The Impact of Financial Management Practices on the Performance of Small and Medium Size Enterprises in Adjumani Town Council

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Date

2025-05-13

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Uganda Christian University

Abstract

The study investigated the impact of financial management practices on the performance of small & medium enterprises in Adjumani town council. the study was guided by the following objectives; to Examine the impact of bookkeeping on the performance of small and medium-sized enterprises, to Examine the influence of financial planning on the performance of small and medium-sized enterprises and to Examine the impact of working capital management on the performance of small and medium-sized enterprises in Adjumani Town Council. The research design employed for this study was across-sectional survey design taking on quantitative approach. The correlation analysis revealed that performance of the SME had a positive correlation with book keeping, with a Pearson correlation coefficient of r= 0.105, Performance of SME has also shown a positive correlation with financial planning with a Pearson correlation coefficient of r= 0.215, significant at the 0.01 level (p = 0.002), and SMEs performance also had positive correlation with working capital management indicated by a Pearson correlation coefficient of r= 0.274, significant at the 0.01 level (p = 0.001).. The financial management practices were responsible for 35.2% variation in the performance of the SMEs at Adjumani. It was concluded that financial management practices had significant influence on the performance of small & medium enterprises in Adjumani town council.

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Undergraduate

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