Budget management key to success in smes

Abstract

Budgets are a compass and guiding light for businesses. Therefore, management and owners of small and mediumsized enterprises (SMEs) must carry out appropriate and accurate capital budgeting activities and methods to ensure the longevity and progress of the business. There is a high risk that SMEs will go bankrupt soon after their creation,
and one of the likely causes is a lack of management capacity. Thus, the study aims to evaluate the planning management skills and budget practices of SMEs, Methodology. A quantitative analysis was used as a research method, a descriptive design and an instrument were adopted using the questionnaire with a Likert scale, the data, which were converted into numerical values, were analyzed using a scientific statistical analysis program; with the help
of a SPSS software setup. Result. The importance of using budget control techniques due to their impact on raising the financial performance of the organization by controlling the organization's costs, is to review the differences in the budget, allocate its resources and choose the best investments for the return on capital. Conclusions. The study showed
that the highest percentage of ownership of SMEs are sole proprietorships and closely held corporations. Executives are largely unaware of their creditworthiness, the various policies, regulations and programs offered by government entities.