Journal
Metropolitan Journal of Academic Multidisciplinary Research
MJAMR
Financial Management Practices and Financial Performance of SME’s In Wakiso District, Uganda
Kabanda Richard, Akampurira Sarah
| Journal | Metropolitan Journal of Academic Multidisciplinary Research (MJAMR) |
| Volume / Issue | Vol. 5, No. 4 |
| Published | 30 April 2026 |
| ISSN | 3006-4384 |
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
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
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