The Impact Of Financial Services On The Performance Of Small And Medium Size Enterprises: Acase Study Of Wobulenzi Trading Centre Kampala

ABSTRACT

The purpose of this research was to determine the impact of financial services on the

performances of small and medium enterprises in Wobulenzi trading centre Uganda. A cross

sectional, descriptive and analytical research design was used. A correlation analysis between the

business performances against loans usage and financial acivices was calTied out to test the

direction and strength of relationships between the study variables A regression analysis focusing

on financial services was used to establish the extent to which the business performs. The study

objectives were; to establish the impact of loan usage on performance in Wobulenzi trading

centre; to determine the impact of bank accounts usage on the performance of small and medium

enterprises Wobulenzi trading center: to determine the impact of financial advice on the

performance of small and medium size enterprises in Vobulcnzi tradinc center.

The findings indicate a positive relationship between financial services and business

performances. This implies that if the business people have positive perception towards saving

account, they are bound to trust the services offered to them in this Fashion and therefore

ehanginc business operatmn should be gi~ en more em basis by Vuhulcnzi trading center.

Findings further reveal that there was a negative relationship between business performances and

financial advice ollereci to the traders that was when the level of customer’s high. customers may

not demand more and therefore a clear strategy to reduce the business activities to be put in

place. The study concluded that financial services significantly affuct the performances of’ small

and medium enterprises and therefbre recommended that financial services increment should be

emphasized in Wohulenzi trading center to improve business performance. There are little Fallow

up on the by the banks on the bank loans given the traders hence causing a huge gap in the

carrying out of the study.