Journal
Metropolitan Journal of Academic Multidisciplinary Research
MJAMR
The Impact of Budgeting Practices on the Financial Performance of Small and Medium Enterprises in Kikuubo, Kampala, Uganda
Mwesigwa Tonny, Asiimwe Prisca
| Journal | Metropolitan Journal of Academic Multidisciplinary Research (MJAMR) |
| Volume / Issue | Vol. 5, No. 8 |
| Published | 31 August 2026 |
| ISSN | 3006-4384 |
Abstract
This study examined the impact of budgeting practices on the financial performance of small and medium enterprises (SMEs) in Kikuubo, Kampala's busiest commercial hub. Budgeting is a central instrument of financial planning and control through which enterprises allocate resources, monitor performance, and pursue profitability, yet many SMEs operate with informal or weak budgeting. The study investigated how budget planning, budgetary control, budget participation, and budget monitoring relate to financial performance. A cross-sectional survey design with a mixed- methods approach was adopted, and data were collected from 175 respondents comprising SME owners, managers, and finance staff using structured questionnaires and interviews. Descriptive statistics, Pearson correlation, and structural (path) analysis were used. The results revealed a strong positive and significant relationship between budgeting practices and financial performance (r = 0.68, p < 0.01), with the practices jointly explaining 66.0% of the variance in financial performance (R² = 0.660). Budgetary control (β = 0.33) and budget planning (β = 0.30) emerged as the strongest path predictors. The study concludes that sound budgeting practices significantly enhance SME financial performance and recommends strengthening budgetary control, budget planning, and participation.
Keywords
budgeting practices
financial performance
SMEs
budgetary control
budget planning
Kikuubo
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, Uganda. Metropolitan Journal of Academic Multidisciplinary Research, 5(8). https://journals.miu.ac.ug/pages/article.php?article_id=772
More in This Issue
View full issue →
6
Factors Affecting Adherence to Antiretroviral Therapy among HIV Clients at Kabale Regional Referral Hospital, Kabale District, Uganda
ART adherence
HIV
patient factors
health-system factors
7
Factors Influencing Utilization of Family Planning Services among Women of Reproductive Age at Kisenyi Health Centre IV, Kampala District, Uganda
family planning
service utilization
women of reproductive age
knowledge
8
Financial Management Practices and Business Sustainability of Manufacturing Firms in Nakawa Division, Kampala, Uganda
financial management
business sustainability
working capital
financial planning
9
Institutional Quality, Remittance Inflows and Health Outcomes: Evidence from the Five Most Remittance-
CS-ARDL
Health Indicators
Institutional Quality
Remittances
10
Internal Auditing and Fraud Prevention in Organizations: A Case Study of Metropolitan International University, Uganda
internal auditing
fraud prevention
internal control system
audit independence