Examining the Effect of Entrepreneurial Financial Knowledge on Performance of Micro and Small Enterprises of Muslim Women in Mbarara District, Uganda

Andrew O. Nyakundi¹ and Baina Nakanwagi²

¹Department of Business Administration, Kampala International University, Uganda

²PhD Student, Kampala International University, Uganda

ABSTRACT

Micro and Small Enterprises (MSEs) immensely contribute to economic development and offers job opportunities in a country. Uganda Government has introduced innovations aimed at facilitating growth and ensure sustainability of Mses. Despite these efforts,70% of SMEs inclusive of those owned by Muslim Women entrepreneurs, fail to transition beyond survival stage. Objectives were to: evaluate effect of debt management skills, financial planning and Islamic financial principles on performance of MSEs of Muslim Women in Mbarara City, Uganda. The study was anchored on Resource-Based Theory and Theory of Islamic Economics and guided by conceptual framework. Positivism philosophy was adopted, both descriptive research design and quantitative research approach were adopted. Target population was 298 with a sample of 171.Simple random sampling and purposive sampling were used to select respondents. Data was collected using questionnaire and analysed using multiple regression technique with the help of SPSS tool. The regression model explained 98.7% of variation in performance of SMEs.The results of hypothesis showed statistically significant effects of debt management skills(t=.399,P=’000.P<.05),financial planning(t=.067,P=.000.P<.05) and Islamic financial principles(t=.000,P<.05) on performance of MSEs .The study concluded that all the three constructs affected performance of MSEs. Recommendations include entrepreneurial trainings, development of favourable policy framework and expansion of Islamic banks. The findings could be useful to researchers, academicians, policy makers and Muslim Women entrepreneurs.

Keywords: Micro and Small Enterprise, Debt management Skills, Financial Planning, Islamic Financial Principles, Performance, Muslim Women Entrepreneurs

CITE AS: Andrew O. Nyakundi and Baina Nakanwagi (2026). Examining the Effect of Entrepreneurial Financial Knowledge on Performance of Micro and Small Enterprises of Muslim Women in Mbarara District, Uganda. INOSR ARTS AND HUMANITIES 12(1):55-62. https://doi.org/10.59298/INOSRAH/2026/1215562