Business ethics in Ugandan small and medium-sized enterprises
- Authors: Mayanja, Jamiah
- Date: 2016
- Subjects: Business ethics -- Uganda , Small business -- Uganda
- Language: English
- Type: Thesis , Doctoral , DPhil
- Identifier: http://hdl.handle.net/10948/8521 , vital:26400
- Description: SMEs have been acknowledged by governments globally as a prime source of economic growth and development. In Africa there has been a noticeable increase in the number of SME establishments. In Uganda, SMEs are the most popular business choice and play a major role in the national economy. Although SMEs significant economic contributions are generally acknowledged, being ethical and successful has become a challenge, as many SMEs in Uganda have not fully adopted and integrated ethics into their business strategies. Understanding the reasons for the increased unethical behaviour in SMEs is central to their continued business success. The primary objective of the study was to investigate the factors that influence ethical business conduct in Ugandan SMEs. From a comprehensive literature review, three main independent variables (staff-, business- and external environment factors) were identified as variables influencing ethical business conduct (dependent variable) of SMEs. A hypothetical model was developed to determine whether the independent variables have an influence on the dependent variable. Twelve hypotheses were formulated to test the relationships between three staff factors, five business factors, four external environment factors and ethical business conduct. The study sought the perceptions of SME owners or managers in the Kampala District and utilised the quantitative research paradigm. A survey was conducted with the aid of a structured self-administered questionnaire distributed by three fieldworkers. A combination of convenience and snowball sampling was utilised. The final sample comprised 384 respondents. The validity of the measuring instrument was ascertained by using exploratory factor analysis. The Cronbach‟s alpha values for reliability were calculated for each of the factors identified during the exploratory factor analysis. A total of ten valid and reliable factors were retained. Pearson product-moment correlation and multiple regression analysis were used to test the correlation and statistical significance of the relationships hypothesised between the various independent and dependent variables. One statistically significant relationship was found between the staff factors (employee attitude) and ethical business conduct. Two statistically significant relationships were found between the business factors (knowledge acquisition and management practices) and ethical business conduct. Three statistically significant relationships were found between the external environment factors (legal requirements, industry norm and media power) and ethical business conduct. External environmental factors seem to have a greater influence on SME ethical business conduct in Uganda. Multivariate Analysis of Variance (MANOVA) was used to identify if significant relationships exist between the eight demographic variables and seven reliable and valid independent variables. Furthermore, post-hoc Scheffé tests identified where the significant differences occurred between the different categories. Cohen‟s d-values were calculated in order to assess the practical significance of the mean scores. A total of twelve practical significant relationships were identified. SME owners or managers should consider employing staff with the right attitude to uphold sound ethical business values. They should implement ethical management practices to promote ethical business conduct amongst employees and ensure that employees are made aware of what is regarded as acceptable ethical business behaviour. SME owners or managers should adhere to legal requirements and industry norms to be known as businesses exhibiting ethical behaviour and utilise media to instil and guide ethical values in employees. Lastly, they must pay attention to the role that demographical variables such as: gender, level of education, current employment status, number of years in business and number of employees, play in behaving ethically in business.
- Full Text:
- Date Issued: 2016
- Authors: Mayanja, Jamiah
- Date: 2016
- Subjects: Business ethics -- Uganda , Small business -- Uganda
- Language: English
- Type: Thesis , Doctoral , DPhil
- Identifier: http://hdl.handle.net/10948/8521 , vital:26400
- Description: SMEs have been acknowledged by governments globally as a prime source of economic growth and development. In Africa there has been a noticeable increase in the number of SME establishments. In Uganda, SMEs are the most popular business choice and play a major role in the national economy. Although SMEs significant economic contributions are generally acknowledged, being ethical and successful has become a challenge, as many SMEs in Uganda have not fully adopted and integrated ethics into their business strategies. Understanding the reasons for the increased unethical behaviour in SMEs is central to their continued business success. The primary objective of the study was to investigate the factors that influence ethical business conduct in Ugandan SMEs. From a comprehensive literature review, three main independent variables (staff-, business- and external environment factors) were identified as variables influencing ethical business conduct (dependent variable) of SMEs. A hypothetical model was developed to determine whether the independent variables have an influence on the dependent variable. Twelve hypotheses were formulated to test the relationships between three staff factors, five business factors, four external environment factors and ethical business conduct. The study sought the perceptions of SME owners or managers in the Kampala District and utilised the quantitative research paradigm. A survey was conducted with the aid of a structured self-administered questionnaire distributed by three fieldworkers. A combination of convenience and snowball sampling was utilised. The final sample comprised 384 respondents. The validity of the measuring instrument was ascertained by using exploratory factor analysis. The Cronbach‟s alpha values for reliability were calculated for each of the factors identified during the exploratory factor analysis. A total of ten valid and reliable factors were retained. Pearson product-moment correlation and multiple regression analysis were used to test the correlation and statistical significance of the relationships hypothesised between the various independent and dependent variables. One statistically significant relationship was found between the staff factors (employee attitude) and ethical business conduct. Two statistically significant relationships were found between the business factors (knowledge acquisition and management practices) and ethical business conduct. Three statistically significant relationships were found between the external environment factors (legal requirements, industry norm and media power) and ethical business conduct. External environmental factors seem to have a greater influence on SME ethical business conduct in Uganda. Multivariate Analysis of Variance (MANOVA) was used to identify if significant relationships exist between the eight demographic variables and seven reliable and valid independent variables. Furthermore, post-hoc Scheffé tests identified where the significant differences occurred between the different categories. Cohen‟s d-values were calculated in order to assess the practical significance of the mean scores. A total of twelve practical significant relationships were identified. SME owners or managers should consider employing staff with the right attitude to uphold sound ethical business values. They should implement ethical management practices to promote ethical business conduct amongst employees and ensure that employees are made aware of what is regarded as acceptable ethical business behaviour. SME owners or managers should adhere to legal requirements and industry norms to be known as businesses exhibiting ethical behaviour and utilise media to instil and guide ethical values in employees. Lastly, they must pay attention to the role that demographical variables such as: gender, level of education, current employment status, number of years in business and number of employees, play in behaving ethically in business.
- Full Text:
- Date Issued: 2016
Relationships between cash management and growth of informal businesses in Uganda
- Nuwagaba, Geoffrey, Struwig, Miemie
- Authors: Nuwagaba, Geoffrey , Struwig, Miemie
- Date: 2016
- Subjects: Cash management -- Uganda , Informal sector (Economics) -- Uganda , Small business -- Uganda
- Language: English
- Type: Thesis , Doctoral , PhD
- Identifier: http://hdl.handle.net/10948/12319 , vital:27054
- Description: This study investigates the relationships between cash management and growth of informal businesses in Uganda. Whereas anecdotal evidence has for some time revealed that informal businesses in Uganda are faced with the challenge of cash management, no specific studies have been conducted to investigate how this relates to the growth of businesses where evidence has also indicated that most of these businesses do not exist for very long. In particular, the study assesses and explores the growth levels of informal businesses in terms of sales volume, growth in employment and length of existence. The study investigates the various ways in which informal businesses manage their cash and investigates the various internal and external factors that moderate cash management and the growth of the informal businesses. Furthermore, the study proposes a possible framework to manage cash in informal businesses and makes recommendations to informal business owners and managers on how to effectively manage cash in order to stimulate business growth. In order to investigate the relationships between the variables, an empirical investigation was undertaken. Based on the literature review, the primary objective of the study was formulated to investigate the relationships between cash management and growth of informal businesses amidst the external and internal environment in Uganda in order to suggest a framework for effective management of cash by informal businesses that would enhance their growth. A positivistic research paradigm was adopted in this study. A sample of 383 informal businesses was drawn from the five divisions of Kampala district namely; Central, Kawempe, Makindye, Nakawa and Rubaga. To ensure validity and reliability, EFA and Cronbach’s alpha coefficient were computed. Six hypotheses were developed to test the relationships between cash management and growth of informal businesses. The empirical results revealed that there is a significant relationship between cash management and the external environment in which informal businesses operate, a significant relationship between the external environment and the growth of informal businesses and a significant relationship between cash management and growth of informal businesses where the external environment will have a moderating influence on the relationship. The empirical results did not establish a significant relationship between cash management and the internal environment in which informal businesses operate, the internal environment and growth of informal businesses and cash management and growth of informal businesses where internal environment will have a moderating influence on the relationship. The results of this study show that the growth of informal businesses is largely hampered by poor cash management practices and challenges such as the lack of cash planning, lack of cash forecasting and budgeting, lack of financial controls and reporting, the tendency to invest largely in short-term assets which limits their profitability, the employment of less competent and skilled staff and lack of formal accounting information systems. The magnitude of the impact of these is accelerated by the external environment such as competition and the legal and regulatory environment which put pressure on the little cash resources owned by these businesses. Based on the study results, several strategies based on individual cash components of cash planning, cash forecasting and budgeting, financial controls and reporting, short-term investment of cash surplus, competence and skills of staff and accounting information systems were recommended for implementation. It was further recommended that these strategies should be implemented while giving due attention to the external environment if informal businesses are to effectively manage cash and enhance their growth.
- Full Text:
- Date Issued: 2016
- Authors: Nuwagaba, Geoffrey , Struwig, Miemie
- Date: 2016
- Subjects: Cash management -- Uganda , Informal sector (Economics) -- Uganda , Small business -- Uganda
- Language: English
- Type: Thesis , Doctoral , PhD
- Identifier: http://hdl.handle.net/10948/12319 , vital:27054
- Description: This study investigates the relationships between cash management and growth of informal businesses in Uganda. Whereas anecdotal evidence has for some time revealed that informal businesses in Uganda are faced with the challenge of cash management, no specific studies have been conducted to investigate how this relates to the growth of businesses where evidence has also indicated that most of these businesses do not exist for very long. In particular, the study assesses and explores the growth levels of informal businesses in terms of sales volume, growth in employment and length of existence. The study investigates the various ways in which informal businesses manage their cash and investigates the various internal and external factors that moderate cash management and the growth of the informal businesses. Furthermore, the study proposes a possible framework to manage cash in informal businesses and makes recommendations to informal business owners and managers on how to effectively manage cash in order to stimulate business growth. In order to investigate the relationships between the variables, an empirical investigation was undertaken. Based on the literature review, the primary objective of the study was formulated to investigate the relationships between cash management and growth of informal businesses amidst the external and internal environment in Uganda in order to suggest a framework for effective management of cash by informal businesses that would enhance their growth. A positivistic research paradigm was adopted in this study. A sample of 383 informal businesses was drawn from the five divisions of Kampala district namely; Central, Kawempe, Makindye, Nakawa and Rubaga. To ensure validity and reliability, EFA and Cronbach’s alpha coefficient were computed. Six hypotheses were developed to test the relationships between cash management and growth of informal businesses. The empirical results revealed that there is a significant relationship between cash management and the external environment in which informal businesses operate, a significant relationship between the external environment and the growth of informal businesses and a significant relationship between cash management and growth of informal businesses where the external environment will have a moderating influence on the relationship. The empirical results did not establish a significant relationship between cash management and the internal environment in which informal businesses operate, the internal environment and growth of informal businesses and cash management and growth of informal businesses where internal environment will have a moderating influence on the relationship. The results of this study show that the growth of informal businesses is largely hampered by poor cash management practices and challenges such as the lack of cash planning, lack of cash forecasting and budgeting, lack of financial controls and reporting, the tendency to invest largely in short-term assets which limits their profitability, the employment of less competent and skilled staff and lack of formal accounting information systems. The magnitude of the impact of these is accelerated by the external environment such as competition and the legal and regulatory environment which put pressure on the little cash resources owned by these businesses. Based on the study results, several strategies based on individual cash components of cash planning, cash forecasting and budgeting, financial controls and reporting, short-term investment of cash surplus, competence and skills of staff and accounting information systems were recommended for implementation. It was further recommended that these strategies should be implemented while giving due attention to the external environment if informal businesses are to effectively manage cash and enhance their growth.
- Full Text:
- Date Issued: 2016
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