The effect of budgeting on the performance of small scale enterprises: a case study of Uganda Microfinance Limited (UML) Kampala Uganda
Loading...
Date
2011-03
Authors
Journal Title
Journal ISSN
Volume Title
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 in 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, over dependence 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
frequency 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 organization to make a comparison and examining the influence of culture on performance of small businesses.
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 (Accounting option) of Kampala International University
Keywords
Small scale enterprises, Budgeting, Performance, Uganda Microfinance Limited (UML), Kampala Uganda