Journal
Metropolitan Journal of Academic Multidisciplinary Research
MJAMR
Relationship Between Access to Credit and Business Expansion: A Case Study of Women Entrepreneurs in Mbale City
Irumba Alex, Ojok Alex
| Journal | Metropolitan Journal of Academic Multidisciplinary Research (MJAMR) |
| Volume / Issue | Vol. 5, No. 3 |
| Published | 31 March 2026 |
| ISSN | 3006-4384 |
Abstract
Access to credit remained a critical determinant of business growth and sustainability, particularly for women entrepreneurs in developing economies. In Mbale City, women constituted a significant portion of small and medium enterprise owners, yet faced unique challenges in accessing financial resources necessary for business expansion. This study examined the relationship between access to credit and business expansion among women entrepreneurs in Mbale City, conducted between September 2023 and February 2024. Women entrepreneurs in Mbale operated across diverse sectors including retail trade, agriculture, hospitality, and manufacturing, contributing substantially to the local economy and employment generation. Despite their economic importance, these women frequently encountered barriers including lack of collateral, limited financial literacy, gender biases in lending institutions, and restrictive household responsibilities that constrained their ability to secure and effectively utilize credit facilities. The study employed a descriptive correlational research design using mixed methods to comprehensively investigate the relationship between credit access and business expansion. The target population comprised 1,847 registered womenowned businesses in Mbale City. Using Krejcie and Morgan's sampling table, a sample size of 320 respondents was determined and selected through stratified random sampling across four business sectors: retail (35%), agriculture (28%), hospitality (22%), and manufacturing (15%). Data collection utilized structured questionnaires containing both closed and open-ended questions, supplemented by key informant interviews with 12 microfinance institution managers and 8 commercial bank officials. The questionnaire demonstrated high reliability with a Cronbach's Alpha coefficient of 0.862. Data analysis employed SPSS version 27, utilizing descriptive statistics, Pearson correlation analysis, and multiple regression to establish relationships between variables. Business expansion was measured using indicators including revenue growth, employee numbers, asset accumulation, market reach, and product diversification. Findings revealed that 58.7% of women entrepreneurs had accessed some form of credit, with microfinance institutions being the primary source (64.2%), followed by SACCOs (23.5%) and commercial banks (12.3%). Access to credit demonstrated a strong positive correlation with business expansion (r=0.781, p
Keywords
Access to credit
business expansion
women entrepreneurs
Mbale City
financial inclusion
microfinance
entrepreneurship development
gender and finance
Cite This Article
Irumba Alex & Ojok Alex (2026). Relationship Between Access to Credit and Business Expansion: A Case Study of Women Entrepreneurs in Mbale City. Metropolitan Journal of Academic Multidisciplinary Research, 5(3). https://journals.miu.ac.ug/pages/article.php?article_id=301
More in This Issue
View full issue →
31
Rapid Urbanization and Its Effects on Social Welfare and Living Conditions in Nansana Municipality, Wakiso District, Uganda Dr Mategeko Betty Avance International University Abstract Rapid urbanization has emerged as one of the most defining demographic a
Rapid urbanization
social welfare
living conditions
Nansana Municipality
32
Relationship Between Head Teachers' Leadership Strategies And Teacher Content Mastery In Selected Public Secondary Schools In Kanungu District, Uganda
Head teachers
leadership strategies
instructional leadership
transformational leadership
33
Relationship between Head Teachers' Leadership Strategies and Teachers' Preparedness In Selected Public Secondary Schools In Kanungu District, Uganda
Head teachers
leadership strategies
instructional leadership
transformational leadership
34
Relationship between Institutional Implementation Capacity (Iv1) In PDM Execution And Local Economic Development Outcomes In Kampala District.
Parish Development Model
institutional implementation capacity
local economic development
organizational structure
35
Relationship Between Job Satisfaction And Work Productivity: A Case Study Of Igongo Cultural Center And Country Hotel, Biharwe, Mbarara
Job Satisfaction
Work Productivity
Herzberg's Two-Factor Theory
Hospitality Industry