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Business Risk Management, Capital Structure And Financial Performance of Small and Medium Enterprises (Sme’s) Under Uganda Women Entrepreneurs’ Association Limited (UWEAL)

The study examined the effect of business risk management and capital structure on the financial performance of Small
and Medium Enterprises (SMEs) under the Uganda Women Entrepreneurs’ Association Limited (UWEAL). The research
employed a cross-sectional design using both analytical and descriptive methods to collect data at a single point in time
from 108 SMEs selected from a population of 157 registered under UWEAL in Nakawa Division, Kampala. Primary data
were obtained using self-administered questionnaires, while secondary data were sourced from published reports and
literature. Data were analyzed using SPSS, and findings were presented through correlation and regression analysis. The
correlation analysis revealed a statistically significant positive relationship between business risk management and
financial performance (r = .193**, p < 0.01), with strong internal linkages between the components of risk identification,
assessment, and mitigation. Regression results showed that business risk management significantly predicted financial
performance (β = .206, p = .031), accounting for 19.9% of the variance (R² = 0.199). However, capital structure did not
have a statistically significant effect on financial performance (β = .097, p = .306), although it showed a weak positive
relationship. It was concluded that effective business risk management had a significant impact on enhancing financial
performance among SMEs, while capital structure played a less influential role. The study recommended that SMEs under
UWEAL adopt structured risk management practices such as continuous risk identification, assessment, monitoring, and
mitigation to enhance financial stability and sustainability. Additionally, the study suggested that training and policy
support in risk management should be strengthened for women entrepreneurs to boost their decision-making capabilities
and enterprise growth. Future research was advised to explore other variables that may influence SME performance,
including innovation, market access, and digital adoption.
Keywords: Business Risk Management, Capital Structure, Financial Performance, Small and Medium
Enterprises, Uganda Women Entrepreneurs’ Association Limited (UWEAL), SMEs, Risk Mitigation, Financial
Sustainability.

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