MJAMR

Effect Of Budgeting Policy On Financial Performance On Small Sized Enterprise In Nansana Municipality, Wakiso District

Katumba Allan, Magala Muhammed


Abstract

The study examined the effect of budgeting policy on financial performance of small-sized enterprises in Nansana Municipality, Uganda. Using a descriptive correlational research design, data was collected from 95 small enterprise owners and managers through structured questionnaires and analyzed using SPSS version 25. The findings revealed a significant positive effect (r=0.734, p<0.01) of budgeting policy on financial performance. Regression analysis demonstrated that budgeting policy explained 53.9% of variance in financial performance (R²=0.539). The study concluded that comprehensive budgeting practices, including budget preparation, implementation, monitoring, and control, substantially improved revenue generation, cost management, profitability, cash flow stability, and overall financial performance of small enterprises. Recommendations included mandatory budgeting training for small enterprise owners, simplified budgeting tools tailored to SME contexts, government support programs promoting budgeting culture, access to affordable financial management software, and strengthened business development services focusing on budgeting competencies.

Keywords

Budgeting policy financial performance small enterprises SMEs budget planning budget
Metropolitan Journal of Academic Multidisciplinary Research

Cite This Article

Katumba Allan & Magala Muhammed (2025). Effect Of Budgeting Policy On Financial Performance On Small Sized Enterprise In Nansana Municipality, Wakiso District. Metropolitan Journal of Academic Multidisciplinary Research, 4(12). https://journals.miu.ac.ug/pages/article.php?article_id=527

More in This Issue

View full issue →
31
Relationship Between Market Orientation And Business Performance Of Barclays Bank
Kawule Chrispus, Zikusooka Enock
Budget allocation healthcare performance service delivery Mulago Hospital
32
Relationship Between Mobile Marketing And Organizational Profitability. A Case Of Harris International Ltd, Kampala
Kato Kenneddy, Zikusooka Enock
Mobile marketing organizational profitability SMS marketing mobile applications
33
Relationship Between Taxation Polices And Growth Of Small Scale Business In Kasubi Market Kampala.
Kuguma Sharon, Babirye Shamirah
Taxation Policies Small Scale Business Business Growth Tax Compliance
34
Relationship Between The Financial Control And The Financial Stability In Nansana Municipality, Wakiso District
Kahunde Barbra Moselyn, Babirye Shamirah
Electronic System Management Organizational Management E-Government Service Delivery
35
The Effect Of Compensation On Service Delivery At Ntungamo District Local Government In Uganda
Mwijuka Kanaahe Brunner
Compensation Service Delivery Employee Motivation Public Sector