Browsing by Author "Ayo, Doreen"

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    Access to Credit Finance, Entrepreneurial Competency and Financial Performance of Small and Medium Enterprises in Arua City.
    (2023) Ayo, Doreen
    The purpose of the study was to determine the predictive power of access to credit finance and entrepreneurial competence on the financial performance of SMEs in Arua city. The researcher used quantitative, descriptive, and cross-sectional research design. A sample size of 140 SMEs was selected out of 220 SMEs in Arua city as guided by Krejcie and Morgan (1970) sample size determination table. Validity and reliability of the instruments showed that all variables under study were reliable with Cronbach’s alpha statistic for all the variables measuring above 0.70- Nunnally, (1978). The researcher issued 280 questionnaires and received 218 questionnaires giving a response rate of 77.9%. The findings of the correlation analysis showed a significant positive association between access to credit finance and financial performance. It also indicated a positive relationship between entrepreneurial competency and financial performance of SMEs in Arua city implying that the level of access to credit finance and entrepreneurial competency is associated directly with financial performance of SMEs. The regression analysis showed that access to credit finance predicts financial performance by 62.6% while entrepreneurial competency predicts financial performance by 6.5%. The researcher concludes that access to credit finance is an important predictor of financial performance of SMEs in Arua city. The researcher recommends that; for SMEs to be successful, good access to credit finance and entrepreneurial competency are key.