ABSTRACT 

The study was on analysis on the factors affecting the choice of debt an(1 equity financing among scale firms inWater etc. Secondary dafa which inc1 tide A niitnal reports collected from the selected small scale lii ms in U muahia wul c usud in ruici at itig dat a for thu st tidy I he data col kcicu WdS ana lyicd using con c lalio ii and r cgn cssion iii odc I I hi i esult showcd that then C IS 1 significant i ciati()flslilp bcl\Ccii dubt and cqtLlly at J o Fhc sinai I 'calc tin titS ako had thu problem of raisi un I tinds and dclei in I ning thu best mix of financing I lieu i nvcst mciii Al so thu sc lc lcd small scaR. hi ins wci c aiced with (lie problem oF how Rinds can be al loeaie(I to I he investmcn that will yield a good rçturn in order to increase perf'orniancc of (lie selected small scale liii ii Pi o fit i aic whet e s i gii i ficatit a iid in vet scly i ci cit cd at 1 0% to thu (lcj)Cfld( fit vai iabI (capital sO ticttiu..), hiqurusi ' tic h sigutil cant at o/o and inv rscl)

iclatcd to thu dcperidcnt vanahlc I iabilutv talc hulL sienifjcant ii O/ J1(l directly related to the dependent variable. J\ssct level where significant at 5% and lnvci sely r claied to the dcpendcnl vai iable Small scalu should make usc of equIt\ 4 in Financing thur investincnt than dubi I in(Inc1u1g I his will hulp the small SUCIIL firms to avoid dcbt obligation 110111 crcditoi s small sc ilu hi ins should maku stir c • that Ihc 1 tincl IOSc [hi ougli thu usc of cq U ity and dubi arc usud iii pi ojuct that y icids good nturii to the firm. 'Ihiis will boost ihe or1arice oF thn lftms nid niiniiniv.c the I iability 01 the finn.