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.