The relationship between managerial competence and financial performance :

Abstract

This study aims to evaluate relationship between managerial behavior and financial performance of SMEs on R and T Enterprise in Pallisa district in Uganda. The study was induced by managerial competences experienced by the accountants, employees and clients in R and T Enterprise. The study had the following major objectives such as the relationship between managerial behavior and financial performance, relationship between managerial communication and financial performance and relationship between domain knowledge and financial performance of SMEs. Data was collected using questionnaires and an interview guide which showed a very positive relationship between managerial competence and financial performance. A sample of 39 respondents was used in the study from the target population of 48. Closed ended self- administered questionnaires were utilized in collecting data from the field. Data collected was analyzed using descriptive statistics (frequencies and percentages) using SPSS. The findings were then being presented in the form of tables. The study concludes that there is a positive relationship between managerial competence and financial performance and the managers should be able to recruit competent workers in order to improve on their financial performance. The study recommended that the employees of the organization should have enough skills needed in financial performance, should provide relevant information in order to improve on their knowledge and employees should improve on the skills in order to enhance financial performance in SMEs.