Assessment of Financial Management Practices on Performance of Manufacturing Small to Medium Enterprises (SMEs) in Harare Metropolitan Province, Zimbabwe
The study evaluated the effect of financial management practices on performance of selected manufacturing Small to Medium Enterprises in Zimbabwe. SMEs are the fulcrum of economic growth globally contributing greatly to economic development. However the growth of SMEs financially is retarded measured on Return On Investment (ROI), Return On Equity and poor service delivery. The study adopted quantitative research approach rooted in Positivism research Philosophy. Correlational and survey research design were adopted in this study. The Population of the study comprised of 300 registered manufacturing SMEs in Harare Metropolitan Province, Zimbabwe. Using the 10% Basic rule Thumb, the sample size taken was 30 comprising of SMEs owner mangers and senior employees. Probability sampling method was used to ensure that the sample being studied was representative of the population of interest. Questionnaires were data collection instruments used in this study. Data collected was presented using Tables, Numbers, Percentages, Graphs and Figures. The data attained were analysed using descriptive statistics. Quantitative datas was uploaded on Statistical Package for Social Sciences (SPSS) version 21 for analysis. Analysis was done using non parametric Test and cross tabulation. Study results indicated that financial planning improves the Return On Investment (ROI) of manufacturing SMEs, accounting information systems in Zimbabwe help manufacturing SMEs increase productivity and that financial analysis helps manufacturing SMEs in Zimbabwe improve their Return On Asset (ROA). The study further recommended financial management courses to be done by SMEs entrepreneurs so as to enhance financial management skills to keep the organisations going. Longitudinal research on accounting practices and its impact SMEs performance need to be done so much that skills horned in such practices could be used to enhance performance.
Key Words: Financial practices, manufacturing, Performance, SMEs, Zimbabwe.