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SMES CHARACTERISTICS AND WORKING CAPITAL MANAGEMENT AMONG SELECTED SMES IN MBALE AND TORORO DISTRICTS IN EASTERN UGANDA


Dr. Eric Mabonga

Kampala International University, Uganda


ABSTRACT

This paper is an attempt to investigate how the characteristics of SMEs affect working capital management in selected SMEs. The purpose of this paper is to establish the difference in working capital which is statistically significant. The other purpose is to help explain the necessity of firms optimizing their level of working capital management. The result of this study clearly shows significant difference in the extent of working capital management in selected SMEs in Mbale and Tororo districts in eastern Uganda. Difference in the extent of working capital exists according to: Age, status in business is significant, origin of the business, form of ownership, and business sector: Non service was significant while service is not significant and years spent in business show a significant difference.


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