The Impact of Record Keeping on the Operational Performance of Small-Scale Businesses in Kauga, Mukono District

Abstract

The study sought to investigate the impact of record keeping on the operational performance of small-scale businesses in Kauga, Mukono Municipality. The study was guided by three objectives: examining the relationship between record keeping and the operational performance of small-scale businesses in Kauga, establishing the different types of record keeping used by small scale businesses in Kauga and finding out the challenges hindering proper record keeping among small scale businesses in Kauga and suggesting possible solutions to the problems. The study was carried out using cross sectional survey research design where quantitative research approach was utilized. Stratified sampling method was used to get a sample of 80 respondents who were SME owners and managers of registered SSBs in Kauga village, Mukono Municipality. Data was collected using questionnaires and analyzed using SPSS version 20. From the study findings, it was revealed that there is a strong positive relationship between effective record-keeping practices and the operational performance of small-scale businesses in Kauga, evidenced by regular updates to financial, inventory, and employee records, and the adoption of both traditional and digital methods. Numerous impediments still remain, such as insufficient training, the expensive cost of record-keeping equipment, time limits, and insufficient assistance, even in spite of the seeming dedication to precise record preservation and the use of digital technologies. To optimize record-keeping procedures and, by extension, improve small business performance and management, it is imperative to address these difficulties with better training, more reasonably priced equipment, better time management, and better support systems. Ultimately, in order to improve the operational performance of small businesses in Kauga, the study suggested that more support systems and resources be made available, more affordable tools should be made available, better time management techniques should be improved, and more adoption of digital tools should be encouraged. Using technology to improve corporate outcomes, these steps will close knowledge gaps, cut expenses, guarantee effective record keeping, and ensure cost effectiveness.