MJAMR

Financial Management Practices and Financial Performance of SME’s In Wakiso District, Uganda

Kabanda Richard, Akampurira Sarah


Abstract

This study examined the relationship between financial management practices and the financial performance of small and medium enterprises (SMEs) in Wakiso District, Uganda. The research was motivated by the growing recognition that poor financial management was one of the leading causes of SME failure in Uganda, with many businesses collapsing not due to lack of market demand but due to inadequate budgeting, poor working capital management, and the absence of basic financial record-keeping systems. A cross-sectional research design was employed, and data were collected from 311 SME owners and managers in Wakiso District. Financial management practices were operationalized through four dimensions: budgeting and financial planning, working capital management, financial record-keeping, and investment appraisal. Financial performance was measured through profitability, liquidity, and revenue growth indicators. The findings revealed that financial management practices had a statistically significant positive effect on financial performance, with working capital management and financial record-keeping emerging as the strongest predictors.

Keywords

Financial Management SME Performance Wakiso District Uganda Budgeting Working Capital
Metropolitan Journal of Academic Multidisciplinary Research

Cite This Article

Kabanda Richard & Akampurira Sarah (2026). Financial Management Practices and Financial Performance of SME’s In Wakiso District, Uganda. Metropolitan Journal of Academic Multidisciplinary Research, 5(4). https://journals.miu.ac.ug/pages/article.php?article_id=397

More in This Issue

View full issue →
1
Access To Business Information And Performance Of Smes In Nakawa Market, Kampala, Uganda
Asiimwe Isaac Kazaara, Irumba Alex, Akampurira Sarah
Business Information SME Performance Nakawa Market Kampala
2
Africa's Youngest Giant: A Longitudinal Analysis of Uganda's Demographic Dividend Opportunity and the Policy Imperatives for Realization
Dr Arinaitwe Julius1 , Dr Mategeko Betty2
Africa's Youngest Giant Longitudinal Analysis Uganda's Demographic Dividend Opportunity and Policy Imperatives for Realisation
3
Agriculture Support Programs And Poverty Eradication In Rural Areas: A Case Study Of Ntusi Sub-County
Kato Jacob1 , Kamugira Apophia2
Agriculture Support Programs Poverty Eradication Input Support Extension Services
5
Assistive Technology And Participation Of Students With Special Needs In Selected Secondary Schools In Mbale District
Bikala Mathias Brian, Mirembe Suzan
Assistive Technology Students with Special Needs Inclusive Education Participation