The effect of budgeting on the performance of Small Scale Enterprises A case study of Uganda Micro-Finance Limited (UML) Kampala Uganda.
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Date
2011-03
Authors
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Journal ISSN
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Publisher
Kampala International University, College of Economics and Management Sciences .
Abstract
This study was carried out to investigate on the impact of budgeting on the performance of
small scale businesses. It aimed at achieving the following objectives, to establish the impact
of budgeting on organization performance to identify indicators of performance m
organization and to establish the relationship between budgeting and performance of
organization.
The study was carried out to establish the reasons why many organizations have continued to
perform poorly despite management efforts to improve performance through training,
recruitment, motivation. monitoring and evaluation. This was evidenced by low revenue
collection and overspending compare to planned ones, overdependence of grants from the
government. low morale and commitment of employees, claims and rumors from customers
in respect to poor services offered to them like corruption and bribes.
To collect the relevant data the researcher used questionnaires. interview and library research
on relevant material. Data was analyzed by the use of descriptive methods such as percentage
distribution and ti·equency distribution.
The researcher found out that, budgeting has both positive and negative impacts on the
performance of small scale businesses. under positive includes high profits, and avoids
delays in work reduction. in repair, maintenance costs and increase in relationship with
external stake holders. Negative side it leads to misappropriation of resources. inefficiency
utilization of resources. low profits and low productivity.
According to the researcher's findings. the role played by budgeting in small scale businesses
included, better planning. increase in profit. high production and attain effective utilization of
resources.
The following area were suggested for further study, establishing the magnitude of the
relationship between budgeting and performance. are pertaining budgeting form different
Description
A research report submitted to the Faculty of Business and Management in Partial Fulfillment for the Award of a Bachelor's Degree in Business Administration (Finance Option) of Kampala International
University.
Keywords
Budgeting, Small Scale Enterprises, Effect, Performance, Uganda Micro-Finance Limited, Kampala Uganda