Financial planning and performance of medium and small scale enterprises in Uganda :

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Kampala International University, College of Economics and Management
The study was conducted in Kasese District. The research was done under the topic “financial planning and performance of small and medium enterprises” a case study of Nyakatonzi Growers Cooperative Union basing on the following objectives; To establish how financial planning has helped NGCU Ltd to increase its profitability To establish how financial planning has enabled NGCU Ltd. to improve its liquidity. To identify the challenges faced by the management of NGCU Ltd. when conducting financial planning. The study employed both quantitative and qualitative methods of data collection and analysis was also used. Purposive and simple random sampling was used to get a representative sample. The study found out that financial planning increases profitability in Nyakatonzi 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 in organizations. The researcher concluded that, financial planning has helped NGCU Ltd to increase its profitability this was evidenced from the data collected. Findings show that management of NGCU Ltd always carries out financial planning to help in increasing its profitability (by 76.5%), plans are drawn after consulting members (by 76.5%), plans emphasis is making profits every year as a major objective (by 70.6%), the union prepare budgets every year (by 82.4%), financial budgets are from plans of the union (by 73.5%), financial budgets are prepared to ensure the union makes profits every year (by 76.5%), budgets are also prepared after consulting the members (by 76.5%), budgets are evaluated periodically to ensure that the union makes profit (by 73.5%), and the plans and budgets are receive every six months (by 78.8%). Effective financial planning provides reasonable assurance regarding the financial resources of NGCU Ltd.The researcher recommended thai. to increase its profitability through financial planning, the owners/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 agent or academic institution can organize such training and charge some fees to the participant
A research report submitted to the college of economics and statistics in partial fulfillment of the requirements for the award of Bachelor of Economics of Kampala International University, Kampala
Financial planning, small scale enterprises, Nyakatonzi growers, Kasese District