Managerial Skill and Book Keeping Practices in Small-Scale Business. A Case Study: Industrial Division Mbale Municipality

TABLE OF CONTENTS

Cover page ...................................................................................................................................... ii

Title page ........................................................................................................................................ ii

Declaration ..................................................................................................................................... iii

Approval ........................................................................................................................................ iv

Dedication ....................................................................................................................................... v

Aclmowledgement ......................................................................................................................... vi

Table of Contents .......................................................................................................................... vii

List of Tables .................................................................................................................................. x

List of Figures ................................................................................................................................. x

List of Abbreviation ...................................................................................................................... xii

Abstract ........................................................................................................................................ xiii

CHAPTER ONE: GENERAL INTRODUCTION

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

1. 1 Background of the Study .................................................................................................. I

1.2 Statement of the Problem ................................................................................................. 3

1.3 Objectives of the Study .................................................................................................... 4

1.3.1 Major Qbjective ............................................................................................................... 4

vii

1.3.2 Specific Qbjectives .......................................................................................................... 4

1.4 Research Questions ........................................................................................................... 4

1.5 Scope of the Study ............................................................................................................ 5

1.6 Significance of the Study .................................................................................................. 5

1.7 Justification ....................................................................................................................... 5

1.8 Definition of Key Terms ................................................................................................... 6

1.9 Conceptual framework ...................................................................................................... 7

CHAPTER TWO: LITERATURE REVIEW

2.0 Introduction ....................................................................................................................... 8

2.1 Effects of technical skills on book keeping ...................................................................... 8

2.2 Effects of conceptual skills on book keeping ................................................................. 12

2.3 Relationship between managerial skills and book keeping ............................................ 15

CHAPTER THREE: RESEARCH METHODOLOGY

3.0 Introduction ..................................................................................................................... 19

3.1 Research Design .............................................................................................................. 19

3.2 Area of the Study ............................................................................................................ 19

3.3 Study Population ............................................................................................................ 19

3.4 Sampling Procedures ..................................................................................................... 20

3.4.1. Sample Size .................................................................................................................... 20

3.4.2 Sampling Techniques ..................................................................................................... 21

viii

3.5 Data Collection Methods and Instruments ...................................................................... 21

3.6 Quality Control Methods ................................................................................................. 21

3.7 Data Management and Processing ................................................................................... 21

3.8 Data Analysis ................................................................................................................... 22

3.9 Ethical Considerations ..................................................................................................... 22

3.10 Limitations of the Study ................................................................................................... 22

CHAPTER FOUR: PRESENTATION, ANALYSIS AND DISCUSSION OF FINDINGS

4.0 Introduction ...................................................................................................................... 23

4.2 Effect of Technical Skills on Book keeping .................................................................... 26

4.3 Effect of Conceptual Skills on Book keeping .................................................................. 33

4.4 Relationship between Managerial Skills and Book keeping ............................................ 44

CHAPTER FIVE: SUMMARY, CONCLUSIONS AND RECOMMENDATION

5.0 Introduction ...................................................................................................................... 45

5.1 Summary of Findings ....................................................................................................... 45

5.2 Conclusions ...................................................................................................................... 47

5.3 Recommendation ............................................................................................................. 47

References ..................................................................................................................................... 48

Appendix A ................................................................................................................................... 53

Appendix B ................................................................................................................................... 53

ABSTRACT The study aimed at determining the influence of managerial skills on book keeping practices in Small Scale Businesses to answer the following questions; i) What effect do technical skills have on bookkeeping in the Small Scale Businesses? ii) What effect do conceptual skills have book keeping in small-scale businesses? iii) What relationship exists between managerial skills and book keeping? A qualitative research design was adopted to elicit the effect and relationship between managerial skills and book keeping practices in Small Scale Businesses. 45 respondents were systematically sampled; data was obtained using self-administered questionnaires and analyzed using descriptive statistics from Excel package. Research findings revealed that majority 69.95% and 85.84% of respondents in Small Scale Businesses practice technical and conceptual skills respectively but this has little influence on book keeping as only 41.9% do practice. It was further revealed that Small Scale Businesses owners/managers have more of the conceptual skills than the technical skills as indicated by a variation of 15.85%. Study findings derived from Pearson's correlation indicated a moderately positive relationship between managerial skills and book keeping. 33.6% (0.582 ) of the variation in managerial skills is explained by book keeping practices.