| dc.description.abstract | The study examines to establish the relationship between financial management and
performance of small business enterprises.The objectives of the study are: To find out the
effect of budgeting on performance of small business enterprises; To find out the effect of
risk assessment on performance of small business enterprises and to find out the effect of
working capital management on performance of small business enterprises
The study used a case study design and also adopted quantitative and qualitative approach for
the study. The sample size was determined by the Sloven formulaewhich obtained a sample
size of 70 respondents and close ended questionnaireswere used to collect data.
The findings show that budgeting has helped entrepreneurs to set activities of forecasting the
financial demands, to anticipate the levels of sales, cash flows and probable costs, or adapt
finances to any changes in financial circumstances, to keep control and monitoring
performance of their business and furthermore forecasted balance sheets and income
statements are frequently prepared. It was also exposed that assessing risks had assisted
entrepreneurs in identifying, analyzing, and monitoring key business risks, to highlight any
opportunities for improvements, to evaluate and measure the probability and severity of risks,
to efficiently allocate their resources and to prioritizing key business risks for the SME. It
was also discovered that working capital meets the short-term financial requirements of the
business, helps to avoid interruptions in operations and to ensure that surpluses are invested
in ways that will generate suitably high returns for the business. It was also observed that
working capital management has enabled cash to pay for wages, power and other costs and it
is an excellent way for many SMEs to improve their earnings. This has resulted into
increased profits, sales revenues, improved asset and customer base, more efficient and
effective operations and adoption of new technologies.
It was recommended that in the budgeting process, the management should set the meeting to
scrutinize a certain year's process and think through improvements for next year while the
current pain points are fresh in your mind. Reviews of both the process and enabling
technology should be included. It was also recommended that during risk assessment the
organization management must examine carefully what in the workplace could cause harm to
its employees, other employees and other people, including customers, visitors and members
of the public. | en_US |
