| dc.description.abstract | With the business environment becoming largely volatile and uncertain, many firms are struggling to ensure financial sustainability and private secondary schools in Uganda have not been spared either. This study focused on establishing the effect of financing strategies on the financial sustainability of private secondary schools, with a specific focus on Jinja City as a study area. The specific objectives addressed in the study were (i) to examine the effect of external borrowing on financial sustainability of private secondary schools in Jinja City, (ii) to investigate the effect of lobbying for grants on financial sustainability of private secondary schools in Jinja City and (iii) to assess the effect of internal fund reserve on the financial sustainability of private secondary schools in Jinja City. The study was guided by the Trade-off Theory. A cross sectional survey research design was adopted with both qualitative and quantitative approaches used in data collection from a sample of 61 private secondary schools that existed for at least 5 years and were charging a low fee of not more than 500,000 Uganda Shillings. Data was gathered using both structured questionnaires and interviews. The analysis was performed using regression analysis to test the study hypotheses. The findings established that whereas both grants and internal fund reserves had a positive effect on financial sustainability, external borrowing instead has a significant negative contribution on financial sustainability. The study therefore concluded that private secondary schools may opt for grants and internal fund reserves as a long-term financing strategy that may have a direct contribution on financial sustainability while limited focus should be put on external borrowing especially when schools aim for future financial sustainability of the school. The recommendations to private secondary schools, school owners, and policy makers were; private secondary schools should thoroughly assess the associated effects of external borrowing on the school by comparing the cost of borrowing with the benefits of borrowing before choosing to borrow, private secondary schools should step up efforts of lobbying for grants by setting up grants, lobbying committees and negotiate with government and private schools should invest more on internal income generating activities to increase internal fund reserves. This study provides private school owners with empirical insights into which financing strategies are most effective in fostering financial sustainability. Not only that, the study also contributes to the development of theoretical frameworks that explain the influence of financing strategies on financial sustainability in Private secondary schools.
Key terms: External borrowing, grants, internal fund reserves, and financial sustainability. | en_US |
