Financial management and growth of small and medium enterprises (SMEs) in Pallisa district.

Abstract

This study examined on the effect of financial management on growth of SMEs in Pallisa District. The study applied a cross sectional research design and descriptive approach. Data were collected from 45 as a target population with accessible unit of inquiry being 40 respondents. Data were collected with the aid of a closed ended questionnaire and statistical package for social sciences was used for analyzing data from which frequency tables, descriptive statistics, reliability, validity, correlation and regression results were obtained. The study findings revealed that there is a positive and significant effect between accounting information system and growth of SMEs, financial reporting and growth, and working capital management on growth of SMEs. The study therefore recommends that to improve on growth of SMEs, there is need of a proper working capital management, and adopting a proper accounting information system, with a proper reporting system.