TABLE OF CONTENTS
DECLARATION.i
APPROVAL ii
DEDICATION iii
ACKNOWLEDGEMENT iv
TABLE OF CONTENTS v
LIST OF TABLES viii
LIST OF FIGURES ix
LIST OF ABBREVIATION x
ABSTRACT xi
CHAPTER ONE 1
INTRODUCTION 1
1.0 Introduction
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 4
1.6.1 Content Scope 4
1.6.2 Time scope 5
1.6.3 Geographical scope 5
1.7 Significance of the study 5
1.8 Conceptual Framework 6
CHAPTER TWO 7
LITERATURE REVIEW 7
2.0 Introduction 7
2.1 Meaning and scope of small —scale enterprises 7
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2.2 The formal sector .8
2.2.1 Small scale and medium enterprises and their contributions 8
2.2.2 Small scale and medium enterprises and education 9
2.2.3 Small scale and medium enterprises and factors affecting their activities 9
2.3 The employment creation problem 10
CHAPTER THREE 15
METHODOLOGY 15
3.0 Introduction 15
3.2 Research design 15
3.3 Survey population 15
3.4 Sampling design 15
3.5Samplesize 16
3.6 Sampling Procedures 16
3.7 Data sources 16
3.7.1 Data collection methods 16
3.7.2 Data Processing and analysis 17
3.8 Reliability and validity of research instruments 17
3.9 Limitations of the study 17
CHAPTER FOUR 18
PRESENTATION OF RESULTS, ANALYSIS AND DISCUSSION 18
4.0 Introduction 18
4.1 Background characteristics of the respondents 18
4.1.1 Age of the respondents 18
4.1.2 Sex of the respondents 19
4.1.3 Marital status of the respondents 19
4.1.4 Education level of the respondents 20
4.1.5 Income per month of respondents 21
4.1.6 Occupation of the respondents 22
4.2 Small scale enterprises in Kansanga Trading Centre 23
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4.2.1 Factors for establishment small —scale enterprises in Kansanga trading centre 24
4.2.2 Categories of people involved in the small —scale enterprises Kansanga trading centre. 24
4.3 Challenges encountered by small-scale and medium enterprises on employment creation in
Kansanga trading center 25
4.3.1 Employment creation problem in Kansanga trading centre 26
4.3.2 Causes of unemployment 27
4.3.3 The impact of unemployment on the creation of small and medium enterprises 28
CHAPTER FIVE 29
SUMMARY, CONCLUSION & RECOMMENDATIONS 29
5.0 Introduction 29
5.1 Conclusions 29
5.1.1 Relationship between small scale enterprises and employment creation 29
5.1.2 Relationship between education and employment 29
5.1.3 Vital factors affecting micro enterprises 30
5.2 Recommendations 30
5.2.1 The need to implement the MSMES policy 30
5.2.2 Relevant education and training 30
5.2.3 Necessary factors affecting micro enterprises 31
5.2.4 Other recommendations 31
5.5 Areas of further study 31
REFERENCES 32
APPENDICES 35
APPENDIX 1: QUESTIONNAIRE 35
ABSTRACT The study is sought about the impact of small scale and medium enterprises on employment creation in Kansanga trading Centre. The objectives of the study was to establish the relationship between small scale enterprises and employment creation in Kansanga 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 Kansanga trading Centre. A descriptive design and exploratory design was 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 also analyzed using frequencies where percentages were derived for easy interpretation, and statistical package for scientific research which 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. From the conclusion based on the findings of the study, it can be concluded that majority of the respondents were aged (34 — 43) years, more men were engaged in micro enterprises compared to women, and majority of persons engaged in such enterprises were married. Recommendations on the level at which small scale enterprises are performing was also to implement the SMES policy, relevant education and training, subsidizes the cost of power and to ensure that misappropriations are eliminated. Furthermore People engaging in small-scale enterprises should be encouraged to develop a habit of saving and the government should advocate for low interest loans for such people. This will enable their business expand into relatively large enterprises which in turn will create more employment to Ugandans.
