Financial planning and performance of small and medium enterprises in Uganda:
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Date
2019-10
Authors
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Publisher
Kampala International University, College of Economics and Management
Abstract
The study was about financial planning and performance of small and medium enterprise a case study of Suuni Growers Cooperative Union. The study was guided by three objectives that are: To establish how financial planning has helped SGCU Ltd to increase its profitability, to establish how financial planning has enabled SGCU Ltd to improve its liquidity, to identify the challenges faced by the management of SGCU Ltd. when conducting financial planning. Case study research design was used where both quantitative and qualitative methods of data collection and analysis was also used. Purposive and simple random sampling was used to get a presentative sample. The study found out that financial planning increases profitability in Suuni Growers Cooperative union; planning, evaluation of performance, for control purpose, continuous comparison of actual results against budgets to form a basis of standards and creation of responsibility centers organizations.
The researcher concluded that, financial planning has helped SGCU Ltd to increase its profitability this was evidenced from the data collected. Findings show that management of ~CU Ltd always carries out financial planning to help in increasing its profitability (by 80%), ans are drawn after consulting members (by 73.5%), plans emphasis is making profits every are as a major objective (by 70.6%), the union prepare budgets every year (by 79.4%), financial budgets are from plans of the union (by 83.4%), financial budgets are prepared to ensure the lion makes profits every year (by 73.5%), budgets are also prepared after consulting the embers (by 76.5%), budgets are evaluated periodically to ensure that the union makes profit 73.5%), and the plans and budgets are received every six months (by 58.8%). Effective financial planning provides reasonable assurance regarding the financial resources of SGCU Ltd. ~e researcher recommended that to increase its profitability through financial planning, the managers of the union should undertake courses or training about financial planning and profitability or hiring workers with knowledge and skills in accounting and financial management. The government of Uganda or the local government or URA or any other support; ent or academic institution can organize such training and charge some fees to the participants
Description
A Dissertation Submitted to the College of Economics and Management in Partial Fulfillment of the Requirements for the Award of Bachelor of Business Administration of Kampala International University
Keywords
Financial planning, Small and medium enterprises, Uganda, Suuni Growers Cooperative Union Ltd, Budaka District