Financing Small and Medium-Scale Enterprises (SMEs)
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Date
2003
Authors
Journal Title
Journal ISSN
Volume Title
Publisher
Bank of Uganda research department
Abstract
This paper investigates the economic rationale for intervention in support of Small and
Medium Scale Enterprises (SMEs) on both theoretical and empirical grounds. It argues that
the inherent weaknesses of SMEs in Uganda deny them access to financial services. It
further argues that the justification for their support lies in market and institutional failures
rather than any inherent economic benefits. Specifically, the reasons given for supporting
SMEs are basically to increase their access to financial markets and other services; and to
reduce policy induced bias against them. The Uganda government and other institutions
have made significant strides to accelerate the development of markets for financial and
non-financial services suited to SMEs by promoting innovation in products and delivery
mechanism and by building institutional capacity. However, even with this support, the
SMEs have to so more, themselves, to overcome some of the challenges they face.
Description
Keywords
Financial services, Market failures, Institutional support, Macroeconomic stability
Citation
Small, F., Enterprises, M. S., Kasekende, L., & Opondo, H. (2003). B ankof U ganda.