Financial Loans and Growth of Small Scale Enterprises in Uganda

This book explains how Small Scale Enterprises (SSEs) achieve growth with financial loans. It was established that secured loans at 5% level of significance support growth of SSEs comparing to business working capital loans and group loans. Although financial loans enhance growth of enterprise, financial loans are a source of capital structure composition for SSEs which require critical analysis to make a decision on which one to invest in the business. Group loans are easily accessible and are unsecured. However, group members guarantee each other to obtain the loan from the lending institution like commercial banks, micro-finance institution, saving and credit societies and the like.In Uganda, access to formal banking support by small scale enterprises was a dream to many entrepreneurs as majority of them were unable to access financial loans especially from formal financial institutions like commercial banks amongst others. The study recommends that the government, non-government organizations and other stakeholders should sensitize and train entrepreneurs on how to access and use finance loans in the business to enhance growth of small scale enterprises.