Management Information Systems and Performance of Small and Medium Enterprises Case Study: Nateete Market

Abstract

The major objective of this study was to examine the effect of management information systems on the performance of Small Medium Enterprises in Uganda (a case study of Nateete market). The specific objectives are; to find out the role played by market research in the performance of Small Medium Enterprises; to identify challenges facing small and Medium Enterprises; to identify and establish procedures for risk management and performance of Small and Medium Enterprises; and to examine the role of Management Information System on performance of management in the Small and Medium Enterprises. A descriptive research design was used to conduct the study with a sample size of 80 respondents. Various data collection instruments were used in this study and these include; questionnaires and interview guide.

The findings revealed that there is a positive correlation between management information system and the performance of Small and Medium-sized Enterprises (SMEs). Management information systems are seen to be strongly and positively correlated with performance (profitability, growth and sustainability). A positive relationship is further observed between management information systems and all the other dependent variable indicators namely, profitability, growth and sustainability. The regression results show that, when management information systems values are zero, profitability, growth and sustainability value would be positive. From the study it can be concluded that management information systems strongly affect performance of Small and Medium-sized Enterprises (SMEs) in Uganda. Based on the findings of the, the researcher found in the field where management information systems had a strong and significant relationship with business growth, profitability and sustainability.

The researcher recommends that since lack of management information systems greatly affects the performance of their businesses in terms of sustainability, profitability and business growth. Therefore, it is recommended that the business owners should incorporate Management Information Systems (MIS) for better business operations as well as effectiveness and efficiency. Small and Medium-sized Enterprises (SMEs) should develop and organize constant seminars and workshops to train and educate employees on mechanisms for mitigation of critical risks which have affected the performance of firms. The owners of Small and Medium-sized Enterprises (SMEs)should learn how to develop budgets using good Management Information Systems (MIS) and incorporate them in their businesses to monitor and allocate resources used in different periods of time so as to effectively improve the performance of Small and Medium-sized Enterprises (SMEs).

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