A Hypothetical Analysis of Budgeting and Profitability of Micro Projects in Uganda

Abstract

The study set out to assess the contribution of budgeting to profitability of micro projects. This study was premised on the fact that many people obtained seed money to establish micro projects. This strategy was to assist citizens by the civil war of 1980s. Those who received the seed money were to invest the money in micro projects and later payback the loans with some interest. Loan repayment was so poor that even some micro finance institutions had to close. A hypothesized model revealed that budgeting contributed 36% to profitability. Financial education was recommended and would increase profitability to 47%.

Keywords: budgeting, profitability, microprojects, hypothetical model