Financial Inclusion for all: Government policies and pitfalls in performance of small and medium enterprises in Juba Town, South Sudan

Abstract

Medium-sized and small companies in Juba, South Sudan, have restricted access to financial institutions, as other developing-nation cities, are unable to produce enough revenue. They find it difficult to propel firms in a sustainable way due to a lack of funding. As a result, company failure is a common occurrence in the city. The economy contracts when enterprises fail, which has catastrophic effects on human survival. In Juba Town, small and medium enterprises are still modest and employ only one person. Juba Town's small and medium enterprises saw a performance drop of more than 5% in 2018. In 2021, almost two hundred businesses in Juba Town went out of business. This clearly illustrates how badly South Sudan's businesses are doing in Juba Town. The aim of this research was to determine the effect of financial inclusion on the performance of small and medium-sized businesses in Juba, South Sudan. The behavioral theory of the business, asymmetric information theory, financial intermediation theory, and The Gibbs Mini and Medium Company Encouragement. The research design for the study was explanatory. The 15654 enterprises in Juba, South Sudan, were the target population. Owners and managers of businesses were the specific responders. According to the Yamane formula (1967), 390 owners or managers of enterprises in Juba Town, South Sudan, made up the sample size. The samples of the enterprises used the stratified and random sampling technique. Government policies played a direct optimistic influence on SMEs performance but did not significantly moderate the relationship between financial inclusion and accomplishment. SMEs that are monetarily erudite, have access to adequate financing, can afford credit facilities, and are aware of financial requirements perform better. The study recommended strengthening SMEs-focused financial literacy programs, expanding access to affordable credit through flexible loan products, and enhancing awareness campaigns on financial products and costs. Policymakers should also improve the implementation of supportive regulations and link incentives such as tax relief and subsidies to financial inclusion initiatives. For SMEs owners, adopting structured financial planning, maintaining stronger relationships with financial institutions, and leveraging alternative financing options such as SACCOs and mobile money will enhance growth and sustainability.

Keywords: Financial Inclusion, Government policies, and pitfalls in performance of SMEs

DOI: 10.7176/EJBM/18-3-05

Publication date: March 28^th 2026