Browsing by Author "Vanessa Nankabirwa"

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    Financial risk management and sustainability of Small and Medium Enterprises: a case study of Small and Medium Enterprises in Nakasero, Kampala district
    (Uganda Christian University, 2026-04-23) Vanessa Nankabirwa
    This study investigated the relationship between financial risk management and the sustainability of Small and Medium Enterprises (SMEs) in Nakasero, Kampala District. The research was driven by the persistent challenge of high failure rates among SMEs due to inadequate risk identification and mitigation strategies. The specific objectives were to examine the effect of risk identification, assessment, mitigation, and monitoring on the long-term sustainability of these enterprises. A correlational research design was employed, utilizing a quantitative approach to collect data from a sample of 152 SME owners and managers. Data was gathered using structured questionnaires and analyzed using the Statistical Package for Social Sciences (SPSS). Descriptive statistics were used to summarize respondent characteristics, while inferential statistics, including Pearson correlation and multiple linear regression, were used to test the research objectives.There is an evident positive correlation between financial risk management and the sustainability of SMEs. In addition, the use of regression analysis showed that the financial risk managementpractices explain the variations in the sustainability of SMEs in Nakasero. Most firms conduct a simple environmental scan; however, most of them do not have insurance coverage or any funds set aside for emergencies. The study therefore shows that proper financial risk management plays a vital role in determining the performance of businesses. It is therefore advisable that SME owners embrace financial planning and seek appropriate training to develop their skills in financial risk management. Additionally, the study recommends that policymakers and other regulatory bodies devise measures aimed at improving the financial literacy of the owners as well as offering them financial advice to ensure their sustainability.