Procurement management and SMES performance:

Abstract

This study looked at the effect of procurement management on the performance of SMEs in Uganda with a case study of SMEs in Ndeeba trading center. Specifically the study reviewed procurement planning, controls and monitoring and how they affected the performance of SMEs in terms of market share, costs of operation, sales growth and profitability. Due to high competition among businesses, management is left with only procurement related expenditures to improve its performance. A case study design was used and data was collected from the owners and employees of SMEs and the study had 30 respondents from the targeted population of 32; this sample was selected using random sampling technique. The data from primary and secondary sources was analyzed both quantitatively and qualitatively using the Statistical Package for the Social Sciences to examine the relationships between procurement management and performance of SMEs. The key findings of the study indicated that procurement management and its attributes (procurement planning, controls and monitoring) positively affects the performance of SMEs due to the significant relationships that were established from the study between these variables and the performance of the SMEs. From the study, it was recommended that proper procurement planning; controls and monitoring techniques should be put in place to improve on performance of SMEs in terms of increased profitability, operation costs, market share and sales growth. Further research was recommended to cover other factors which were not part of the model of the study. It was found out that procurement management positively affects the performance of SMEs in Uganda