Microfinance Loans and Performance of Small and Medium Size Enterprises in Lira City, Northern Uganda

Abstract

The study examined microfinanc e loans and the performance of small and medium size enterprises (SMEs) in Lira City. Data was collected using questionnaires and interviews and the design used was causal research designs using qualitative and quantitative approaches. The results showed t hat there was low Level of loan accessibility and performance by the SMEs. The study concludes that Microfinance loans contribute to performance of SMEs. Microfinance Institutions should increase provisions of non financial services, revise policies on loa n period and increase amount of loan given to SMEs to enhance entrepreneurial capability, savings and insurance so as to improve on their performance.