Lending terms and financial performance of SMEs In Uganda
The book explains how lending terms affects the financial performance of SMEs in Uganda. The SMEs... more The book explains how lending terms affects the financial performance of SMEs in Uganda. The SMEs sector in Uganda is extremely has limited access to finance in terms of lack of financial records, collateral security, credit worthiness, and high interest rates which later affects the performance of the SMEs. The purpose of the study was to examine the relationship between lending terms and financial performance of SMEs in Uganda through improved access to low cost finance and ease of access to banks. The study has created avenues for discussion to the extent that the financial institutions in Uganda have developed diverse lending platforms to SMEs to improve their financial performance and Reduce the collapse of SMEs before their first anniversary in order to encourage them to create a better operating business environment in the SME sector. I explore to encourage readers to compare our approach to bring in more insights to the SME & Banking sector best practices of lending to susta...
The Ugandan banks still faced with challenges of non-performing assets based on inaccurate inform... more The Ugandan banks still faced with challenges of non-performing assets based on inaccurate information on clients, wrong clients and weak controls within the financial system. Consequently, evidence of weak financial performance of many banks was seen in large provisions for bad loans being made, and subsequent write offs of delinquent loans when they went bad, thus affecting bank efficiency. A cross sectional survey and descriptive research design was used, a sample size of 9 commercial banks was analyzed and interpreted using financial ratios of DuPont analysis of commercial banks. Findings show that a combined variation of maturity gaps, basis risk and assets and liabilities margins for all the commercial banks accounted for up to 14.9% variation in their banks performance. The variation explained 20.19% of the performance of the commercial banks, would predict maturity gaps, basis risk, and assets and liabilities margins. The overall analysis of interest rate risk exposure and bank performance showed generally a positive relationship except basis risk
The rate of improvement on SMEs performance in developing countries was significantly lower than ... more The rate of improvement on SMEs performance in developing countries was significantly lower than in the developed world as a result of weak clients' financial performance linked to high lending terms. A cross sectional survey and descriptive research design was used and questionnaire administered to the SMEs. Findings reveal that there was insufficient liquidity, effective financial efficiency of resource utilization, high risk of solvency leading to financial distress and that lending terms of financial institutions are linearly related to the financial performance of SMEs with the lending terms explaining 26.6% variations of the performance of SMEs that borrowed. Thus lending terms of financial institutions had a low influence in performance than other factors.
The purpose of the study was to investigate empirically which factors contribute to the adoption ... more The purpose of the study was to investigate empirically which factors contribute to the adoption of Short Message Service (SMS) banking in the West Nile region in Uganda based on student mobile users who own bank accounts. Respondents were drawn from 3 University Campuses in the West Nile region in Uganda where students and mobile users who own bank accounts were identified. Through purposeful sampling, a selfadministered questionnaire was administered to a sample of 90 graduate students from the three selected University Campuses with 60 questionnaires returned hence a response rate of 70%. Quantitative statistics that includes means, frequencies and percentages were used to analyze the data. The results reveal that there is strong positive relationship between financial cost, quality of Internet connectivity, complexity and trialability as far as SMS banking adoption is concerned. Age and gender also played a significant influence in SMS banking at different categories of students. Whereas perceived ease of use, security and trust influence were not significant for SMS banking adoption. Consequently, the study conclude that in order to increase adoptability of SMS banking, banks in liaison with telecom service providers, are advised to improve on the Internet connectivity and affordability to support usage of mobile money platform.
Lending terms and financial performance of SMEs In Uganda
The book explains how lending terms affects the financial performance of SMEs in Uganda. The SMEs... more The book explains how lending terms affects the financial performance of SMEs in Uganda. The SMEs sector in Uganda is extremely has limited access to finance in terms of lack of financial records, collateral security, credit worthiness, and high interest rates which later affects the performance of the SMEs. The purpose of the study was to examine the relationship between lending terms and financial performance of SMEs in Uganda through improved access to low cost finance and ease of access to banks. The study has created avenues for discussion to the extent that the financial institutions in Uganda have developed diverse lending platforms to SMEs to improve their financial performance and Reduce the collapse of SMEs before their first anniversary in order to encourage them to create a better operating business environment in the SME sector. I explore to encourage readers to compare our approach to bring in more insights to the SME & Banking sector best practices of lending to susta...
The Ugandan banks still faced with challenges of non-performing assets based on inaccurate inform... more The Ugandan banks still faced with challenges of non-performing assets based on inaccurate information on clients, wrong clients and weak controls within the financial system. Consequently, evidence of weak financial performance of many banks was seen in large provisions for bad loans being made, and subsequent write offs of delinquent loans when they went bad, thus affecting bank efficiency. A cross sectional survey and descriptive research design was used, a sample size of 9 commercial banks was analyzed and interpreted using financial ratios of DuPont analysis of commercial banks. Findings show that a combined variation of maturity gaps, basis risk and assets and liabilities margins for all the commercial banks accounted for up to 14.9% variation in their banks performance. The variation explained 20.19% of the performance of the commercial banks, would predict maturity gaps, basis risk, and assets and liabilities margins. The overall analysis of interest rate risk exposure and bank performance showed generally a positive relationship except basis risk
The rate of improvement on SMEs performance in developing countries was significantly lower than ... more The rate of improvement on SMEs performance in developing countries was significantly lower than in the developed world as a result of weak clients' financial performance linked to high lending terms. A cross sectional survey and descriptive research design was used and questionnaire administered to the SMEs. Findings reveal that there was insufficient liquidity, effective financial efficiency of resource utilization, high risk of solvency leading to financial distress and that lending terms of financial institutions are linearly related to the financial performance of SMEs with the lending terms explaining 26.6% variations of the performance of SMEs that borrowed. Thus lending terms of financial institutions had a low influence in performance than other factors.
The purpose of the study was to investigate empirically which factors contribute to the adoption ... more The purpose of the study was to investigate empirically which factors contribute to the adoption of Short Message Service (SMS) banking in the West Nile region in Uganda based on student mobile users who own bank accounts. Respondents were drawn from 3 University Campuses in the West Nile region in Uganda where students and mobile users who own bank accounts were identified. Through purposeful sampling, a selfadministered questionnaire was administered to a sample of 90 graduate students from the three selected University Campuses with 60 questionnaires returned hence a response rate of 70%. Quantitative statistics that includes means, frequencies and percentages were used to analyze the data. The results reveal that there is strong positive relationship between financial cost, quality of Internet connectivity, complexity and trialability as far as SMS banking adoption is concerned. Age and gender also played a significant influence in SMS banking at different categories of students. Whereas perceived ease of use, security and trust influence were not significant for SMS banking adoption. Consequently, the study conclude that in order to increase adoptability of SMS banking, banks in liaison with telecom service providers, are advised to improve on the Internet connectivity and affordability to support usage of mobile money platform.
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