The Effects Of Loan Capital .And Performances Of Small Medium Enterprises; A Case Study Of Owino Market

ABSTRACT

The study loan capital and performance of small-scale businesses was conducted

in Kampala District specifically in Owino market. The main pmpose of the study was to

find out the relationship between loan capital and perlonnance of small-scale businesses. Other

objective inchJ.ded to examine the importance of loan capital on small-scale businesses to

examine the weaknesses of loan capital on small-scale businesses to establish the relationship

between k>an capital and perlonnance of small-scale businesses in Uganda.

The study adopted descriptive research design and simple random sampling

technique. Thirty traders were picked from Owino market and givenquestionnairesto

respond to. It was found out that majority of the traders obtained loans from micro finance

institutions, credit institutions to start up and boost their businesses. From the study

findings, it was revealed that the small-scale business activity in Uganda was boomirg

and comprised the biggest portion of business in Uganda.

The study found out that there was a not strong relationship between loan capital and

performance of small-scale businesses that was indicated by Pearson's co-efficient of0.4.

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