CHALLENGES FACING SMALL SCALE ENTERPRISES GROWTH AS OF THE BUDGETARY PROCESS IN KATWE BUTEGO PARISH, MASAKA DISTRICT; A CROSS SECTIONAL STUDY.

Abstract

Background.

The study aimed to identify the challenges facing small-scale enterprise growth as of the budgetary process in Katwe Butego Sub County.

 Methodology

The study used several methods to collect data including questionnaires, interviews, and observation. The proposed research design was a cross-section survey based on a simple random sampling in which the sampled area represented the whole area. The study adopted quantitative methods of data collection at one point in time, analyzed, and interpreted to generate results.

 Results

Regarding the nationality of the owners of the enterprises, the majority of 90.0% were Ugandan, and 4% of the SMEs were owned by Indians. Only one respondent is of Tanzanian origin. The results show the dominance of Ugandans in business, particularly Masaka district.

The study established that lack of financial capital affected the performance of small and medium entrepreneurial initiatives. The interest rates were high to promote investment and innovations in the SME sector creation of new products in the market because of lack of capital. Besides, because most SMEs could not collateralize their enterprise, they could not easily invest in expansion.

 Conclusion

A friendly tax policy is instrumental to the survival and growth of these small and medium enterprises. Therefore, if SMEs are to flourish, an appropriate tax policy that will not be an encumbrance to SMEs and which will also encourage voluntary compliance needs to be ground.

 Recommendations

The government should come to improve production infrastructure. This should be through an increase in electricity generation to support SME initiatives and responsiveness by power generating companies in handling of electricity problems of SMEs whenever they occur. The cost of electricity should be brought down for SMEs to be able to afford it.