Management attitude, financing decision and the financial performance of small and medium enterprises (smes) in mbale district

Abstract

The purpose of the study was to establish the relationship between management Attitude,on and t Financing Decisihe Financial Performance of Small and Medium Enterprises in Mbale District. They study adopted a cross sectional survey involving a sample size of 341 SMEs in the district in the categories of General merchandise, super markets, manufacturing hotels and restaurants, respondents were made to specify any other category they fall under. Primary data was collected using self administered questionnaires data was tested for reliability and later analyzed using SPSS. Results from Pearson coefficient showed a significant positive relationship between management attitude and financial performance, financing decision and financial performance, management attitude and financing decision. Results from the multiple regression revealed that both management attitude and financing decision a better predictors of financial performance but it particular revealed that financing decision was a better predictor of financial performance compared to management attitude The study recommended that as small and medium enterprises continuously search for ways of improving their financial performance they should also consider their attitudes and the decisions they take while financing these businesses among the many factors that may explain good financial performance.