Assessing the Status of Growth of MSMEs in a Developing Country: Uganda as a Case Study

Sazir Nsubuga Mayanja

doi:doi:10.11648/j.sjbm.20200802.15

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Assessing the Status of Growth of MSMEs in a Developing Country: Uganda as a Case Study

Sazir Nsubuga Mayanja

Published in Science Journal of Business and Management (Volume 8, Issue 2)

Received: 6 January 2020 Accepted: 24 February 2020 Published: 19 May 2020

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Abstract

The study set out to assess the status of growth of MSMEs in developing countries with Uganda as the case study. A cross sectional descriptive design in which both qualitative and quantitative approaches were used to study a sample of 371 respondents who were systematically sampled from four districts of Wakiso, Mukono, Kampala and Jinja. A significant number of respondents, that is 23.2%, stated that their MSMEs have been growing. The standardized beta coefficients for the six predictor variables used in the study indicate that a firm’s capital base is the best predictor of the growth of MSMEs (0.574), followed by EPS (0.491) followed by market share (0.352), then dividends to shareholders (0.267), followed by sales (0.087) and lastly the number of employees (-.063). The growth of MSMEs has been basically retarded by the inability to borrow and mode of financing where results found ignorance of the matching principle. It is recommended that MSMEs need to adjust the mode of financing to follow the matching principle such that long-term objects are funded using funds from long-term sources while short-term projects should be financed using funds from short term sources. Conversely, funding short term liquidity needs using long-term sources of finance leads to a high degree of financing leverage in the long run, hence long run insolvency and decline of business.

Published in	Science Journal of Business and Management (Volume 8, Issue 2) This article belongs to the Special Issue Business Policy& Strategic Management
DOI	10.11648/j.sjbm.20200802.15
Page(s)	83-89
Creative Commons	This is an Open Access article, distributed under the terms of the Creative Commons Attribution 4.0 International License (http://creativecommons.org/licenses/by/4.0/), which permits unrestricted use, distribution and reproduction in any medium or format, provided the original work is properly cited.
Copyright	Copyright © The Author(s), 2020. Published by Science Publishing Group

Keywords

Growth, MSMEs, Economy, Enterprises, Employment, Liquidity, Profit, Development

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Sazir Nsubuga Mayanja. (2020). Assessing the Status of Growth of MSMEs in a Developing Country: Uganda as a Case Study. Science Journal of Business and Management, 8(2), 83-89. https://doi.org/10.11648/j.sjbm.20200802.15

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Sazir Nsubuga Mayanja. Assessing the Status of Growth of MSMEs in a Developing Country: Uganda as a Case Study. Sci. J. Bus. Manag. 2020, 8(2), 83-89. doi: 10.11648/j.sjbm.20200802.15

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AMA Style

Sazir Nsubuga Mayanja. Assessing the Status of Growth of MSMEs in a Developing Country: Uganda as a Case Study. Sci J Bus Manag. 2020;8(2):83-89. doi: 10.11648/j.sjbm.20200802.15

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@article{10.11648/j.sjbm.20200802.15,
  author = {Sazir Nsubuga Mayanja},
  title = {Assessing the Status of Growth of MSMEs in a Developing Country: Uganda as a Case Study},
  journal = {Science Journal of Business and Management},
  volume = {8},
  number = {2},
  pages = {83-89},
  doi = {10.11648/j.sjbm.20200802.15},
  url = {https://doi.org/10.11648/j.sjbm.20200802.15},
  eprint = {https://article.sciencepublishinggroup.com/pdf/10.11648.j.sjbm.20200802.15},
  abstract = {The study set out to assess the status of growth of MSMEs in developing countries with Uganda as the case study. A cross sectional descriptive design in which both qualitative and quantitative approaches were used to study a sample of 371 respondents who were systematically sampled from four districts of Wakiso, Mukono, Kampala and Jinja. A significant number of respondents, that is 23.2%, stated that their MSMEs have been growing. The standardized beta coefficients for the six predictor variables used in the study indicate that a firm’s capital base is the best predictor of the growth of MSMEs (0.574), followed by EPS (0.491) followed by market share (0.352), then dividends to shareholders (0.267), followed by sales (0.087) and lastly the number of employees (-.063). The growth of MSMEs has been basically retarded by the inability to borrow and mode of financing where results found ignorance of the matching principle. It is recommended that MSMEs need to adjust the mode of financing to follow the matching principle such that long-term objects are funded using funds from long-term sources while short-term projects should be financed using funds from short term sources. Conversely, funding short term liquidity needs using long-term sources of finance leads to a high degree of financing leverage in the long run, hence long run insolvency and decline of business.},
 year = {2020}
}

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TY  - JOUR
T1  - Assessing the Status of Growth of MSMEs in a Developing Country: Uganda as a Case Study
AU  - Sazir Nsubuga Mayanja
Y1  - 2020/05/19
PY  - 2020
N1  - https://doi.org/10.11648/j.sjbm.20200802.15
DO  - 10.11648/j.sjbm.20200802.15
T2  - Science Journal of Business and Management
JF  - Science Journal of Business and Management
JO  - Science Journal of Business and Management
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PB  - Science Publishing Group
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AB  - The study set out to assess the status of growth of MSMEs in developing countries with Uganda as the case study. A cross sectional descriptive design in which both qualitative and quantitative approaches were used to study a sample of 371 respondents who were systematically sampled from four districts of Wakiso, Mukono, Kampala and Jinja. A significant number of respondents, that is 23.2%, stated that their MSMEs have been growing. The standardized beta coefficients for the six predictor variables used in the study indicate that a firm’s capital base is the best predictor of the growth of MSMEs (0.574), followed by EPS (0.491) followed by market share (0.352), then dividends to shareholders (0.267), followed by sales (0.087) and lastly the number of employees (-.063). The growth of MSMEs has been basically retarded by the inability to borrow and mode of financing where results found ignorance of the matching principle. It is recommended that MSMEs need to adjust the mode of financing to follow the matching principle such that long-term objects are funded using funds from long-term sources while short-term projects should be financed using funds from short term sources. Conversely, funding short term liquidity needs using long-term sources of finance leads to a high degree of financing leverage in the long run, hence long run insolvency and decline of business.
VL  - 8
IS  - 2
ER  -

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Author Information

Sazir Nsubuga Mayanja

School of Post Graduate Studies, University of Kigali, Kigali, Rwanda

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APA Style

Sazir Nsubuga Mayanja. (2020). Assessing the Status of Growth of MSMEs in a Developing Country: Uganda as a Case Study. Science Journal of Business and Management, 8(2), 83-89. https://doi.org/10.11648/j.sjbm.20200802.15

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ACS Style

Sazir Nsubuga Mayanja. Assessing the Status of Growth of MSMEs in a Developing Country: Uganda as a Case Study. Sci. J. Bus. Manag. 2020, 8(2), 83-89. doi: 10.11648/j.sjbm.20200802.15

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AMA Style

Sazir Nsubuga Mayanja. Assessing the Status of Growth of MSMEs in a Developing Country: Uganda as a Case Study. Sci J Bus Manag. 2020;8(2):83-89. doi: 10.11648/j.sjbm.20200802.15

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@article{10.11648/j.sjbm.20200802.15,
  author = {Sazir Nsubuga Mayanja},
  title = {Assessing the Status of Growth of MSMEs in a Developing Country: Uganda as a Case Study},
  journal = {Science Journal of Business and Management},
  volume = {8},
  number = {2},
  pages = {83-89},
  doi = {10.11648/j.sjbm.20200802.15},
  url = {https://doi.org/10.11648/j.sjbm.20200802.15},
  eprint = {https://article.sciencepublishinggroup.com/pdf/10.11648.j.sjbm.20200802.15},
  abstract = {The study set out to assess the status of growth of MSMEs in developing countries with Uganda as the case study. A cross sectional descriptive design in which both qualitative and quantitative approaches were used to study a sample of 371 respondents who were systematically sampled from four districts of Wakiso, Mukono, Kampala and Jinja. A significant number of respondents, that is 23.2%, stated that their MSMEs have been growing. The standardized beta coefficients for the six predictor variables used in the study indicate that a firm’s capital base is the best predictor of the growth of MSMEs (0.574), followed by EPS (0.491) followed by market share (0.352), then dividends to shareholders (0.267), followed by sales (0.087) and lastly the number of employees (-.063). The growth of MSMEs has been basically retarded by the inability to borrow and mode of financing where results found ignorance of the matching principle. It is recommended that MSMEs need to adjust the mode of financing to follow the matching principle such that long-term objects are funded using funds from long-term sources while short-term projects should be financed using funds from short term sources. Conversely, funding short term liquidity needs using long-term sources of finance leads to a high degree of financing leverage in the long run, hence long run insolvency and decline of business.},
 year = {2020}
}

Copy | Download

TY  - JOUR
T1  - Assessing the Status of Growth of MSMEs in a Developing Country: Uganda as a Case Study
AU  - Sazir Nsubuga Mayanja
Y1  - 2020/05/19
PY  - 2020
N1  - https://doi.org/10.11648/j.sjbm.20200802.15
DO  - 10.11648/j.sjbm.20200802.15
T2  - Science Journal of Business and Management
JF  - Science Journal of Business and Management
JO  - Science Journal of Business and Management
SP  - 83
EP  - 89
PB  - Science Publishing Group
SN  - 2331-0634
UR  - https://doi.org/10.11648/j.sjbm.20200802.15
AB  - The study set out to assess the status of growth of MSMEs in developing countries with Uganda as the case study. A cross sectional descriptive design in which both qualitative and quantitative approaches were used to study a sample of 371 respondents who were systematically sampled from four districts of Wakiso, Mukono, Kampala and Jinja. A significant number of respondents, that is 23.2%, stated that their MSMEs have been growing. The standardized beta coefficients for the six predictor variables used in the study indicate that a firm’s capital base is the best predictor of the growth of MSMEs (0.574), followed by EPS (0.491) followed by market share (0.352), then dividends to shareholders (0.267), followed by sales (0.087) and lastly the number of employees (-.063). The growth of MSMEs has been basically retarded by the inability to borrow and mode of financing where results found ignorance of the matching principle. It is recommended that MSMEs need to adjust the mode of financing to follow the matching principle such that long-term objects are funded using funds from long-term sources while short-term projects should be financed using funds from short term sources. Conversely, funding short term liquidity needs using long-term sources of finance leads to a high degree of financing leverage in the long run, hence long run insolvency and decline of business.
VL  - 8
IS  - 2
ER  -

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