The Small Medium Enterprises (SMEs) that dominate the business sector in developing countries are encumbered by (i) inadequate management systems; (ii) poor financial records and accounting systems; (iii) insufficient networks that limit their access to markets; and (iv) operating inefficiencies that negatively impact production costs and profits.
3 Consequently, formal financial institutions that rely on audited financial statements and wellarticulated project and financial proposals to disburse loans assume that most SMEs are  1  Mugume, A. (2008). Profitability, Concentration, and Efficiency in Uganda’s Banking Industry. (D. A. Kihangire, C. A. Abuka, & J. O. Apaa, Eds.) The Bank of Uganda Staff Paper Journal, 2 (1), 5–35.