MJAMR

COVID-19 PANDEMIC AND THE FINANCIAL PERFORMANCE OF SMALL-SCALE BUSINESSES IN KAKOBA DIVISION, MBARARA CITY

JACKSON BALINURA


Abstract

This study examined the influence of operational disruption, access to resources, and market uncertainty on the financial performance of small-scale businesses in Kakoba Division, Mbarara City, Uganda. A descriptive crosssectional survey design was employed, with data collected from 145 respondents. Data were analyzed using descriptive statistics, Pearson correlation, and regression analysis. The results indicated that operational disruption had a significant negative relationship with financial performance (r = -0.64, p < 0.01) and was a significant negative predictor, explaining 41% of the variance in financial performance (R² = 0.41, β = -0.64). Access to resources demonstrated a strong positive correlation with financial performance (r = 0.721, p < 0.01) and was the strongest positive predictor, explaining 52% of the variance on its own (R² = 0.52, β = 0.721). Market uncertainty showed a significant negative relationship (r = -0.68, p < 0.01) and was a substantial negative predictor, accounting for 46% of the variance in financial performance (R² = 0.46, β = -0.68). The multiple regression model revealed that these three factors collectively explained 67% of the variance in financial performance (R² = 0.67, F(3,141) = 95.84, p < 0.001). The findings align with the Dynamic Capabilities Theory, highlighting that resource access is the most critical factor for resilience, while operational and market shocks are significant threats. The study recommends that policymakers and business stakeholders develop interventions aimed at improving access to financial and digital resources, building robust supply chains, and enhancing market intelligence systems to boost the performance and sustainability of small-scale businesses.

Keywords

COVID-19 PANDEMIC AND THE FINANCIAL PERFORMANCE OF SMALL-SCALE BUSINESSES IN KAKOBA DIVISION MBARARA CITY
Metropolitan Journal of Academic Multidisciplinary Research

Cite This Article

JACKSON BALINURA (2026). COVID-19 PANDEMIC AND THE FINANCIAL PERFORMANCE OF SMALL-SCALE BUSINESSES IN KAKOBA DIVISION, MBARARA CITY. Metropolitan Journal of Academic Multidisciplinary Research, 5(3). https://journals.miu.ac.ug/pages/article.php?article_id=352

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