Project overview
Although many medium-sized firms demonstrate strong growth potential, they often struggle to secure financing due to weak financial systems, inadequate accounting records, and governance practices that do not meet the requirements of banks and investors. Implemented in partnership with IGREC Uganda and Imuka Access, the study surveyed approximately 500 firms across Kampala, Wakiso, and Mukono to assess financial management practices and identify barriers to external investment. The project also incorporated a randomized controlled trial in which 150 firms received intensive training and mentorship from financial experts to strengthen financial recordkeeping, budgeting, costing, compliance, and financial planning. By comparing participating firms with those that did not receive the intervention, the study evaluated whether improved financial management enhanced access to finance, business performance, employment creation, and long-term firm growth.
Research impact
The study provides valuable evidence on how strengthening financial management systems can improve investment readiness and expand access to finance for high-growth enterprises. Its findings inform enterprise development programmes and policies aimed at strengthening Uganda's SME sector, promoting private sector growth, and increasing employment opportunities.
