TABLE OF CONTENTS
DECLARATION
APPROVAL ii
DEDICATION
ACKNOWLEDGEMENT iv
TABLE OF CONTENTS v
LIST OF TABLES ~iii
ABSTRACT ix
CHAPTER ONE 1
INTRODUCTION 1
1.0 Introduction 1
1.1 Background of the Study
1.2 Statement of the Problem 2
1.3 Objective of the Study 3
1.4 Specific Objectives 3
1.5 Research Questions 3
1.6 Scope of the Study 3
1.6.1 Content Scope 3
1.6.2 Geographical Scope 3
1.6.3 Time Scope 3
1.7 Significance of the Study 4
CHAPTER TWO 5
REVIEW OF RELATED LITERATURE 5
2.0 Introduction 5
2.1 Related theoretical framework 5
2.1.1 The Expectations theory of Interest Rate 5
2.1.2 Keynes Theory of Interest rate
2,3 The effect of interest rates on business performance 6
2.2 The effect of interest rates on the loan acquisition by businesses 9
2.3 The relationship between the level of interest rates and business performance 12
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CHAPTER THREE .15
~‘IETHODOLOGY 15
3.0 Introduction 15
3.1 Research Design 15
3.2 Population of the study is
3.3 Sampling Design 15
3.3.1 Sample size and Determination 15
3.4 Data Source i (
3.4.1 Primary Data 16
3.4.2 Secondary Data 16
3.5 Data Collection Methods 16
3.5.1 Interview Guide 16
3.5.2 Questionnaires 17
3.6 Research Instruments 17
3.6.1 Questionnaires 17
3.6.2 Interview guide 17
3.7 Data Quality control 17
3.7.1 Validity of the Instrument 17
3.7.2 Reliability of the Instrument 18
3.8 Research Procedure 18
3.9 Data analysis, Interpretation and Presentation 19
3.9.1 Qualitative Data analysis 19
3.9.2 Quantitative Data analysis 19
3.10 Ethical Consideration 19
3.11 Limitations and Delimitations to the Study I o
CHAPTER FOUR 21
PRESENTATION, INTEPRETATION AND DISCUSSION OF THE FINDINGS 21
4.0 Introduction 21
4.1 Response Rate 21
4.1 Bio Data characteristics of respondents 21
4.1.1 Age of the Respondent 21
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4.1.2 Gender of the respondent 22
4.1.3 Education level of the respondent 23
4.1.4 The respondents marital Status 23
4.1.5 The Respondents Department 24
4.1.6 Period the respondent has spent working in the hospital 24
4.2 The effect of interest rates on business performance 26
4.3 The effect of interest rates on the loan acquisition by businesses 27
4.4 The relationship between the level of interest rates and business performance 28
CHAPTER FIVE 29
~UMAMRY, DISCUSSION, CONCLUSSIONS AND RECOMMENDATIONS 29
5.0 Introduction 29
5.1 Summary of Findings 29
5.1.1 The effect of interest rates on business performance 29
5.1.2 The effect of interest rates on the loan acquisition by businesses 29
5.1.3 The relationship between the level of interest rates and business performance 30
5.2 Discussion of the findings 30
5.2.1 The effect of interest rates on business performance 30
5.2.2 The effect of interest rates on business performance 31
5.2.3 The relationship between the level of interest rates and business performance 32
5.3 Conclusion 32
5.4 Recommendations 33
REFERENCES 34
APPENDICES 36
APPENDIX I: QUESTIONNAIRE 36
ABSTRACT The purpose of this study was to examine the effects of Interest rates on the performance of Afro Plast Company Luzira, The objectives of the study were to evaluate the effect of interest rates on business performance, to analyze the effect of interest rates on the loan acquisition by businesses and to examine the relationship between the level of interest rates and business performance. The study used both primary and secondary data in its analysis and the researcher used descriptive nodes of analysis using mainly quantitative and qualitative methods to capture data. The study 5ndings on the effect of interest rates on business performance revealed that 40% strongly ~greed, 38% agreed, 10% were neutral , 4% disagreed while the remaining 8% strongly disagreed with the statement that nearly every small business has outstanding loans, and when interest rates rise, those loans become more expensive, similarly 38% strongly agreed , 36% ~greed, 6% were neutral, 10% disagreed and 10% strongly disagreed with the statement that Alien interest rates rise, consumers with debts are going to have to pay more interest to lenders. [this typically has a negative effect on their spending habits because the more money they have o pay to keep their loans current. Similarly the findings on the effect of interest rates on the loan acquisition by businesses revealed that the coefficient (0.00 1) from the chi-square table implied that since the P-value (0.001) is less than 0.05 the confidence level we reject the null hypothesis nd conclude with the alternative that there is a significant effect of interest rate on the Acquisition of loans. The implication here is that when the interest rate increases, many people vill not obtain loans from financial institutions to expand their businesses hence affecting the performance and expansion of these businesses. The study recommends that the central bank should use the necessary tools to control the level of the interest rates since it affects the erformance of the small scale businesses and the Government should provide finances in terms f loans to the entrepreneurs of the small businesses at reduced interest rates compared to the interest rates given by the commercial bank
