Faculty of Commerce

Relational capital, access to finance and business growth of women-owned bakeries in Kampala-Uganda

Fri, 03 Sep 2021 00:00:00 GMT

Relational capital, access to finance and business growth of women-owned bakeries in Kampala-Uganda Zawadi, Alice Peter Empirical evidence has shown that relational capital and access to finance are major determinants of business growth. However, little is known about the effect of such variables on business growth of women owned enterprises in Uganda. This study attempts to fill this gap. Using primary data collected from a sample of 108 selected licensed women owned bakeries situated in Kampala, Uganda, the relationship between relational capital and business growth of women owned bakeries was studied. In addition, the effect of access to finance on business growth of the women owned bakeries was also investigated. Furthermore, the study also explored the mediating effect of access to finance in the relationship between relational capital and business growth of women owned bakeries. The study used the ordinary least squares model estimation technique to achieve the research objectives. The findings indicated that relational capital through its measures of customer capital, supplier capital, and employee capital positively and significantly affect business growth. Specifically, and increase in customer relational capital increases business growth by 31 percent while an increase in supplier and employee relational capital increases business growth by 30 percent and 24 percent respectively. Regarding access to finance, the results revealed a negative and statistically significant relationship between cost of financing and business growth. The results indicate that an increase in the cost of finance reduces business growth by 27 percent. On the contrary, results indicated a positive and statistically significant relationship between the source of capital and business growth. An increase in the sources of capital by one unit increases business growth by 18 percent. Similarly, there is a positive and statistically significant relationship between possession of collateral requirement and business growth. An increase in collateral requirement owned by women in business increases business growth by 24 percent. The findings show no mediating role of access to finance in the relationship between relational capital and business growth. Overall, the findings suggest that women in business ought to implement strategies or measures geared towards improving relational capital while emphasizing the role of customer, supplier and employee relational capital. This implies that business relational capital in comparison to social relational capital is what matters most for women owned business growth. In reference to access to finance, the results imply that the cost of financing, collateral requirement and source of capital are key to growth of women owned businesses. These findings imply women should consider soliciting funds from cheaper sources if their businesses are to grow. Future studies may consider examining how relational capital and access to finance affects the survival of women owned businesses in Uganda. A dissertation submitted to faculty of graduate studies and research in partial fulfillment of the requirements for the award of the Degree of master of science in accounting and finance of Makerere University

Innovation, Export Commitment and performance of Coffee Producers, Processors and Exporting Firms in Uganda

Sun, 01 Jan 2017 00:00:00 GMT

Innovation, Export Commitment and performance of Coffee Producers, Processors and Exporting Firms in Uganda Shafie, Abdirashid Ali This study was carried out to examine the relationship between innovation, export commitment and export performance of Coffee producers, processors and exporting firms in Uganda. Specifically, it sought to establish how innovation and export commitment relate with export performance Coffee producers, processors and exporting firms in Uganda. The study adopted a correlational research design to establish the relationship between dependent and independent variables of the study. Data was collected from respondents by use of questionnaires. Simple random sampling techniques were used to select 36 firms out of the study population of 43 coffee exporting firms. Pearson correlations and multiple regression analysis were used to establish the relationship among the study variables. The correlations revealed that there was a statistically significant positive relationship between innovation r=.535, p-value<.005), export commitment, r=.677, p-value<.005,) and export performance of coffee export firms in Uganda. The general implication was about innovation and export commitment practices have a statistically significant positive effect on the export performance of Coffee producers, processors and export firms. In addition, multiple regression analysis was also carried out and revealed innovation is the most significant predictor to export performance of Coffee producer processing and export firms. Its relationship with export performance of coffee producer processing and exporting firms innovation explains 41.9% of variation in the export performance of coffee producer processing and exporting firms in Uganda; while the whole regression model explains 42%. Further the study was adopted mediation test so as to establish if export commitment mediates on the relationship between innovation and export performance of coffee exports in Uganda. However, result of the mediating test was revealed that export commitment was partially mediated on the relationship between innovation and export performance. The study findings were therefore recommended that managers of coffee producers, processors and exporting firms in Uganda should concentrate more on innovation and export commitment in order to enhance their export performance since two of these factors have a significant relation to good export performance. A Dissertation Submitted to the School of Graduate Studies and Research Makerere University in partial fulfillment of the requirement for the award of a Degree of Masters of International Business of Makerere University. Plan (A)

Financial service outreach correlates Managerial competence and risk-taking behaviour

Mon, 30 Mar 2015 00:00:00 GMT

Financial service outreach correlates Managerial competence and risk-taking behaviour Nkundabanyanga, Korutaro, Stephen; Opiso, Julius; Balunywa, Waswa Purpose – The purpose of this paper is to establish the relationship between managerial competence, managerial risk-taking behaviour and financial service outreach of microfinance institutions (MFIs). Design/methodology/approach – In this cross-sectional and correlational study, the authors surveyed 52 branches of MFIs from a population of 60 branches of 20 MFIs in eastern Uganda. Two respondents, a branch manager and a senior loan officer, were the units of enquiry for each branch. The authors put forward and tested four hypotheses relating to the significance of the relationship between perceived managerial competence, risk-taking behaviour and financial service outreach using SPSS version 20. The authors established the hypothesized relationships using Pearson correlation coefficients and obtain a mediating effect of risk-taking behaviour using partial corrections and regression analysis. Findings – The results suggest positive and significant relationships between perceived managerial competence, risk-taking behaviour and financial service outreach. However, while the direct relationship between managerial competence and financial service outreach without the mediation effect of risk-taking behaviour of managers was found to be significant, its magnitude reduces when mediation of risk-taking behaviour is allowed. Thus the entire effect does not only go through managerial competence but majorly also, through risk-taking behaviour of managers. Research limitations/implications – This study did not control for environmental factors such as laws and regulations. As such the model may have been under fitted. Nevertheless, the study has introduced a clearer understanding that outreach performance in MFIs rests with competent managers in strategic positions operating in synergy with their risk-taking behaviour. The study informs policy makers that outreach performance of the MFIs depends on the quality of the competence managers have in addition to their risk-taking propensities. Practical implications – Efforts by the stakeholders to improve financial service outreach must be matched with appropriate competences and risk-taking behaviour of managers. Originality/value – The results contribute to extant literature by investigating two explanatory variables for financial service outreach and provide initial evidence of the mediating effect of intrinsic high risk-taking behaviour of managers. Results add to the conceptual improvement in risk-taking behaviour and lend considerable support for the behavioural perspective in the study of financial service outreach of MFIs. http://dx.doi.org/10.1108/IJSE-10-2013-0241

Internal Controls, Managerial Competence and Financial Accountability in Technical and Vocational Institutions in Uganda

Mon, 01 Oct 2018 00:00:00 GMT

Internal Controls, Managerial Competence and Financial Accountability in Technical and Vocational Institutions in Uganda Baganzi, Amin The purpose of the study was to establish the relationship between internal controls, managerial competence and financial accountability in technical and vocational institutions in Uganda. Internal control and managerial competence were the independent variables while financial accountability was the dependent variable. The study was guided by the following objectives: to examine the relationship between internal controls and financial accountability, to examine the relationship between managerial competence and financial accountability, to examine the predictive power of internal controls and managerial competence on financial accountability the study adopted a cross sectional survey design to study internal controls, managerial competence and financial accountability in technical and vocational institutions in Uganda. Primary data was collected using self-administered questionnaire issued to the respondents. The study population consisted of 128 respondents drawn from the technical and vocational institutions in Uganda. A sample of 97 was reached using Morgan and kreijcie table. Only 81 questionnaires were used for the analysis out of the 97 that were distributed to the respondents. Data was analyzed using statistical package for social scientists (SPSS) package and Pearson correlation coefficient was used to measure the strength of relationships between the variables understudy. The findings obtained revealed that there was a positive and significant relationship between internal control, managerial competence and financial accountability in technical and vocational training institutions in Uganda. A research Dissertation submitted to the School of Graduate Studies In partial fulfillment of the requirements for the award of a Degree of Master of Science in Accounting and Finance of Makerere University,Plan A