Social Capital, Financial Literacy and Access to Finance for Small and Medium Enterprises in Uganda: A Case of Bweyogerere.
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Date
2024-11-26
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Makerere University Business School
Abstract
The research in case was carried out to shed light on the relationship between social capital, financial literacy and access to finance for MSMEs. It was characterized by objectives which were; to investigate the relationship between social capital and access to finance for MSMEs, to analyze the relationship between financial literacy and access to finance for MSMEs, to examine the relationship between social capital and financial literacy for MSMEs as well as to assess the relationship between social capital, financial literacy and access to finance for MSMEs. A descriptive cross sectional survey and quantitative research approach were adopted by the study. These enabled the researcher in acquiring information from the respondents in regards to the research study as well as establishing the relationship between social capital, financial literacy and access to finance for MSMEs in Bweyogerere respectively. With the help of the Krejcie and Morgan table (1970), a sample size of 317 was used from a total population of 1800 MSMEs specifically retail and whole sale in Bweyogerere division. Questionnaires were used in data collection and up to 259 respondents were able to give feedback to the researcher. The data was analyzed using the SPSS software version 24. There was a positive relationship between social capital and access to finance which showed a correlation of (r = 0.248) with a p-value (0.000) less than 0.05. The relationship between financial literacy and access to finance was found to be positively significant with (r = 0.268) and a p-value (0.000) less than 0.05. Whereas the findings from social capital and financial literacy indicated (r = 0.404) and p-value of 0.000 showing a positive association between the two variables. Lastly the results showed that both social capital and financial literacy jointly influence access to finance with significance levels of 0.011 and 0.002 respectively. The paper recommended for MSMEs’ owners and managers to encourage social capital through social networks built on trust, shared understanding, norms and values among the employees and to also adopt MSMEs practices which will enable them to improve their financial skills, awareness and knowledge which are key to solving financial issues and easy access to finance from different finance providers.
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This is a master's thesis.
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Citation
Juan, C. T. (2024) Social Capital, Financial Literacy and Access to Finance for Small and Medium Enterprises in Uganda: A Case of Bweyogerere. (Unpublished master’s dissertation). Makerere University Business School, Kampala, Uganda.