SMEs have been acknowledged by governments globally as a prime source of economic growth and development. In Africa there has been a noticeable increase in the number of SME establishments. In Uganda, SMEs are the most popular business choice and play a major role in the national economy. Although SMEs significant economic contributions are generally acknowledged, being ethical and successful has become a challenge, as many SMEs in Uganda have not fully adopted and integrated ethics into their business strategies. Understanding the reasons for the increased unethical behaviour in SMEs is central to their continued business success. The primary objective of the study was to investigate the factors that influence ethical business conduct in Ugandan SMEs. From a comprehensive literature review, three main independent variables (staff-, business- and external environment factors) were identified as variables influencing ethical business conduct (dependent variable) of SMEs. A hypothetical model was developed to determine whether the independent variables have an influence on the dependent variable. Twelve hypotheses were formulated to test the relationships between three staff factors, five business factors, four external environment factors and ethical business conduct. The study sought the perceptions of SME owners or managers in the Kampala District and utilised the quantitative research paradigm. A survey was conducted with the aid of a structured self-administered questionnaire distributed by three fieldworkers. A combination of convenience and snowball sampling was utilised. The final sample comprised 384 respondents. The validity of the measuring instrument was ascertained by using exploratory factor analysis. The Cronbach‟s alpha values for reliability were calculated for each of the factors identified during the exploratory factor analysis. A total of ten valid and reliable factors were retained. Pearson product-moment correlation and multiple regression analysis were used to test the correlation and statistical significance of the relationships hypothesised between the various independent and dependent variables. One statistically significant relationship was found between the staff factors (employee attitude) and ethical business conduct. Two statistically significant relationships were found between the business factors (knowledge acquisition and management practices) and ethical business conduct. Three statistically significant relationships were found between the external environment factors (legal requirements, industry norm and media power) and ethical business conduct. External environmental factors seem to have a greater influence on SME ethical business conduct in Uganda. Multivariate Analysis of Variance (MANOVA) was used to identify if significant relationships exist between the eight demographic variables and seven reliable and valid independent variables. Furthermore, post-hoc Scheffé tests identified where the significant differences occurred between the different categories. Cohen‟s d-values were calculated in order to assess the practical significance of the mean scores. A total of twelve practical significant relationships were identified. SME owners or managers should consider employing staff with the right attitude to uphold sound ethical business values. They should implement ethical management practices to promote ethical business conduct amongst employees and ensure that employees are made aware of what is regarded as acceptable ethical business behaviour. SME owners or managers should adhere to legal requirements and industry norms to be known as businesses exhibiting ethical behaviour and utilise media to instil and guide ethical values in employees. Lastly, they must pay attention to the role that demographical variables such as: gender, level of education, current employment status, number of years in business and number of employees, play in behaving ethically in business.

A thesis submitted to the Faculty of Commerce, Law and management, University of Witwatersrand, Johannesburg in fulfilment of the requirements for the degree of Doctor of Philosophy in Business Sciences. Johannesburg, November 2017. / The conceptualisation of core values indicate that they are guiding principles in shaping organisational culture. Furthermore, values enhance firm efficiency if they are well integrated in all business processes. Despite the fact that core values motivate employees, SMEs in the informal economies of developing countries do not provide a list of core values to employees. The purpose of this study, therefore; was to establish the commonly practiced core values in Uganda’s informal economy and whether such core values could motivate and reinforce behaviour among employees and at the same time, foster entrepreneurial performance. The study adopted a mixed methods approach. In this case, the sample size for qualitative interviews was twenty-five respondents whereas the sample size for the quantitative survey was three hundred and eighty-six (386) respondents. The interviews were guided by a semi-structured interview guide and revealed that the commonly practiced core values in Uganda’s informal economy are; cleanliness, trust, fairness, responsibility and respect. It was established that core values motivate and reinforce employee behaviour. The quantitative survey was done using a questionnaire with a five- point Likert scale. Hypotheses and mediation tests were carried out by way of structural equation modeling, using AMOS and Sobel’s test respectively. Results from all hypotheses’ tests indicated significant positive relationships between predictor and outcome variables. However, the relationships of; motivation and entrepreneurial performance and legitimacy and entrepreneurial performance were positive, but insignificant. In addition, it was discovered that the reinforcement theory is applicable in Uganda’s informal economy. Based on the results of this research, it is recommended that SMEs should seek to acquire skills on how to fully turn legitimacy and motivation into business advantage and how to use core values as tools for advertising and marketing the business. Finally, the Ministry of Gender, Labour and Social Development, with help from local governments, should design a policy to tempt SMEs to voluntarily engage in community service, especially cleaning up water and drainage channels to improve cleanliness in the communities as well as improving on business legitimacy. / GR2018

This study investigates the relationships between cash management and growth of informal businesses in Uganda. Whereas anecdotal evidence has for some time revealed that informal businesses in Uganda are faced with the challenge of cash management, no specific studies have been conducted to investigate how this relates to the growth of businesses where evidence has also indicated that most of these businesses do not exist for very long. In particular, the study assesses and explores the growth levels of informal businesses in terms of sales volume, growth in employment and length of existence. The study investigates the various ways in which informal businesses manage their cash and investigates the various internal and external factors that moderate cash management and the growth of the informal businesses. Furthermore, the study proposes a possible framework to manage cash in informal businesses and makes recommendations to informal business owners and managers on how to effectively manage cash in order to stimulate business growth. In order to investigate the relationships between the variables, an empirical investigation was undertaken. Based on the literature review, the primary objective of the study was formulated to investigate the relationships between cash management and growth of informal businesses amidst the external and internal environment in Uganda in order to suggest a framework for effective management of cash by informal businesses that would enhance their growth. A positivistic research paradigm was adopted in this study. A sample of 383 informal businesses was drawn from the five divisions of Kampala district namely; Central, Kawempe, Makindye, Nakawa and Rubaga. To ensure validity and reliability, EFA and Cronbach’s alpha coefficient were computed. Six hypotheses were developed to test the relationships between cash management and growth of informal businesses. The empirical results revealed that there is a significant relationship between cash management and the external environment in which informal businesses operate, a significant relationship between the external environment and the growth of informal businesses and a significant relationship between cash management and growth of informal businesses where the external environment will have a moderating influence on the relationship. The empirical results did not establish a significant relationship between cash management and the internal environment in which informal businesses operate, the internal environment and growth of informal businesses and cash management and growth of informal businesses where internal environment will have a moderating influence on the relationship. The results of this study show that the growth of informal businesses is largely hampered by poor cash management practices and challenges such as the lack of cash planning, lack of cash forecasting and budgeting, lack of financial controls and reporting, the tendency to invest largely in short-term assets which limits their profitability, the employment of less competent and skilled staff and lack of formal accounting information systems. The magnitude of the impact of these is accelerated by the external environment such as competition and the legal and regulatory environment which put pressure on the little cash resources owned by these businesses. Based on the study results, several strategies based on individual cash components of cash planning, cash forecasting and budgeting, financial controls and reporting, short-term investment of cash surplus, competence and skills of staff and accounting information systems were recommended for implementation. It was further recommended that these strategies should be implemented while giving due attention to the external environment if informal businesses are to effectively manage cash and enhance their growth.

The potential of small and micro-enterprises (SMEs) in promoting economic growth in both developed and developing countries is widely accepted and documented by both scholars and policy makers. Lack of access to sufficient financing for these SMEs, especially in developing countries, has been identified as a major bottleneck in realising this potential. Bank credit is one of the major ways of addressing the challenge of inadequate funding that exists in the SME sector. This study was undertaken in order to explore the experiences of bank loan officers and SME borrowers in credit extension to the SME sector in Uganda. The research methodology used multiple methods of data collection which enabled an element of triangulation to be built into the study design. Data was collected both from the supply-side (bank loan officers) and the demand-side (SME borrowers), and entailed unstructured and semi-structured interviews and a questionnaire survey of loan officer and SME borrower experience. Further data was collected through direct observation of the interactive interviews between loan officers and borrowers, which enabled a unique opportunity to enhance the understanding of experiences of loan officers and borrowers. This method offers a development of extant methodologies that have been used to assess bank lending to SMEs, typically indirect methods such as verbal protocols and hypothetical business plans. The supply-side findings suggest that, in addition to the bank lending guidelines and procedures, the organisational context in terms of institutional structure, borrower attributes (especially their knowledge of bank lending guidelines and procedures) and level of congruence between loan officers and organisational goals are important determining factors of credit flow to SMEs. This implies that the context in which lending guidelines are implemented is as vital as the application of these guidelines. Banks are, therefore, challenged to ensure a favourable organisational context in order to facilitate loan officer decisions. On the credit demand side, it was found that borrowers seek to play an active role in the lender-borrower relationship which, in turn, influences decisions made by loan officers. It was established that, in pursuit of this role, borrowers deliberately pre-plan loan requests in an effort to influence the results of the evaluation of their loan applications by loan officers. At times, borrowers intentionally manipulate the information they disclose to loan officers in order to enhance their chances of obtaining credit from banks. The findings also suggest that, in most cases, the borrowers with some knowledge of bank lending guidelines and procedures find it easier to access credit than their counterparts who lack this knowledge. With regard to women-owned SMEs, while there little evidence of ‘official’ discrimination against women-owned SMEs by bank lending policies, there are systematic, cultural, social and legal impediments that lead most women-owned SMEs to access lower levels of credit than their male counterparts. The study recommends that banks should design lending guidelines that integrate both supply and demand factors, instead of focusing only on supply factors like project viability and collateral availability. It is also recommended that banks should develop comprehensive training programmes for borrowers about all aspects of the lending transaction in order to positively influence them. It is further recommended that there should be more consultations with loan officers and borrowers in order to develop a mutually acceptable set of lending policies. This approach, which integrates bank management, loan officers and borrowers in drawing up lending guidelines and procedures, is likely to minimise information asymmetry in SME lending decisions and create a more conducive environment for promoting credit availability to the Ugandan SME sector.

This study was conducted on the premise that if quality business information is provided to business enterprises, socio-economic transformation could be achieved. The study emanated from the documented problem where business enterprises in northern Uganda were found to depend on "word of mouth" rather than any meaningful formal mechanism for accessing information efficiently. The aim of the study was, therefore, to design an information system for northern Uganda business enterprises. The study makes use of document analysis, questionnaires and interviews. The Small and Medium scale Enterprises (SMEs), information providers and business policy-makers in northern Uganda constituted the population of the study. The data which was collected was edited and analysed to produce graphs, charts and percentages. The main findings indicate that business activities in northern Uganda are diverse - covering almost the entire sector of the economy. The SMEs need information on finance/capital/loans, local markets, business management skills, appropriate technologies, business competitors and security. They are lagging behind in using Information and Communication Technologies (ICTs). There is a lack of familiarity with changing technology - especially the Internet. Although the SMEs are making a fundamental contribution to Uganda's economy, they face serious challenges, such as insecurity, inadequate electricity, lack of trained information professionals and appropriate technology to access electronic information. The findings further indicate that respondents want business information to be selective to address their needs. The study concludes that the SMEs need an efficient, effective mechanism to provide the required business information. Hence, it is recommended that a business information system (BIS) design be implemented to address their needs. The BIS should provide business information in terms of legal, technical and economic information as well as contact information and management skills. Information should be processed by means of radio broadcasts, the telephone, short text messages, posters, online and CD-ROM formats - as required by the SMEs managers. To facilitate access, BIS should have telephone services; Internet-based services; online small business workshops; business start up assistant; and Talk to BIS services. BIS should have a flexible interface. / INFORMATION SCIENCE / DLITT ET PHIL (INF SCIENCE)

This study was conducted on the premise that if quality business information is provided to business enterprises, socio-economic transformation could be achieved. The study emanated from the documented problem where business enterprises in northern Uganda were found to depend on "word of mouth" rather than any meaningful formal mechanism for accessing information efficiently. The aim of the study was, therefore, to design an information system for northern Uganda business enterprises. The study makes use of document analysis, questionnaires and interviews. The Small and Medium scale Enterprises (SMEs), information providers and business policy-makers in northern Uganda constituted the population of the study. The data which was collected was edited and analysed to produce graphs, charts and percentages. The main findings indicate that business activities in northern Uganda are diverse - covering almost the entire sector of the economy. The SMEs need information on finance/capital/loans, local markets, business management skills, appropriate technologies, business competitors and security. They are lagging behind in using Information and Communication Technologies (ICTs). There is a lack of familiarity with changing technology - especially the Internet. Although the SMEs are making a fundamental contribution to Uganda's economy, they face serious challenges, such as insecurity, inadequate electricity, lack of trained information professionals and appropriate technology to access electronic information. The findings further indicate that respondents want business information to be selective to address their needs. The study concludes that the SMEs need an efficient, effective mechanism to provide the required business information. Hence, it is recommended that a business information system (BIS) design be implemented to address their needs. The BIS should provide business information in terms of legal, technical and economic information as well as contact information and management skills. Information should be processed by means of radio broadcasts, the telephone, short text messages, posters, online and CD-ROM formats - as required by the SMEs managers. To facilitate access, BIS should have telephone services; Internet-based services; online small business workshops; business start up assistant; and Talk to BIS services. BIS should have a flexible interface. / INFORMATION SCIENCE / DLITT ET PHIL (INF SCIENCE)