Journal
Metropolitan Journal of Academic and Applied Research
MJAAR
The Impact Of Budgeting Practices On The Financial Performance Of Small And Medium Enterprises In Kikuubo, Kampala
Mwesigwa Tonny, Asiimwe Prisca
| Journal | Metropolitan Journal of Academic and Applied Research (MJAAR) |
| Volume / Issue | Vol. 5, No. 6 |
| Published | 30 June 2026 |
| ISSN | 3006-6417 |
Abstract
This study investigated the impact of budgeting practices on the financial performance of small and medium enterprises (SMEs) in Kikuubo, Kampala, Uganda. Using a quantitative descriptive correlational design, data were collected from 115 SME owners and managers through structured questionnaires. Budgeting practices were operationalised through budget preparation process, budget implementation, budget monitoring and control, and budget flexibility. Financial performance was measured through profitability, liquidity management, and revenue growth. Results revealed positive and significant correlations between all budgeting dimensions and financial performance (r ranging from .578 to .671, p < .001). Multiple regression analysis showed that budgeting practices collectively explain 64.5% of the variance in SME financial performance (R² = .645, F(4,110) = 50.11, p < .001). Budget preparation process was the strongest predictor (β = .338, p < .001). The study concludes that robust budgeting practices significantly enhance SME financial performance and recommends that SMEs adopt formal budgeting systems, leverage digital budgeting tools, and engage financial advisory services.
Keywords
Budgeting practices
financial performance
SMEs
Kikuubo
Kampala
Uganda
budget
Cite This Article
Mwesigwa Tonny & Asiimwe Prisca (2026). The Impact Of Budgeting Practices On The Financial Performance Of Small And Medium Enterprises In Kikuubo, Kampala. Metropolitan Journal of Academic and Applied Research, 5(6). https://journals.miu.ac.ug/pages/article.php?article_id=655
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