The Impact of Microfinance Service Delivery on the Growth of SME's in Uganda

"This policy brief examines the impact of microfinance service delivery on the growth of small and medium-sized enterprises (SMEs) in Eastern Uganda. The objectives of the study were as follows: Establish whether MFIs service delivery lead to growth of business capital and stock accumulation; determine the affect of growth of employment of the business; influence of socioeconomic characteristics on the growth of SMEs; and realize the constraining factors to accessing Microfinance Institutions (MFIs) services by SMEs. The study used a cross-sectional design combining both quantitative and qualitative data analytical methods. The multiple regressions and the Logit model were used in the process of estimating impact of MFIs on the growth of SMEs. The findings indicate that although the MFIs have performed below the average expectations due to some industry-wide challenges, they have had an impact in linking SMEs and the poor to sources of credit."