Funding Sources and Financial sustainability of Small-Enterprises

The study analyzed the relationship between funding sources and financial sustainability of small-scale enterprises the objectives of the study were; the effect of traditional debt on financial sustainability of Small-scale Enterprises, the effect of equity financing on financial sustainability of Small-scale Enterprises and the effect of asset-based financing on financial sustainability of Small-scale Enterprises within Kyengera trading centre. The study adopted both descriptive and survey research designs using a population of 160 and sample size of 140 respondents and the findings were summarized below;There was a very strong significant positive relationship between traditional debt and financial sustainability of SMEs in Kyengera trading centre. The (adjusted R Squared) coefficient of determination indicated that 52.4% of the variation in financial sustainability of SSEs. There was a weak positive relationship between equity financing and financial sustainability of SS’s within Kyengera trading centre. The (adjusted R Squared) coefficient of determination value of about 0.242 indicates that 24.2% of the variation in financial sustainability of SSE’s.