managerial competencies, access to credit and business success by jamiya nakiyingi 2007/hd10 ...

79 Pages·2010·0.65 MB·English

MANAGERIAL COMPETENCIES, ACCESS TO CREDIT

AND BUSINESS SUCCESS

BY

JAMIYA NAKIYINGI

2007/HD10/11266U

A DRAFT DISSERTATION SUBMITTED IN PARTIAL
FULFILLMENT OF THE REQUIREMENT FOR THE AWARD OF
THE DEGREE OF MASTER OF SCIENCE IN ACCOUNTING AND
FINANCE OF MAKERERE UNIVERSITY

NOVEMBER, 2010
DECLARATION

I, the undersigned, Jamiya Nakiyingi declare that, to the best of my knowledge, the work
presented in this dissertation is truly my original work and has never been submitted for
the requirement of the award of a degree in this or any other university of learning.
Where work of others has been used, due acknowledgement has been made.

Signed: ………………………………

JAMIYA NAKIYINGI

Date: ………………………………..

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APPROVAL

This is to certify that this dissertation has been submitted in partial fulfillment of the
requirement for the award of a Master of Science degree in Accounting and Finance of
Makerere University with my approval as University Supervisor.

Signed: …………………… Date: …………………

DR. ARTHUR SSERWANGA
MAKERERE UNIVERSITY

Signed: ................................. Date: ………………….

DR. JOSEPH NTAYI
MAKERERE UNIVERSITY

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DEDICATION

I would like to dedicate this study to my lovely parents, Al-Hajji & Al-Hajati Lutalo and
the entire family who have supported me in every way. Your belief in me has propelled
me to heights.

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ACKNOWLEDGEMENTS

I wish to thank my supervisors, Dr. Arthur Sserwanga and Dr. Joseph Ntayi for their
support and continued guidance during this research study. My sincere gratitude goes to
the management of MUBS for the financial support you forwarded to help me
accomplish this study. MUBS, I highly commend you.

I am indebted to the owners and / or mangers of the SMEs in Kampala who accepted and
responded to the Questionnaire(s) of this survey. Finally to the Almighty ALLAH be the
glory for his faithfulness to me and without whom I would never have come this far.
I owe all of you this achievement and to you I will remain sincerely indebted.

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TABLE OF CONTENTS
Declaration………………………………………………………………………………..ii
Approval………………………………………………………………………………….iii
Dedication………………………………………………………………………………...iv
Acknowledgements...………………………………………………………………..........v
Table of Contents…………………………………………………………………………vi
List of Abbreviations……………………………………………………………………..ix
List of Tables……………………………………………………………………………...x
List of Figures...…………………………………………………………………………..xi
Abstract…………………………………………………………………………………..xii

Chapter One...................................................................................................................1
1.1 Introduction………………………………………………………………………..1
1.2 Background to the Study ...................................................................................... 1
1.3 Statement of the Problem ..................................................................................... 3
1.4 Purpose of the Study ............................................................................................ 4
1.5 Objectives of the Study ........................................................................................ 4
1.6 Research Questions .............................................................................................. 4
1.7 Scope of the Study ................................................................................................ 5
1.7.1 Subject Scope................................................................................................ 5
1.7.2 Geographical Scope ...................................................................................... 5
1.8 Significance of the Study ....................................................................................... 5
1.9 Conceptual Framework .......................................................................................... 6
1.10 Organization of the report…………………………………………………………6

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Chapter Two ……...…………………………………………………………………...7
2.1 Introduction………………………………………………………………………..7

2.1 Small and Medium size Enterprises (SMEs) ........................................................ 9
2.2 Managerial Competencies .................................................................................. 10
2.3 Credit Accessibility ........................................................................................... 14
2.4 Business Success ............................................................................................... 15
2.5 Managerial Competencies and Business Success................................................ 16
2.6 Access to Credit and Business Success .............................................................. 17
2.7 Managerial Competencies, Access to Credit and Business Success .................... 18
2.8 Conclusion......................................................................................................... 19
Chapter Three.……………………………………………………………………….20
3.1 Introduction .......................................................................................................... 20
3.2 Research Design ................................................................................................... 20
3.3 Area and Study Population ................................................................................... 20
3.4 Sample size and Sampling Procedure .................................................................... 20
3.5 Sources of Data .................................................................................................... 21
3.6 Data Collection Instruments .................................................................................. 21
3.7 Measurement of Research Variables ..................................................................... 22
3.8 Validity and Reliability of the Instruments ............................................................ 22
3.9 Data Processing and Analysis ............................................................................... 23
3.10 Limitations to the Study ........................................................................................ 24
Chapter Four….……………………………………………………………………...25
4.1 Introduction ........................................................................................................... 25
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4.2 Demographic Features ........................................................................................... 25
4.3 Rotated Component Factor Analysis ...................................................................... 28
4.4 Correlations…………………………………………………………………………33
Pearson Correlation………...…………………………………………………………….34
4.4.1 Relationship between Managerial Competencies and Business Success……….35
4.4.2 Relationship between Credit Accessibility and Business Success……………...35
4.4.3 Relationship between Managerial Competencies and Credit Accessibility…….35
4.5 Regression Analysis .............................................................................................. 38
4.6 Combined Regression Analysis ............................................................................. 39
4.7 Other Findings ....................................................................................................... 40
Chapter Five…..…………………………………………………………………...…45
5.0 Introduction ........................................................................................................... 45
5.1 Discussions…………………………………………………………………………45
5.2 Conclusion ............................................................................................................ 48
5.3 Recommendations ................................................................................................. 50
5.4 Areas for further research ...................................................................................... 51

REFERENCES…………………………………………………………………….……52

APPENDIX 1……………………………………………………………………………58
APPENDIX 2……………………………………………………………………………61

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LIST OF ABBREVIATIONS

ANOVA - Analysis of Variance

BUDs - Business Uganda Development Scheme

GEM - Global Entrepreneurship Monitor

MFPED - Ministry of Finance, Planning & Economic Development

MHRM - Masters in Human Resource Management

MUBS - Makerere University Business School

PSFU - Private Sector Foundation Uganda

SME - Small and Medium-sized Enterprises

SPSS - Statistical Package for Social Scientists

UBOS - Uganda Bureau of Statistics

UMA - Uganda Manufacturers Association

URA - Uganda Revenue Authority

USSIA - Uganda Small Scale Industries Association

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LIST OF TABLES

Table 1: Reliability Coefficients………………………………………………………..22
Table 2: Gender of respondents ................................................................................... 25
Table 3: Category of the positions held by the respondents in the SMEs ...................... 26
Table 4: Education Levels of the respondents .............................................................. 27
Table 5: Existence in the business ............................................................................... 27
Table 6: Kind of business the firm is engaged in ......................................................... 28
Table 7: Factor Analysis for managerial competencies ............................................... 29
Table 8: Pearson correlation moment .......................................................................... 35
Table 9: Regression Analysis ....................................................................................... 38
Table 10: Combined Regression Analysis..................................................................... 39
Table 11: ANOVA between Gender and the Study ...................................................... 40
Table 12: ANOVA between Legal Status and the Study .............................................. 41
Table 13: ANOVA between Education Levels and the Study....................................... 42
Table 14: ANOVA between Study Variables and Duration ……………………………43

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