ग्लोबल जर्नल ऑफ कॉमर्स एंड मैनेजमेंट पर्सपेक्टिव
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Improving Credit Accessibility among SME’s in Uganda

Alice Arinaitwe and Rogers Mwesigwa

The purpose of this paper is to establish the ways of Improving Credit Accessibility among Small Medium Enterprises in Uganda. The paper adopts both quantitative and cross sectional research designs. Using simple random sampling procedures, a sample of 92 SME’s was drawn from Kampala of which a response rate of 78.3 percent was obtained. Data was collected using self administered questionnaires. The study however employed only a single research methodological approach and future research through interviews could be undertaken to triangulate. Results show that lack of collateral security by SME’s, lack of audited books of accounts and financial institutions regarding SME’s as high risk borrowers. Results further show that high interest rates charged by financial institutions limits Small Medium Enterprises from accessing credit. In order to improve credit accessibility of SME’s in Uganda, financial institutions should reduce on interest rate to enable Small Medium Enterprises access credit. Financial institutions should design loan packages for SME’s. There should be a national business policy that recognizes the importance of small businesses and incentives to encourage growth of Micro Finance Institutions which cater for the Small Medium Enterprises sector.