Abstract:
The study investigated “The effect of Access to Finance on Organization Performance of selected small and medium enterprises in Butebo district, Research objectives were to examine the effect of savings on the performance of selected small and medium enterprises, to examine the effect of bank loans of performance of selected small and medium enterprises and to examine the effect of equity finance on the performance of selected small and medium enterprises in Butebo district. The study employed a research design where quantitative analysis was used. The study considered a population of 100 respondents out of which a sample of 80 respondents was selected in an area of study, key respondents included; SMEs Managers. It was found out that the savings has enabled SMEs managers to increase profits, increase the level of stock, increase and raise financial reserves which has ploughed back turn over in business. On examining the effect of bank loans, it noted that Bank loans have helped SMEs managers to grow their financial level, increase the stock in their shop, enabled them to become financially disciplined and has helped them improve their business performance. As for equity finance, it has helped SMEs managers to increase returns, it is a source of funding for SMEs business, encounters less risks and retains earnings. It was observed that equity finance plays an instrumental role in ensuring that businesses are active and performing to raise returns and sales. It is therefore concluded that savings, bank loans and equity finance significant play a tremendous role in ensuring increase in sales, increase in returns, increase in profit if well handled. It is however recommended that there is need for SMEs managers in Butebo district to improve on their culture of savings to grow their businesses and raise greater profits and sales in their business, there is further need for business managers to consider training of their staff to ensure there is performance of quality based services to increase on the number of customers to raise sales, further Banks operators need to always consider lower and smaller interest rates for small businesses to help in enabling a better environment for better performance.
