TABLE OF CONTENTS
DECLARATION ............................................................................................................................. !
APPROVAL ................................................................................................................................... II
DEDICATION ............................................................. : ................................................................ III
ACKNOWLEDGEMENT ............................................................................................................ IV
TABLE OF CONTENTS ............................................................................................................... V
LIST OF TABLES ........................................................................................................................ IX
LIST OF FIGURES ....................................................................................................................... X
DEFINITION OF CONCEPTS .................................................................................................... XI
LIST OF ABBREVIATION ........................................................................................................ XII
ABSTRACT ............................................................................................................................... XIII
CHAPTER ONE ........................................................ : .................................................................. 1
1.0 Introduction ............................................................................................................................. 1
1.1 Background of the study ......................................................................................................... 1
1.2 Problem statement ................................................................................................................... 3
1.3 Purpose of the study ................................................................................................................ 4
1.4 Objectives of the study ............................................................................................................ 4
1.5 Research questions .................................................................................................................. 4
1.6 Scope of the study ................................................................................................................... 5
1.6.1 Time scope ....................................................... : .................................................................. 5
1.6.2 Geographical scope ............................................................................................................. 5
1.7 Significance ofthe study ......................................................................................................... 5
CHAPTER TWO .......................................................................................................................... 6
LITERATURE REVIEW ............................................................................................................... 6
2.0 Introduction ............................................................................................................................. 6
v
2.1 Meaning and scope of small -scale enterprises ...................................................................... 6
2.2 The formal sector .................................................................................................................... 7
2.2.1 Small scale and medium enterprises and their contributions .............................................. 7
2.2.2 Small scale and medium enterprises and education ............................................................ 8
2.2.3 Small scale and medium enterprises and factors affecting their activities ..... : ................... 9
2.3 The employment creation problem ....................................................................................... 10
CHAPTER THREE .................................................................................................................... 14
METHODOLOGY ..................................... : ................................................................................. 14
3.0 Introduction ........................................................................................................................... 14
3 .1 The research strategy ............................................................................................................ 14
3.2 Research design .................................................................................................................... 14
3 .3 Survey population ................................................................................................................. 14
3.4 Sampling design .................................................................................................................... 14
3.5 Sample size ........................................................................................................................... 14
3.6 Sampling procedures ............................................................................................................. 14
3. 7 Data sources .......................................................................................................................... 15
3.7.1 Data collection methods .................................................................................................... 15
3.7.2 Data processing and analysis ............................................................................................ 15
3. 7.3 Model specification ........................................................................................................... 16
3.8 Reliability and validity of research instruments . .................................................................. 16
3.9 Limitations of the study ...................................................................................... : ................. 16
1.9.1 Slow/non response ............................................................................................................ 16
·.9.2 Time .................................................................................................................................. 16
.9.3 Finance .............................................................................................................................. 16
VI
CHAPTER FOUR ....................................................................................................................... 17
PRESENTATION OF RESULTS, ANALYSIS AND DISCUSSION ........................................ 17
4.0 Introduction ........................................................................................................................... 17
4.1 Testing the model specification ............................................................................................ 17
4.2 Background characteristics of the respondents ..................................................................... 20
4.2.1 Age of the respondents ...................................................................................................... 20
4.2.2 Sex of the respondents ...................................................................................................... 21
4.2.3 Marital status of the respondents ...................................................................................... 21
4.2.4 Education level of the respondents ................................................................................... 22
4.2.5 Income per month of respondents ..................................................................................... 23
4.2.6 Occupation of the respondents .......................................................................................... 24
4.3 Small scale enterprises in ndeeba trading cenh·e .................................................................. 25
4.3 .1 Factors for establishment small-scale enterprises in ndeeba trading centre .................... 25
4.3.2 Categories of people involved in the small-scale enterprises in ndeeba trading centre .. 26
4.3.3 Challenges encountered by small-scale enterprises in ndeeba trading center .................. 27
4.3.4 Contribution of small-scale enterprises in the area ........................................................... 28
4.4 Employment creation problem in ndeeba trading centre ...................................................... 29
4.4.1 Causes of unemployment .................................................................................................. 30
4.4.2 The impact of unemployment ........................................................................................... 31
4.4.3 Ways through which government has tried to solve unemployment in ndeeba trading
centre. 32
CHAPTER FIVE ........................................................................................................................ 33
SUMMARY, CONCLUSION & RECOMMENDATIONS ........................................................ 33
5.0 Introduction ........................................................................................................................... 33
VII
5.1 Conclusions ........................................................................................................................... 33
5. 1.1 Relationship between small scale enterprises and employment creation ......................... 33
5.1.2 Relationship between education and employment ............................................................ 33
5.1.3 Vital factors affecting micro enterprises ........................................................................... 34
5.2 Recommendations ................................................................................................................. 34
5.2.1 The need to implement the msmes policy ......................................................................... 34
5.2.2 Relevant education and training ........................................................................................ 34
5.2.3 Necessary factors affecting micro enterprises .................................................................. 35
5.2.4 Other recommendations .................................................................................................... 35
REFERENCES ............................................................................................................................. 36
APPENDIX 1 ................................................................................................................................ 38
QUESTIONNAIRE ...................................................................................................................... 38
APPENDIX 2 ................................................................................................................................ 44
ESTIMATED BUDGET ............................................................................................................... 44
APPENDIX 3 ................................................................................................................................ 45
TIME FRAME .............................................................................................................................. 45
ABSTRACT The study was about the impact of small scale and medium enterprises on employment creation in Ndeeba trading centre. The objectives of the study were to establish the relationship between small scale enterprises and employment creation in Ndeeba trading centre, to examine ways through which small scale enterprises are solving unemployment in the area and to assess the factors for establishment of small and scale enterprises in Ndeeba trading centre. A descriptive design and exploratory design were used depending on the characteristics of the study. A sample of 30 respondents was used, data was collected using questionnaire directed to the owners of small scale enterprises in the area. Data was analyzed using frequencies where percentages were derived for easy interpretation, and statistical package for scientific research was used to investigate the relationship between small scale enterprises and employment creation. Findings on employment creation by small scale and medium enterprises, the study found out micro enterprise to reasonable extent fair in creating employment to Ugandans. This was indicated by a strong positive relationship between two variables as indicated by pearson correlation coefficient of determination. Recommendations on the level at which small scale enterprises are perfonning were, to implement the MSMES policy, relevant education and training, subsidizes the cost of power and to ensure that misappropriations are eliminated.
