Loans and growth of small-scale enterprises in Uganda: A case study of Kampala Central business area

Nzibonera, Eric; Waggumbulizi, Ivan

doi:10.5897/ajbm2020.8985

Cited by 3 publications

(3 citation statements)

References 9 publications

Supporting

Mentioning

Contrasting

Order By: Relevance

“…Extensive studies on the financing decisions of large and publicly traded companies have been conducted (Rossi et al , 2012; Rossi, 2014), but the scientific community has only recently begun to examine the financing decisions of SMEs. Due to the limited resources available to small businesses, their behaviour regarding financing decisions is critical (Yazdanfar and Öhman, 2015; Nzibonera and Waggumbulizi, 2020).…”

Section: Hypotheses Developmentmentioning

confidence: 99%

“…Furthermore, whereas many empirical research on the financing decisions of large and publicly traded companies are available (Rossi et al , 2012; Rossi, 2014), the scientific community has only just begun to investigate the financing decisions of small businesses. Additionally, previous studies (Yazdanfar and Öhman, 2015; Baker et al , 2017; Nzibonera and Waggumbulizi, 2020) on the funding choices of small businesses often seek to explain the issue with regard to business characteristics – company size, age, asset structure and profitability among others – without taking into account one of the important aspects of small business, which is good corporate governance.…”

Section: Introductionmentioning

confidence: 99%

See 1 more Smart Citation

The effect of small business financing decision on business performance in Ghana: the moderated mediation role of corporate governance system

Tetteh

Kwarteng

Gyamera

et al. 2022

IJOES

View full text Add to dashboard Cite

Purpose The paper aims to investigate the role of corporate governance in the relationship between small businesses financing choice decisions on the business performance. Design/methodology/approach The paper was situated within the financial growth cycle theory and stewardship theory and survey approach was adopted for data collection. The statistical analysis was conducted by using partial least square structural equation modelling. Findings The results indicate that the interaction of corporate governance and financing choice decisions strengthens the performance relationship. Further, corporate governance mediates the positive relationship between financing choice decisions and performance. Thus, suggesting that corporate governance can carry the effect of the financing choice decisions to business performance. Practical implications The findings of our research reveal that, small businesses who follow solid corporate governance procedures should expect higher business performance. This is because financing decisions alone will not assure positive business performance unless they are tied to a broader perspective of effective corporate governance practices. Originality/value To the best of the authors’ knowledge, this is the first study that contributes to the small business financing choice and performance literature by combining the strengths of financial growth cycle theory and stewardship theory to explain the financing choice decisions and, in particular, the role of corporate governance in the relationship. Further, the study is unique in its nature because it presents a successful model for small businesses in emerging economies to concentrate more on the role of corporate governance in enhancing business performance.

show abstract

Section: Hypotheses Developmentmentioning

confidence: 99%

Section: Introductionmentioning

confidence: 99%

The effect of small business financing decision on business performance in Ghana: the moderated mediation role of corporate governance system

Tetteh

Kwarteng

Gyamera

et al. 2022

IJOES

View full text Add to dashboard Cite

show abstract

“…The European Central Bank (2017) further indicates that in a bid to avoid tax, small business do not keep adequate records to enable them access formal financing provided by traditional banking institutions. In a related context, Nzibonera and Waggumulizi (2020) established that secured loans for financing working capital have a significant positive relationship with the growth of small scale businesses, but do not indicate the status of lending institutions in terms of size. In addition, the study focused on business growth, while it paid no attention to environmental sustainability (planet).…”

Section: Literaturementioning

confidence: 99%

Financing Options and Sustainable Small Business Growth in Uganda: An Optimal Model

Nuwagaba¹,

Nyende²,

Namanya³

2021

IBR

View full text Add to dashboard Cite

Small businesses in Uganda continue to lag behind trends in terms of sales turnover profitability, employee growth, while others rarely live to celebrate their first birthday due to various constraints of which financing is at the forefront. This study set out to determine the relationship between various financing options and sustainable small business growth so as to suggest an optimal financing model to ensure sustainable small businesses. The study adopted a cross-sectional descriptive survey design to analyse a sample of 399 small businesses which were selected using stratified random sampling from Kampala Metropolitan Area. Data were collected using a researcher administered structured questionnaire and analysed using descriptive statistics. The relationship between the variables was determined using Spearman’s rank correlation coefficeint. The study established that there is a weak positive significant correlation between traditional debt finance and sustainable small business growth, a strong positive significant correlation between asset-based finance and sustainable small business growth, and a strong positive significant correlation between crowdfunding and sustainable small business growth. The study further established that there is a moderate positive significant relationship between equity finance and sustainable small business growth. The study concluded that improving on the available financing options would improve on the sustainable small business growth. It is recommended that the ideal model for financing small businesses should be the integration of the financing options, but giving priority to; asset based lending, crowdfunding, equity finance and lastly traditional debt finance.

show abstract

Entrepreneurial financial literacy - small business sustainability nexus in Ethiopia

Meressa

2023

Cogent Business & Management

View full text Add to dashboard Cite

Loans and growth of small-scale enterprises in Uganda: A case study of Kampala Central business area

Cited by 3 publications

References 9 publications

The effect of small business financing decision on business performance in Ghana: the moderated mediation role of corporate governance system

The effect of small business financing decision on business performance in Ghana: the moderated mediation role of corporate governance system

Financing Options and Sustainable Small Business Growth in Uganda: An Optimal Model

Entrepreneurial financial literacy - small business sustainability nexus in Ethiopia

Contact Info

Product

Resources

About