Effect of Financial Management Practices on Financial Performance of Small and Medium Enterprises In Rwanda: A Case of six Selected SACCOs in Musanze District (2018-2020)

  • Umutoni Clementine
  • Elijah Kihooto
  • Mutabazi Placide
Keywords: Financing decision, Investment decision, SACCO, Risk management and Working capital management


Worldwide, the management practices have been marked as having a critical significant contribution to the financial performance of institutions including Small and Medium Enterprises.  This study intends to focus on the evaluation on Financial Management Practices and Financial performance of SMEs in Rwanda.   This study aimed to Analyze whether Financial Management Practices have effects on the Small and Medium Enterprises especially on the six selected SACCOs in Musanze District.  The design of this study was a quantitative descriptive in nature. The target population of the study was 30% of all staff and employees from all Musanze districts SACCOs and a sample size of 60 respondents were selected using universal census approach and data were analyzed using statistical package for social sciences (SPSS) version 20. Findings study therefore confirms that there is strong positive effect of working capital management on performance and that that there is a significant positive effect of investment decision on SACCOs performance. The findings concluded that there is a significant effect from financial management practices to the financial performance.


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How to Cite
Clementine, U., Kihooto, E., & Placide, M. (2021). Effect of Financial Management Practices on Financial Performance of Small and Medium Enterprises In Rwanda: A Case of six Selected SACCOs in Musanze District (2018-2020). International Journal of Applied Sciences: Current and Future Research Trends , 10(01), 44-51. Retrieved from https://ijascfrtjournal.isrra.org/index.php/Applied_Sciences_Journal/article/view/1171