MANAGEMENT SKILLS AND FINANCIAL SUSTAINABILITY OF SMALL AND MEDIUM ENTERPRISES IN UGANDA: A CASE OF SELECTED SMALL AND MEDIUM ENTERPRISES (SMES) IN KAWEMPE DIVISION. A CROSS-SECTIONAL STUDY.

Abstract

Background: 

The study examined the effects of management skills on the financial sustainability of SMEs. The study evaluated different variables such as; technical skills, communication skills, and human relations skills, but this particular study focuses on the effect of technical skills on the financial sustainability of SMEs. 

Methodology: 

The study used a descriptive research design. The sample size for the study of 149 was drawn from a study population of 185. 

Results:

Findings identified technical skills as the highest contributing factor of management skills to financial sustainability with (βeta value of .426, Sig. at 0.000 t-value=4.836>1.96.

Conclusion: 

In conclusion, employees want managers to cooperate with them more, appreciate them more, and understand them more. These two parts of the questionnaire clearly state the opinion of employees and that is why managers need to take this issue seriously and communicate with their subordinates more. 

Recommendation.

The study recommended that employees and managers of SMEs should invest much and adopt the best practical skills to run businesses such as; bookkeeping and records management skills, and computer skills for them to reach greater heights.