Abstract:
The aim of this research was to examine the impact of Fiagya Rural Bank on
SMEs profitability and growth. Through the stratified sampling method, a
sample size of 156 respondents was selected to examine the impact of Fiagya
Rural Bank on SMEs profitability and growth. The research design used in the
study was descriptive research type. Data was collected through the
administration of questionnaire. It was found out that overdraft and loans were
the types of credit facilities available for SMEs in the Fiagya Rural Bank and
these loans affect SMEs operating profit margin by increasing profit, speeding
up operations, and making operational cost low. Additionally, loans and credit
given by Fiagya Rural Bank to SMEs aids in expanding their businesses by
securing raw materials on time, employ a lot of people, increase sales and
growth rate. The findings also revealed a strong positive relationship between
accessibility of credit and growth of SMEs. The study recommends that
Fiagya rural bank should develop other special package for SMEs aside the
overdraft and loans that they have been providing. Also, since loans and credit
affect SMEs profitability and growth, Fiagya rural bank should increase the
credit or loans allocated for SMEs.
