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 →
36
Supplier Quality Assurance And Business Performance Of Logistics Companies. A Case Study Of Aramex Company Ltd Uganda
Namayanja Mackline1 , Irumba Alex2
Supplier Quality Assurance Supplier Selection Supplier Performance Monitoring Continuous Improvement
37
Technology In Transferring Marketing Strategies: A Case Study Of Jumia Uganda Limited
Nansubuga Betty, Mwesigwa Henry
Technology Marketing Strategies E-commerce Digital Marketing
38
The Coping Mechanisms Adopted by Refugees in Response to Aid Reduction in Rwamwanja Refugee Settlement, Kawenge District, Uganda.
Ocan Richard1 , Babirye Peninah2 , Aisha Nakyeyune3
Coping mechanisms Refugee Aid Reduction
39
The Effect Of E-Learning On Learners' Academic Performance In Secondary School: A Case Study Of St. Mary's Simbya Secondary School In Bundibugyo
Biira Annet Zadoki, Dr. Okee Jill Margaret
E-learning Academic Performance Secondary Education ICT in Education
40
The Effect Of Overfishing On Communities: A Case Study Of Lake Victoria, Kalangala District, Uganda
Atuhetrwe Joyce, Kirwisa Matovu
Overfishing Lake Victoria Kalangala District fishing communities