The impact of infrastructure on the financial performance of small enterprises in Pallisa district.

Abstract

This study is to establish the extent to which infrastructure affects the financial performance of SMEs in Pallisa district. Specifically, the study sought to determine the effect of firm location [proximity to the roads and proximity to power] on the financial performance of small and medium enterprises, to determine the effect of technology access in terms of internet connectivity on the financial performance of SMEs and also to establish the effect of human capacity under dimensions of labour availability and skills training on financial performance of SMEs. The study used descriptive correlation, comparative and cross-sectional survey designs. Data collected from 40 respondents using self-administered questionnaires as the key data collection instruments. Data was analysed using frequency counts, means, and SPSS. The findings revealed that there was a relationship between firm location, technology access and human capacity on the financial performance of small enterprises in pallisa district. The infrastructure development brings about effective, efficiency operations of the business which leads to high profit margins due to high sales. Recommendations based on the findings were that SMEs should embrace the use of technology in order to ensure quality, market expansion and to achieve high sales targets, owners of small enterprises should also focus on employee training programmes in order to improve on their skills, on the same not business owners should always consider strategically located places to allow easy accessibility by customers and lastly central and local governments should focus on improving the road networks within pallisa district to allow easy movements of materials, goods to the business and to the market respectively in order to boost on the financial performance of small enterprises allowing their survival in the system.