesses. These banks’ employees should make their clients feel part and parcel of the bank, by finding out their reactions first before implementing the policies. The bdrlks should disu offer training to their clients on how to increase investments. This would enhance the bank and the customer relationship.

TABLE OF CONTENTS

DECLARATION A

DECLARATION B

Chapter Page

One THE PROBLEM AND ITS SCOPE 1

Background of the Study i

Statement of the Problem 2

Purpose of the Study 2

Research Objectives 3

Research Questions 3

Hypothesis 4

Scope 4

Significance of the Study 4

Operational Definitions of Key Terms 5

Two REVIEW OF RELATED LITERATURE 6

Concepts, Ideas, Opinions From Authors/Experts 6

Theoretical Perspectives 12

Related Studies 13

Three METHODOLOGY 15

Research Design 15

Research Population 15

sample Size 15

Sampling Procedure 16

Research Instrument 16

Validity and Reliability of the Instrument 17

Data Gathering Procedures ii

Data Analysis 19