Title: The Effect Of Inventory Management Practices On Financial Performance Of Small Enterprises In Gayaza Trading Centre, Wakiso District
Authors: Kiizah Pastor
Micheal Timbirimu
Quilino Muzinya
Magara Mugaga Rubanju
Volume: 10
Issue: 5
Pages: 440-444
Publication Date: 2026/05/28
Abstract:
The study examined the effect of inventory management practices on the financial performance of small enterprises in Gayaza Trading Centre, Wakiso District, Uganda. Specifically, the study focused on maintaining accurate inventory records, using appropriate inventory control techniques, predicting customer demand, and addressing operational challenges such as technological limitations and lack of skilled personnel. A quantitative research approach was employed, and data were collected using structured questionnaires from 109 small enterprise owners and managers. Descriptive and inferential statistics were used to analyze the data. Findings revealed that maintaining accurate inventory records and effective demand forecasting positively influence financial performance, while technological limitations and lack of skilled personnel hinder inventory management effectiveness. The study concludes that small enterprises can enhance profitability by adopting systematic inventory management practices and leveraging technology to improve efficiency.