Risk And Success Factors Of Sustainable Growth And Development Of Small And Medium Enterprises (smes) In Uganda

This study examined the sustainability of SMEs in Arua District, northwestern Uganda. The cross-sectional study used mixed methodologies. The quantitative part used stratified random sampling, while the qualitative arm used purposive sampling. Quantitative data on success and risk factors of SME sustainable growth and development were collected using self-constructed questionnaires. The study found that institutional factors such as finances, infrastructures, location, technology, premise ownership, and board of directors positively impacted SME growth (β = 0.799, p .01). Taxes, legality, investment climate, competitiveness, inflation, and security had no statistically significant impact on SMEs in Arua District (β = 0.135, p =.546). Human variables such as management capacity and training, business planning, business assessment, customer complaint handling, and consumer purchasing power did not affect SMEs‘ sustainable growth and development (β = - 0.139, p= .491). Qualitative research found that SMEs might grow and thrive if their owners receive training and mentorship. SME owners and the government should address institutional, external, and human variables to improve SMEs‘ business efficacy.