Financial Management Practices and Small- Scale Businesses' Profitability, from the Viewpoint of Kabale Municipality, Uganda
Loading...
Date
2023-01-10
Journal Title
Journal ISSN
Volume Title
Publisher
Annals of Management and Organization Research (AMOR
Abstract
Purpose: The study's goal was to investigate how financial
management practices impact small businesses' profitability.
Research methodology: Descriptive and correlational research
designs were used in the study. The study used a multi-regression
analysis to estimate how financial management practices impact
profitability.
Results: The research showed that financial management
strategies had a big effect on profitability. Management of working
capital and cash has a substantial correlation with profitability,
according to the evidence. The study suggests that in order to see
improvements in their profitability levels, small businesses should
establish strong financial management methods. Owners of small
businesses must pay close attention to the dynamics of their
working capital and cash management because these factors have a
significant impact on their profitability levels. To balance
operating costs and profitability, small firms should think about
cost-cutting measures.
Limitations: This study was only conducted within Kabale
Municipality and future studies should be conducted in the entire
region.
Contribution: The study identified a trio of factors – operational
expenses, microeconomic factors, and individual characteristics
that constrain profitability
Description
Keywords
Financial Management Practices, Cash Management, Working Capital Management, Profitability, Small Scale Enterprises