The study was carried out in Buwenge sub-county to establish the role of SACCOs in the growth of small scale businesses. The study sought to find out factors inhibiting the growth of small scale business supported by SACCOs, to establish the extent to which services offered by SACCOs have led to growth of small scale businesses and to establish the sources of credit used by small scale businesses in Buwenge sub-county. The study used descriptive and cross sectional research design which employed both qualitative and quantitative methods. The study targeted a sample of 135 respondents and data was collected using self-administered questionnaire. The major findings of the study showed that: - the major factors that affected the growth of small scale businesses in Buwenge sub-county were high interest rates; high costs of operations such as trading license and rent. It was also found out that the regular loan payments, quick, easy and increased access to subsequent loans and training in business management were among the factors which led to growth of small scale businesses. It was further found out that the major sources of capital for businesses in Buwenge sub-county were microfinances, SACCOs, owners’ equity and capital, agricultural production and personal savings. The study concluded that for small scale businesses to grow they should endeavor to use their own capital when starting the business and thereafter they can borrow for expansion. The study recommends the following among others: interest rates should be reduced, more staff under SACCOs should be recruited and training workshops should be organized to equip members of small and medium firms plus business SACCO members with business skills and management.

Keywords: Business growth, Small scale businesses, SACCOs