Financial Management And Profitability Among Smes A Case Study Of Makindye Division, Kampala Uganda

ABSTRACT

The purpose of the study was to examine the effect of financial management on

profitability among SMEs in Makindye Division, Kampala Uganda. The specific objectives

were; to examine the effect of working capital management on profitability of SMEs in

Makindye Division, Uganda, to determine the effect of internal control systems on

profitability of SMEs and to examine the relationship between financial management

and profitability among SMEs in Uganda. The study employed a descriptive correlation

and cross sectional survey design. A target population of 310 but it was zeroed down

to a sample size of 200 respondents. The study used primary data and the

questionnaire was the tool of data collection. Data analysis in this study was done

through frequency, means, regression and correlation analysis. The study indicates a

positive association between working capital management and profitability and a

significantly positive relationship between internal control and profitability. The findings

of this study therefore confirm the traditional view of efficient working capital

management and its effects on profitability, results indicate that the sig value is

(0.000