The impact of capital budgeting techniques on financial performance of micro and small business enterprise :

Abstract

The purpose of the study is to investigate the impact of capital budgeting techniques on financial performance of SMES in Pallisa town council. The study is basing on the following 3 objectives;(a) to determine the effect of financial management on financial performance of SMES in Pallisa town council ;(b) to determine the effects of investment appraisal techniques on financial performance of SMES in Pallisa town council and (c) to establish the relationship between financial planning and financial performance of SMES in Pallisa town council. The study was 30SMES selected from 60 registered SMES in Pallisa town council. The sample size of the target population gave 100% response that a concrete result for the study and this helps the researcher to make meaningful conclusions of the study. In regard to capital budgeting techniques towards financial performance of SMES in Pallisa town council, the study found out that capital budgeting techniques in Pallisa town council has a positive correlation of 1.000 towards financial performance of 0.958 of SMEs.