“Barriers to financial access and their impact on the growth of women-led small and medium enterprises (SMES) in Uganda Kampala district" a case study of Kawempe division, Kampala.

Abstract

This purpose of the study aims to examine the barriers to financial access and their impacts on the growth of women-led enterprises in Kawempe Division, Uganda. Despite the increasing recognition of women's entrepreneurial contributions, financial exclusion remains a significant challenge, hindering the potential for growth and sustainability of these enterprises. The research employed a mixed-methods approach, combining qualitative and quantitative data collection methods. Structured questionnaires were administered to 90 women entrepreneurs in Kawempe, complemented by in-depth interviews with 15 key participants, including financial institution representatives and community leaders. These included both closed and open-ended questions, allowing participants to express their experiences and insights in their own words. The data collected provided quantitative insights into the prevalence of various barriers, while qualitative responses enriched the understanding of the contextual factors influencing financial access. This comprehensive approach facilitated a nuanced analysis of the intersection between gender, entrepreneurship, and financial services in the region. The findings revealed several key barriers to financial access, including limited financial literacy, lack of collateral, high-interest rates, and discriminatory lending practices. These barriers significantly impede the growth of women-led enterprises, resulting in reduced investment opportunities, limited business expansion, and lower profitability. Additionally, the study highlighted the broader socio-economic implications of these barriers, including the perpetuation of poverty and gender inequality within the community. Based on these findings, the study recommends targeted financial literacy programs to empower women entrepreneurs, the establishment of more inclusive lending practices by financial institutions, and the promotion of supportive policies from local government to foster an enabling environment for women-led enterprises. By addressing these barriers, stakeholders can facilitate greater financial access and contribute to the sustainable growth of women-led businesses in Kawempe and beyond.