Financial Planning and Performance of Small and Medium Enterprises

Abstract

The study was about financial planning and performance of small and medium enterprise a case study of Olives Capital Limited. The study was guided by three objectives that are: To establish financial planning has helped Olives Capital Ltd to increase the quality of its services. to establish how financial planning has enabled Olives Capital Limited to improve the level of customer satisfaction to identify the challenges faced by the management of Olives Capital Ltd. when conducting financial planning. A case study research design was used where both quantitative and qualitative methods of data collection and analysis was also used. Purposive and simple random sampling was used to get a representative sample. The study found out that financial planning increases the quality of its services in Olives Capital ltd: planning, evaluation of performance, for control purpose, continuous comparison of actual results against budgets to form a basis of standards and creation of responsibility centers in organizations. The researcher concluded that financial planning has helped Olives Capital Ltd to increase its profitability this was evidenced from the data collected. Findings shove that management Olives Capital Ltd always carries out financial planning (by 80%), plans are drawn after consulting members (by 73.5%), The Company prepares budgets every year (by 70.6%), companies with well-structured financial plans products tend to produce high quality services (by 79.4%). financial planning alone cannot guarantee an improvement in quality of goods and services (by 83.4%). financial planning has a direct on the quality of goods (by 73.5%). Adequate financial resources enable the company to conduct rigorous quality control measures (by 76.5%), Financial planning alone cannot guarantee an improvement in the quality of goods (by 73.5%), and the Companies that prioritize quality in financial plans tend to see quality improvement. (By 58.8%). Effective financial planning provides reasonable assurance regarding the financial resources of Olives Capital Ltd.

The researcher recommended that to increase the quality of services and goods through financial planning. the owners of the union should undertake courses or training about financial planning and quality control or hiring workers with knowledge and skills in quality control and financial planning. The government of Uganda or the local government or UNBS or any other support agent or academic institution can organize such training and charge some fees to the participants.