Financial management and growth of selected business enterprises in Makindye division ,Kampala District, Republic of Uganda
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Date
2012-10
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Kampala International University, College of Economics and Management
Abstract
The study intended to establish the relationship between financial management and growth of selected business enterprises in Makindye Division, Kampala District. It was guided by four objectives which included determining; the demographic characteristics of respondents, the level of financial management , the level of growth of selected business and the significant relationship in level of financial management and growth of a business enterprise in Makindye Division. Researcher made questionnaire was used to collect data from 278 respondents selected purposively. A descriptive correlational, cross- sectional and export-facto design were used. Data analysis was done using frequencies, percentages, means, and Pearson linear correlation coefficiency (PLCC). The findings indicated that most respondents were male (52.5%) aged 40-59 years, had master’s degree(48.9%), most businesses had 6-10 employees (39.6%) , mostly hardware (24.1%), majority had spent 4-6 years(71.9%). All aspects of financial management were found to be High for example investment decisions (mean=3.24), Finance decisions (mean=3.18), Dividend decisions (mean=3.10), Liquidity decisions (mean=3.12), Working capital decisions (mean=3.17) and overall (mean=3.16). All aspects of growth of selected business enterprises were found to be High for example, revenue growth (mean=3.10), number of customer (mean=3.16), re-investment (mean=3.12), utilization of funds (mean=3.17), asset management (mean=3.15), shareholder’s value (mean=3.08), employee skills (mean=3.14) and overall (mean=3.13). All aspects of financial management were found to be positively and in significantly correlated with growth of the selected business enterprises for example investment decisions (r=0.284, sig=0.460), finance decision (r=-.479, sig=0.336), dividend decisions (r=-389, sig=0.485), liquidity decision (r=0.514, sig=0.297) and working capital (r=0.588, sig=0.058). The researcher recommended, that care should be taken for investment, finance, dividend, liquidity, and working capital in an enterprise, ensure regular and adequate supply of funds ; safety on investment have sound capital structure; estimation of capital requirements ; ensuring a reasonable balance between outflow and inflow of ;revisit your business plan, delegate to time consuming tasks; seek for advice from properly qualified people; ensure that all shareholders have an opportunity to present their views; provide asset oversight and anticipate growth and lease an initial space that will accommodate plenty of future growth. if is to cope-up with growth in line with training the workforce, carefully research a particular financial vehicle which carries out one’s financial goals and check out the specific investment offered. Thus, your company’s finances are not just assets; they are also the foundation for longevity and growth. Good financial management helps your organization survive a fluctuating economy, gives you an advantage over competitors and provides the resources to support a strong workforce. If you consider your finances in every decision and at every step of your company’s growth, you can provide a solid future for the organization and its employees
Description
A thesis presented to the College of Higher Degrees and Research of Kampala International University Kampala, Uganda in partial fulfillment of the requirement for the award of the degree of Masters of Business Administration, Banking and Finance
Keywords
Financial management and growth, Business enterprises, Makindye division,Kampala