Financial Planning And Performance Of Small And Medium Enterprises In Uganda, A The Case Study Of Suuni Growers Cooperative Union Ltd, Budaka District

ABSTRACT

he study was about financial planning and performance of small and medium enterprise a case

udy of Suuni Growers Cooperative Union. The study was guided by three objectives that are:

o establish how financial planning has helped SGCU Ltd to increase its profitability, to

;tablish how financial planning has enabled SGCU Ltd to improve its liquidity, to identify the

~allenges faced by the management of SGCU Ltd. when conducting financial planning.

case study research design was used where both quantitative and qualitative methods of data

)llection and analysis was also used. Purposive and simple random sampling was used to get a

presentative sample.

he study found out that financial planning increases profitability in Suuni Growers Cooperative

nion; planning, evaluation of performance, for control purpose, continuous comparison of

~tual results against budgets to form a basis of standards and creation of responsibility centers

organizations.

~ie researcher concluded that, financial planning has helped SGCU Ltd to increase its

ofitability this was evidenced from the data collected. Findings show that management of

~CU Ltd always carries out financial planning to help in increasing its profitability (by 80%),

ans are drawn after consulting members (by 73.5%), plans emphasis is making profits every

~ar as a major objective (by 70.6%), the union prepare budgets every year (by 79.4%), financial

idgets are from plans of the union (by 83.4%), financial budgets are prepared to ensure the

lion makes profits every year (by 73.5%), budgets are also prepared after consulting the

embers (by 76.5%), budgets are evaluated periodically to ensure that the union makes profit

y 73.5%), and the plans and budgets are received every six months (by 58.8%). Effective

~ancial planning provides reasonable assurance regarding the financial resources of SGCU Ltd.

~e researcher recommended that to increase its profitability through financial planning, the

vners/managers of the union should undertake courses or training about financial planning and

ofitability or hiring workers with knowledge and skills in accounting and financial

anagement. The government of Uganda or the local government or URA or any other support ;ent or academic institution can organize such training and charge some fees to the participants