Developing a sustainable financing model for SMEs during the organizational life cycle in Uganda

World over, it is generally acceptable that Small and Medium Enterprises (SMEs) are the engines of growth for a number of economies contributing more than half of the economies employment opportunities while at the same time being sources of innovation. With generally that acceptable level of importance to different economies, it is important that these firms continuously prosper for the countries to reap the accompanying benefits. In order for these firms to prosper, there is need for conscious effort being placed on creating an environment that supports their growth and prosperity. It is from this understanding that this study set out to develop a sustainable financing model for Small and Medium Enterprises along the organizational life cycle. The study originated from the observation that a number of researchers have undertaken studies regarding the appropriate mix of debt and equity in the capital structure of organizations with a view that organizations are looked at as standard entities without putting into consideration the stage of growth that an organization might be at. The study was based on the premise that organizations move through different stages of growth referred to as the organizational life cycle and at each stage, a different mix of debt and equity may be appropriate