Abstract:
The study aimed at assessing the impact of financial management practices on the performance of Small and Medium Enterprises in Rwanda by taking a case study of Bakery and Supermarket of Gisenyi and specifically to determine financial management practices in Bakery and Supermarket of Gisenyim and to analyze the impact of financial management practices on the performance of Bakery and Supermarket of Gisenyi. The study used a descriptive research design and used also quantitative method in data collection and analysis through questionnaire. The population size for this study was composed of 23 employees of Bakery and Supermarket of Gisenyi. Universal sampling technique was used take a sample of all employees of Bakery and Supermarket of Gisenyi since they are few in number. Due to the fact that study population is small, the researcher used 23 respondents as sample size since they are few in number, therefore, the researcher can access to them easily. The study used primary data which were gathered using questionnaires. The data were analyzed using descriptive statistics and they were presented using frequency table and percentages. Analytical method; synthetic method and comparative method were used to analyze data. The study found out that financial management practices in Bakery and Supermarket of Gisenyi include financial budgeting; financial record keeping practice and receivables collection practice. In addition, the study found out that financial management practices have significant contribution to the performance of Bakery and Supermarket of Gisenyi as they help to have enough liquidity to meet short-term financial obligations as they fall due; facilitate to maintains stability in business operations; enable the business to survive in crisis periods; reduce losses occurrence in the business; enhance financial and operational efficiency within the business and help to manage income and expenses. The study concluded that financial management practices have positive significant impact on the performance of Small and Medium Enterprise particularly Bakery and Supermarket of Gisenyi. The study recommended that Bakery and Supermarket of Gisenyi should attend training and workshops so as to be equipped with record-keeping knowledge needed for efficient financial management.
