Management skills and the failure of small and medium enterprises in Uganda; Case study : Rabong multi-purpose society, Tororo

Abstract

The study was aimed at finding how management skills challenge the performance of Rabong Multi-purpose scheme, and was guided by the following specific objectives; to investigate the relationship between bookkeeping and the failure of SMEs, to assess the relationship between planning and the failure of SMEs, to examine the relationship between monitoring and the failure of SMEs.The study was determined by a positive hypothesis, “There is a direct relationship between management skills and the failure of SMEs.”The researcher employed a case study design where questionnaires were used as primary tools using purposive and probability sampling techniquesand document review as a secondary tool for data collection which was analyzed using descriptive analysis and results were presented in tables and graphs. The key study findings were; Poor record keeping practices is the impediment to business growth, thus proving that there is a relationship between bookkeeping and the failure of SMEs. Lack of contingency plans meant for risks also makes a business susceptible to failure, this shows that there is a relationship between planning and the failure of SMEs. Poor monitoring practices pauses a challenge towards business growth, this means that there is a relationship between monitoring and the failure of SMEs. Generally, there is a significant relationship between management practices and the failure of SMEs. The lack of intersection of theoretical knowledge from the classroom and practice from the ground to gain managerial skills created a gap, this study was therefore conducted to find ways of reducing it. From the study, it was concluded that management skills specifically bookkeeping, planning, and monitoring were lacking due to a number of issues that arose in those areas. Therefore, it was recommended that the company needed to carry out reforms like; employing more skilled workers, sensitizing workers on the benefits of planning, improving on the communication chain between workers and employees, among others. The company was recommended to; hire skilled accountants and bookkeepers with regard to bookkeeping. Regarding planning, there was a need to sensitize the employees in the company on the essence of planning and holding meetings, budgetary planning should also be done periodically. Regarding monitoring practices, improving on customer care, hiring more workers, marketing their products were advised.