The Effect of Budgeting On the Performance of Micro-Finance Institutions: A Case Study of Uganda Micro-Finance Limited (UML) Kampala Uganda
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Date
2011-05
Authors
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Kampala International University, bachelors degree in business administration
Abstract
This study was carried out to investigate on the effect of budgeting on the performance of
micro finance institutions. It aimed at achieving the following objectives, to establish the
impact of budgeting on micro finance institutions performance to identify indicators of
performance in micro finance institutions and to establish the relationship between budgeting
and performance of micro finance institutions.
The study was carried out to establish the reasons why many micro finance institutions 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 compared 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 micro finance institutions, 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 micro finance
institutions 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 of micro finance institutions, examining the
influence of culture on performance of micro finance institutions.
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
Budgeting On the Performance of Micro-Finance Institutions, Uganda Micro-Finance Limited (UML)