THE NEXUS BETWEEN BUDGETING AND PROFITABILITY OF SMALL-SCALE BUSINESSES IN NAKASERO MARKET, CENTRAL DIVISION, KAMPALA CITY, UGANDA

Auteurs-es

  • Richard Wemesa Dr., Department of Education Management and Foundations, Maseno University, Kisumu, Kenya Department of Applied Business Administration, Cornerstone University Uganda, Bweyogere, Wakiso, Uganda Department of Research & Consultancy, The Uganda Institute of Banking and Financial Services, Kampala, Uganda Dr., Department of Management Sciences, King Ceasor University, Kampala, Uganda Department of Business Administration, UNICAF University, Kampala, Uganda
  • Brian Kato Department of Applied Business Administration, Cornerstone University Uganda, Bweyogere, Wakiso, Uganda
  • Sabiiti Mulema Department of Management Sciences, King Ceasor University, Kampala, Uganda
  • Oyo Samson Department of Management Sciences, King Ceasor University, Kampala, Uganda
  • Ivan Bakaki Department of Management Sciences, King Ceasor University, Kampala, Uganda
  • Christopher Wagima Department of Management Sciences, King Ceasor University, Kampala, Uganda
  • Keneth Nizeyimana Department of Management Sciences, King Ceasor University, Kampala, Uganda
  • Brian Mugisha Department of Management Sciences, King Ceasor University, Kampala, Uganda
  • Philip Byaruhanga Department of Management Sciences, King Ceasor University, Kampala, Uganda

DOI :

https://doi.org/10.46827/ejefr.v10i2.2180

Mots-clés :

budgeting, profitability, small-scale business

Résumé

The study aimed to investigate the nexus between budgeting and the profitability of small-scale businesses in Nakasero Market, Central Division, Kampala City. The study adopted a cross-sectional survey research design, utilizing both qualitative and quantitative approaches. A sample size of 175 respondents, comprising small-scale business owners and traders, was selected using simple random and purposive sampling techniques. Data was collected using structured questionnaires and analyzed using descriptive and inferential statistical methods, including correlation analysis. Findings of the study revealed that budgeting significantly influences profitability, with 66.9% of respondents preparing budgets before making expenditures and 76.0% indicating that budgeting helped them control unnecessary expenses. The correlation analysis showed a strong positive relationship between budgeting and profitability (r = 0.632, p = 0.000). The study recommends that the government implement financial literacy programs for small business owners, that financial institutions provide accessible training on budgeting and financial planning, and that business owners adopt digital financial management tools to improve efficiency.

 

JEL: D53, E44, F45, G20

Biographies de l'auteur-e

  • Richard Wemesa, Dr., Department of Education Management and Foundations, Maseno University, Kisumu, Kenya Department of Applied Business Administration, Cornerstone University Uganda, Bweyogere, Wakiso, Uganda Department of Research & Consultancy, The Uganda Institute of Banking and Financial Services, Kampala, Uganda Dr., Department of Management Sciences, King Ceasor University, Kampala, Uganda Department of Business Administration, UNICAF University, Kampala, Uganda

    Dr. Richard Wemesa is a senior researcher at Maseno University, Kisumu, Kenya. He earned a PhD in Planning and Economics of Education. His current research areas focus on Parametric Analysis, Econometric Modelling and Analysis, Applied Business Modelling, Planning and Economic Applications. He is an active member of ResearchGate.

  • Brian Kato, Department of Applied Business Administration, Cornerstone University Uganda, Bweyogere, Wakiso, Uganda

    Mr. Brian Kato serves as the academic Registrar, Cornerstone university Uganda. His research interests lie in strengthening student support systems and enhancing the quality of education.

  • Sabiiti Mulema, Department of Management Sciences, King Ceasor University, Kampala, Uganda

    Dr. Sabiiti Mulema is a senior lecturer at King Ceasor University, Department of Management Sciences. He earned his PhD in Business Management. His research focus pinned to Business Management, Entrepreneurship and Social Economics Development.

  • Oyo Samson, Department of Management Sciences, King Ceasor University, Kampala, Uganda

    Mr. Oyo Samson, Lecturer, King Ceasor University, and a PhD candidate at Gulu University. His research interests lie in the space of Accounting and Finance.

  • Ivan Bakaki, Department of Management Sciences, King Ceasor University, Kampala, Uganda

    Mr. Bakaki Ivan Lecturer, King Ceasor University and a PhD candidate at Maseno University, Kisumu, Kenya. Her research interests lie in the space of Human Resource Planning and Management.

  • Christopher Wagima, Department of Management Sciences, King Ceasor University, Kampala, Uganda

    Mr. Christophe Wagima, Lecturer at King Ceasor University, and PhD Candidate at Maseno University, Kisumu, Kenya. His research interests lie in the space of Econometric Modeling and Analysis.

  • Keneth Nizeyimana, Department of Management Sciences, King Ceasor University, Kampala, Uganda

    Mr. Keneth Nizeyimana is an MBA Candidate at Nkumba University, King Ceasor University and Uganda Management Institute/UMI with research Interests in Business, Finance, Planning and Management.

  • Brian Mugisha, Department of Management Sciences, King Ceasor University, Kampala, Uganda

    Mr. Keneth Nizeyimana is an MBA Candidate at Nkumba University, King Ceasor University and Uganda Management Institute/UMI with research Interests in Business, Finance, Planning and Management.

  • Philip Byaruhanga, Department of Management Sciences, King Ceasor University, Kampala, Uganda

    Mr. Philip Byaruhanga is an MBA Candidate at Nkumba University, King Ceasor University and Uganda Management Institute/UMI with research interests in Business, Finance, Planning and Management.

Références

Ahmed, M., & Hassan, T. (2021). Budgeting practices and financial management challenges among small businesses in Nigeria. Journal of Financial Studies, 9(2), 89-104.

Creswell, J.W. (2018). Research Design: Qualitative, Quantitative and Mixed Methods Approaches 2nd Edition. Retrieved from https://books.google.ro/books/about/Research_Design.html?id=KGNADwAAQBAJ&source=kp_book_description&redir_esc=y

Kimani, J., Otieno, S., & Wanjiru, L. (2020). Budgeting techniques and profitability of small retail businesses in Nairobi, Kenya. Journal of Business & Economic Research, 12(1), 90-108.

Mwesigwa, P., Kalema, J., & Okello, T. (2022). The effect of budgeting on business sustainability among small traders in Kampala, Uganda. Uganda Journal of Business Studies, 10(1), 66-79.

Opio, K., & Nakato, H. (2023). Budgeting and tax compliance among small market vendors in Uganda. East African Journal of Finance & Taxation, 11(2), 45-58.

Smith, K., & Osei, M. (2019). Budgeting and financial performance in small enterprises: A study of Ghanaian SMEs. Ghana Journal of Business Management, 14(1), 34-50.

Zhao, L., Chen, X., & Wu, Y. (2023). The impact of digital budgeting tools on small business profitability in China. Asian Journal of Financial Technology, 20(2), 99-115.

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Publié

2026-04-01

Numéro

Vol. 10 No. 2 (2026)

Rubrique

Articles