Journal
Metropolitan Journal of Academic Multidisciplinary Research
MJAMR
Effect Of Budgeting Policy On Financial Performance On Small Sized Enterprise In Nansana Municipality, Wakiso District
Katumba Allan, Magala Muhammed
| Journal | Metropolitan Journal of Academic Multidisciplinary Research (MJAMR) |
| Volume / Issue | Vol. 4, No. 12 |
| Published | 31 December 2025 |
| ISSN | 3006-4384 |
| DOI | https://doi.org/10.68598/mjamr.527 |
Abstract
The study examined the effect of budgeting policy on financial performance of small-sized enterprises in Nansana Municipality, Uganda. Using a descriptive correlational research design, data was collected from 95 small enterprise owners and managers through structured questionnaires and analyzed using SPSS version 25. The findings revealed a significant positive effect (r=0.734, p<0.01) of budgeting policy on financial performance. Regression analysis demonstrated that budgeting policy explained 53.9% of variance in financial performance (R²=0.539). The study concluded that comprehensive budgeting practices, including budget preparation, implementation, monitoring, and control, substantially improved revenue generation, cost management, profitability, cash flow stability, and overall financial performance of small enterprises. Recommendations included mandatory budgeting training for small enterprise owners, simplified budgeting tools tailored to SME contexts, government support programs promoting budgeting culture, access to affordable financial management software, and strengthened business development services focusing on budgeting competencies.
Keywords
Budgeting policy
financial performance
small enterprises
SMEs
budget planning
budget
Cite This Article
Katumba Allan & Magala Muhammed (2025). Effect Of Budgeting Policy On Financial Performance On Small Sized Enterprise In Nansana Municipality, Wakiso District. Metropolitan Journal of Academic Multidisciplinary Research, 4(12). https://doi.org/10.68598/mjamr.527
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