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 →
16
Financial Inclusion And Growth Of Small And Medium Enterprises In Uganda: A Case Study Of Kampala SME’s
Akampurira Sarah1 , Babirye Shamirah2
Financial Inclusion SME Growth Kampala Uganda
17
Financial Literacy And Poverty Management Among Youths In Kira Municipality, Wakiso District, Uganda
Kabanda Isaac, Magala Muhammad
Financial Literacy Poverty Management
18
Financial Management Practices and Business Sustainability Of Manufacturing Firms In Kawempe Division
Nantongo Grace Solome1 , Zikusooka Enock2
Financial Management Business Sustainability Manufacturing Firms Working Capital
19
Financial Management Practices and Business Sustainability Of Manufacturing Firms In Kawempe Division
Nantongo Grace Solome1 , Zikusooka Enock2
Financial Management Business Sustainability Manufacturing Firms Working Capital
20
Financial Management Practices And Business Sustainability Of Manufacturing Firms In Nakawa Division
Namayanja Diana, Zikusooka Enock
Financial Management Business Sustainability Cash Flow Management Budgetary Control