The Role of Financial Management in Supporting Firm Growth in Uganda, the Case of West Nile Region

International Journal of Economics and Management Studies

© 2018 by SSRG - IJEMS Journal

Volume 5 Issue 4

Year of Publication : 2018

Authors : Marus Eton1 Fabian Mwosi, Deus Mutesigensi, Charles David Ebong

10.14445/23939125/IJEMS-V5I4P101

How to Cite?

Marus Eton1 Fabian Mwosi, Deus Mutesigensi, Charles David Ebong, "The Role of Financial Management in Supporting Firm Growth in Uganda, the Case of West Nile Region," SSRG International Journal of Economics and Management Studies, vol. 5,  no. 4, pp. 1-8, 2018. Crossref, https://doi.org/10.14445/23939125/IJEMS-V5I4P101

Abstract:

Injecting colossal sums of money to beginning firms without training them on acceptable financial management practices is pitiable. Government, through Ministry of Finance, Planning and Economic Development injects colossal sums of money, annually, in enterprise growth and development. However, firms that access these funds often collapse due to unacceptable financial management practices. The study investigated the role of financial management on firm growth in West Nile region, Uganda. Simple random sampling procedure was used to select a sample of 111 participants for the study. Data were collected through questionnaires and analyzed using SPSS statistical package. The study discovered a negative correlation between financial management and firm growth (r = -.184), caused by high financial illiteracy, which is bedrock to ineffective utilization of financial resources, unsound financial decisions and improper financial projections. The study concluded that firms in West Nile breed and continue to exist amidst high financial illiteracy levels. It was therefore recommended that government and other development partners devote more resources in equipping enterprise developers with financial skills and knowledge before disbursing grants and loanable funds for sustainable business growth.

Keywords:

Financial management, financial literacy, firm growth, business environment

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