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Effects of Budget Planning on Financial Performance of Selected SMEs in Eldoret Town, Kenya Moderated by Digital Finance Services

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  • Jepleting Gladys

    (Department of Business Management, School of Business, Economics and Management Sciences, University of Eldoret, Kenya)

  • Dr. John Tarus

    (Lecturer, Department of Accounting and Finance, School of Business and Economics, Moi University, Kenya)

  • Dr. Zachariah Shitote

    (Lecturer, Department of Business Management, School of Business, Economics and Management Sciences, University of Eldoret, Kenya)

Abstract

The study intention was to investigate effects of budget planning on financial performance of selected SMEs in Eldoret town, Kenya, moderated by digital financial services. Specific objectives of the study were to examine the influence of budget planning on financial performance and effect of digital financial services on financial performance. The study was designed to assess the moderating role of digital financial services on the relationship between budget planning and financial performance of selected SMEs. The research was guided by the Priority-Based Budgeting Theory and Resource Based Theory. The study utilized explanatory research design and descriptive research design. Simple random sampling techniques in collecting data from 302 selected SMEs using structured questionnaires. Cronbach alpha was applied to test reliability while Factor analysis was applied to test validity. Using SPSS version 23 hierarchical regression model was employed in data analysis and testing of the hypotheses. The results reveal that digital finance services had significantly positive relationship between budget planning and financial performance.

Suggested Citation

  • Jepleting Gladys & Dr. John Tarus & Dr. Zachariah Shitote, 2024. "Effects of Budget Planning on Financial Performance of Selected SMEs in Eldoret Town, Kenya Moderated by Digital Finance Services," International Journal of Research and Innovation in Social Science, International Journal of Research and Innovation in Social Science (IJRISS), vol. 8(11), pages 716-729, November.
    • Handle: RePEc:bcp:journl:v:8:y:2024:i:11:p:716-729
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    References listed on IDEAS

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    1. Rennie Bakashaba & Benjamin Musiita & Sarah Nabachwa, 2024. "The Mediating Role of Access to Digital Finance on the Relationship between Financial Literacy and Performance of Uganda SMEs in Mbarara City," Journal of Economics and Behavioral Studies, AMH International, vol. 16(1), pages 140-151.
    2. T. Ravikumar, 2020. "Financial access indicators of financial inclusion: a comparative analysis of SAARC countries," International Journal of Intelligent Enterprise, Inderscience Enterprises Ltd, vol. 7(1/2/3), pages 28-36.
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