EXECUTIVE SUMMARY/ABSTRACT This thesis entitled “The effect of customer care on small business growth” is presented as a result of a research that was carried out in Smile Telecom Company limited at their head office in Kampala. The study was based on three specific objectives, i.e.; to examine the various customer care initiatives used in Smile Telecom limited, to establish the impact of effective customer care on business growth in Smile Telecom limited, and to identify the challenges of trying to ensure effective customer care practices in Smile Telecom Limited. The study took form of a case study design, with a study population constituted of sales and advertising managers, field distribution managers, customer care attendants and others. A study sample of 60 respondents was chosen, using simple random sampling method. Questionnaires and interviews were used in collecting both primary and secondary data. The collected data was analyzed using both qualitative and quantitative methods. The study findings indicate that there are various customer care initiatives, and that these customer care practices have a significant positive impact on small business growth. Findings also show that there are various challenges faced in trying to ensure effective customer care mechanisms in small businesses. There are many customer care initiatives which, if well implemented, they can lead to growth in these small businesses, though there are some challenges faced in trying to maintain effective customer care. He also recommended that there be emphasis on training, further exploration of new practices in customer care and more investment in training and knowledge acquisition in the field of customer service.