The effect of working capital management on the financial performance of SMEs: a case study of Mbale Municipality, Mbale District

Abstract

The study was on the topic "the effect of working capital management on the financial performance of SMEs (a case study Mbale Municipality). The study objectives were; to identify the various working capital management practices of SMEs, to assess the level of financial performance in SMEs, to establish the relationship between working capital management practices and the level of financial performance. The study used both qualitative and quantitative research design. Data was collected from primary and secondary sources through the use of questionnaire guide, interview guide and observation. The analysis was through the use of frequency, tables and percentages. The findings revealed that there is a significant relationship between working capital management and financial performance of SMEs. The researcher recommended segregation of duties, recording of daily incomes and expenses, incorporation of the use of source documents.