Record Keeping and Financial Performance of Small and Medium Scale Enterprises; A Case of Western Division Fort Portal Municipality

ABSTRACT I intend to study the role of record keeping and financial performance of small and medium enterprises in foti patial municipality Western division. Despite the effort made to promote their financial performance through proper documentation, and the fact that financial record keeping exists in small and medium enterprises, it has been found out that even business that keep financial records have failed to succeed in business due to the fact that business owners do not review their records and analyze their financial position, a factor that affects the financial performance of small and medium. This research therefore has found out the various records kept by small and medium enterprises in fort portal municipality west division, to determine the other factors that affect financial performance of small and medium enterprises in fort-portal municipality west division and assessed the relationship between record keeping and financial performance of small and medium enterprises in foti potial municipality west division. This repoti will be prepared in both qualitative and quantitative form of data analysis. The study will use purposive method to sample the respondents. The population for the researchers' study will comprise the owners and employees of the shops, saloons, restaurants, bars, mini supermarkets. Hardware, shops; among others.

 TABLE OF CONTENTS 

DECLARATION ........................................................................................................... i 

APPROVAL ................................................................................................................. ii 

DEDICATION ............................................................................................................. iii 

ACKNOWLEDGEMENT ........................................................................................... iv 

LIST OF ABREVIATIONS ......................................................................................... v 

ABSTRACT ................................................................................................................ ix 

TABLE OF CONTENTS ............................................................................................ vi 

CHAPTERONE ........................................................................................................... l 

1.0 Introduction ............................................................................................................. I 

1.2 Problem statement .................................................................................................. 3 

1.3 purpose of the study ................................................................................................ 4 

1.4 Objectives of the study ........................................................................................... 4 

1.5 Research questions .................................................................................................. 4 

1.6 Scope of the study ................................................................................................... 5 

1.7 Hypothesis .............................................................................................................. 5 

1.8 significance of the study ......................................................................................... 5 

1.9 The conceptual framework ..................................................................................... 6 

CHAPTER TWO .......................................................................................................... 7 

LITRELERA TURE REVIEW ..................................................................................... 7 

2.0 Introduction ............................................................................................................. 7 

2.1 Nature of record keeping and financial performance of small and medium 

enterprises ..................................................................................................................... 7 

2.2 Types of records kept in small and medium enterprises ........................................ 8 

2.3 Factors affecting financial performance of small and medium enterprises .......... 10 

2.4 The relationship between record keeping and financial performance of small 

and medium enterprises .............................................................................................. 12 

CHAPTER THREE .................................................................................................... 14 

RESEARCH METHODOLOGY .............................................................................. 14 

3.1 Introduction ........................................................................................................... 14 

3 .2 Research Design ................................................................................................... 14 

3.3. Population of the study ........................................................................................ 14 

3.4 Sample Size .......................................................................................................... 15 

3.5 Sampling Techniques ............................................................................................ 15 

3.6 Data Sources ......................................................................................................... 15 

3.6.0 Research insh·uments ......................................................................................... 16 

3.6.1 Questionnaires ................................................................................................... 16 

3.6.2 Documentary review .......................................................................................... 16 

3 .6.3 Interviews .......................................................................................................... 16 

3.6.4 Validity and reliabi!ity ....................................................................................... 16 

3.6.5 Data Collection Procedures ............................................................................... 17 

3.6.6 Data analysis ...................................................................................................... 17 

3.6.7 Limitation of the study ...................................................................................... 18 

CHAPTER FOUR ...................................................................................................... 19 

PRESENTATION AND ANALYSIS OF RESEARCH FINDINGS ........................ 19 

4.1 Introduction ........................................................................................................... 19 

4.2 Analysis of the Response Rate and Descriptive Statistics .................................... 19 

4.3 Management skills and financial performance ..................................................... 22 

4.4 Accounting Records kept by SMEs ..................................................................... 23 

4.5 Challenges faced by the Entrepreneurs in record keeping .................................. 26 

4.6 Attitude of SMEs Operators towards Recordkeeping .......................................... 27 

CHAPTER FIVE ........................................................................................................ 31 

SUMMARY, CONCLUSION AND RECOMMENDATIONS ................................ 31 

5.1 Introduction .......................................................................................................... 31 

5.2 Summary .............................................................................................................. 31 

5 .2.1 Management skills and financial performance .................................................. 31 

5.2.2 Types of records kept by MSEs ......................................................................... 32 

5.2.3 Attitude and customer care towards record keeping on business financial 

performance ................................................................................................................ 32 

5.3 Conclusion ............................................................................................................ 32 

5.4 Recommendations ............................................................................................ 33 

5.4.1 Objective one ..................................................................................................... 33 

5.4.2 Objective two ..................................................................................................... 33 

5.4.3 Objective three ................................................................................................... 34 

5 .5 Suggestions for fmiher studies ............................................................................. 34 

REFERENCES ........................................................................................................... 35 

APPENDICES ............................................................................................................ 37