Management Practices and Growth of Micro Enterprises in Mukono Municipality. A Case Study of Buguju Trading Center
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Date
2025-05-26
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Uganda Christian University
Abstract
This study explores the impact of managerial practices on the growth of micro enterprises in Buguju Trading Center, located within Mukono Municipality, Uganda. Micro enterprises play a crucial role in the local economy through job creation and poverty alleviation. However, despite being extremely important, the majority of micro enterprises experience managerial practice issues that can impact their growth and sustainability. The purpose of this research is to determine how various management practices—specifically financial management, and customer relationship management (CRM)—influence the growth of such businesses.
Conducting the data gathering among the owners of the micro enterprises only, the study employed mixed qualitative and quantitative methods. Stratified sampling technique was used to select participants who belonged to various sectors of businesses of the trading center to get a representative cross-section of opinion. Some of the most prominent research questions examine the implementation and effectiveness of management practices, the challenge micro enterprises face in adopting formal management systems, and whether these practices are linked with business performance measures such as customer retention, sales growth, and profitability. According to the study, good management practices, particularly financial planning and customer relationship management, contribute positively to business growth. Yet, factors such as limited finances, poor formal education, and informal business tactics hinder the capacity of micro businesses to maximize on these practices. The research makes conclusions on what policy makers and business development institutions can do to support micro enterprises in Buguju Trading Center by offering specific assistance in the areas of training, financial service access, and infrastructural development to build the capacity of the micro enterprises to embrace and apply management practices that spur growth. This study contributes to the body of work on micro enterprises in developing economies and offers practical suggestions for enhancing business management practices for economic development in Uganda's local trading centers.
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Undergraduate