The role of financial management practices on the performance of small and medium enterprises in Uganda:

Abstract

The study to establish the role of financial management practices on the small and medium enterprises in Kikuubo ,Kampala which is characterized by small and medium businesses with the objective of providing evidence in relation to the dimensions of cash management , accounting practices and risk management by the small and medium enterprises in relation to their performance. The study used both quantitative and qualitative research techniques as well as different methods of data collection to obtain the required data for the research. Among the tools were the questionnaires to indicate when in agreement or when they disagreed with the questions asked. The study found out that most of the participants were male (62.2%) and female of (37.8%) with the majority having attained diplomas (39.4%) and having been in business for at least five years (40.9%). The study also revealed a relation between cash management, accounting practices and risk management as to having a positive effect on the performance of SMEs with (65%) , (53.5%),and (80%) respectively. The study also made some recommendations in relation to the findings to ensure that businesses improve their performance when proper financial management is done