Browsing by Author "TUSASIRWE APOVIA"

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WORKING CAPITAL MANAGEMENT AND FINANCIAL PERFORMANCE OF HARDWARE BASED SMEs IN MUKONO MUNICIPALITY, UGANDA
(Uganda Christian University, 2025-09-22) TUSASIRWE APOVIA
This study investigates the critical relationship between working capital management (WCM) and the financial performance of Small and Medium-sized Enterprises (SMEs) in the hardware retail sector of Mukono Municipality, Uganda. SMEs are a vital component of the Ugandan economy, contributing significantly to employment and GDP. However, a high failure rate, particularly within the first five years of operation, is often attributed to poor financial management practices, with ineffective WCM being a primary contributor. The research focuses specifically on hardware stores, a sector characterized by unique financial imperatives such as high inventory carrying costs, reliance on vendor credit, and seasonal demand fluctuations. These factors make efficient management of cash, accounts receivable, and inventory absolutely essential for liquidity, profitability, and overall sustainability. Despite the acknowledged importance of WCM in corporate finance literature, a significant gap exists in understanding its specific impact on hardware SMEs in peri-urban Ugandan contexts. This study aims to fill this gap by analyzing how the various components of WCM—cash management, accounts receivable management, and inventory management—affect the financial performance, measured in terms of profitability, of these firms. The findings are expected to provide crucial evidence-based insights for hardware SME owners to improve their financial decision-making, for policymakers to design targeted support interventions, and for financial institutions to develop more tailored products. Ultimately, this research seeks to contribute to enhanced business practices, improved sustainability, and the continued growth of this critical sector within the Ugandan economy.