The Relationship Between Management Practices and the Performance of Small and Medium Enterprises (Smes) in Uganda. a Case Study of Small and Medium Enterprises of Nateete Zone in Rubaga Division of Kampala District in Uganda

Abstract

This study focuses on the determination of the relationship between management practices which are measured by; planning, organizing and controlling and the performance of Small Scale and Medium Enterprises (SMES) which is predicted by sales or turnover, efficiency and effectiveness of SMEs in Nateete division, Kampala district in Uganda. Data was collected through a survey with a population of 300 respondents from which a sample of 171 was undertaken and personally administered questionnaires were used to collect responses. Measurement of the relationships of the study were done and subjected to rigorous data processing and analysis using the relevant statistical computer software packages.

Findings indicated that there were positive and significant relationships between management practices and performance of SMES. From the mean and standard deviation analysis, it was revealed that management practices as the stronger predictor of performance of SMEs. In conclusion, the findings revealed that all the independent variables of planning, organizing and controlling were significant predictors of the performance of SMEs firm hence management practices were so important in improving firm performance in SMEs.

It is recommended that, other factors which were not part of the model be used to study firm performance in SMEs and or in other sectors. Likewise, Small scale and Medium Enterprises in Uganda should intensify efforts in carrying out management practices as it improves performance of businesses and firm performance in Uganda in terms of proper planning, effective controlling and well organizing practices. It is also recommended that the longitudinal study should be carried out in order to bring out the true nature of the study as well as in other sectors.

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