Abstract
The study employed the World Bank Enterprise survey 2013 for Uganda and quintile method to determine the relationship between firm location, International Standards Organization (ISO) certification and cash inflows of Small and Medium Enterprises (SMEs) in Uganda. The results show that ISO certification and firm location are positively and significantly related to SMEs’ cash inflows. It was also realized that other factors such as using email, foreign ownership, access to finance and tax administration are not obstacles to firm’s cash inflows. Our findings suggest that creating awareness among entrepreneurs about ISO certification and creating enabling environment for SMEs in Uganda to become ISO certified should be highly considered by Government of Uganda. In addition, the Government of Uganda with Kampala Capital City Authority must develop deliberate policy to enable SMEs get internet connection cheaply and faster. This will ease doing businesses and enable SMEs’ cash inflows to grow. Key words: Cash inflows, location, International Standards Organization (ISO) certification, Uganda.
Highlights
Micro, Small and Medium Enterprises (MSMEs) are major contributors to economic growth of developing nations (Calice et al, 2012)
The study employed the World Bank Enterprise survey 2013 for Uganda and quintile method to determine the relationship between firm location, International Standards Organization (ISO) certification and cash inflows of Small and Medium Enterprises (SMEs) in Uganda
The results show that ISO certification and firm location are positively and significantly related to SMEs’ cash inflows
Summary
Small and Medium Enterprises (MSMEs) are major contributors to economic growth of developing nations (Calice et al, 2012). NDP II (2015) provides that Government of Uganda should strengthen standards and processes for SME production. This is for the purpose of enhancing the use of standards and quality infrastructure in industry as an objective of developing Uganda‟s industrial sector. Having discussed the importance of cash holding in a firm, it is imperative to introduce International Organization on Standards (ISO), the following paragraph
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