The Effect of Financial Management on the Growth and Development of Small Scale Businesses in Seeta, Goma Division, Mukono Municipality

Abstract

The study sought to examine the effect of financial management on the growth and development of SSBs in Seeta, Goma, division, Mukono Municipality. The study was guided by three objectives: finding out the effect of financing decision on the growth and development of small scale businesses, finding out the effect of working capital on the growth and development of small scale businesses and finding out the effect of investment decisions on the growth and development of small scale businesses. The study was carried out using cross-sectional research design where quantitative research approach was utilized. Stratified sampling method was used to get a sample of 50 respondents who were SSB owners or managers of the selected SSBs in Seeta, Goma, division, Mukono Municipality and these responded to the questionnaires that were used to collect data. The study findings highlighted the pivotal role of strategic financing decision-making, effective working capital management, and prudent investment choices in driving the growth and development of small-scale businesses (SSBs). The findings underscore the importance of aligning financial decisions with long-term growth objectives, maintaining optimal working capital levels, and leveraging technology for efficiency. Additionally, proactive measures such as thorough risk assessment and market research, alongside balanced investment portfolios, are crucial for SSBs to thrive. Together, these insights emphasize the critical need for informed and well-executed financial practices as the cornerstone for SSBs' sustained growth and development in a dynamic business landscape. Finally, the study recommended that small-scale business owners in Seeta, Goma division, Mukono Municipality align their financing decisions with long-term goals, strengthen working capital management, invest in professional financial advisory services, adapt to changing market conditions, leverage technology, analyze past financing decisions, diversify investments prudently, and enhance communication and transparency within their organizations to ensure sustainable growth and profitability