Journal
Metropolitan Journal of Academic Multidisciplinary Research
MJAMR
Business Risk Management, Capital Structure, And Financial Performance Of Small And Medium Enterprises (SMEs): A Case Of Nakaseke District
Tibingana Jonas, Irumba Alex
| Journal | Metropolitan Journal of Academic Multidisciplinary Research (MJAMR) |
| Volume / Issue | Vol. 5, No. 5 |
| Published | 31 May 2026 |
| ISSN | 3006-4384 |
Abstract
This study examined the relationships among business risk management, capital structure, and financial performance of SMEs in Nakaseke District, Uganda. A correlational cross-sectional design was employed with 164 SME owners and managers selected through stratified random sampling from a population of 380 registered SMEs. Business risk management was measured by risk identification, risk mitigation, and risk monitoring practices. Capital structure was assessed through debt-to-equity ratios, equity financing, and retained earnings utilization. Financial performance was measured by profitability, liquidity, and business growth. Multiple regression analysis yielded R² = 0.538, indicating that business risk management and capital structure jointly explain 53.8% of variance in SME financial performance. Risk mitigation (β = 0.361, p < 0.001) and equity financing (β = 0.298, p < 0.001) were the strongest predictors. The study recommends that SMEs in Nakaseke formalize their risk management practices and diversify capital structures to reduce over-reliance on short-term debt.
Keywords
Business risk management
capital structure
financial performance
SMEs
Nakaseke District
Uganda.
Cite This Article
Tibingana Jonas & Irumba Alex (2026). Business Risk Management, Capital Structure, And Financial Performance Of Small And Medium Enterprises (SMEs): A Case Of Nakaseke District. Metropolitan Journal of Academic Multidisciplinary Research, 5(5). https://journals.miu.ac.ug/pages/article.php?article_id=446
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