The Contribution of Purchasing Management Practices to Enterprise Growth of Micro Restaurant in Uganda

Purpose – The purpose of this paper was to examine the contribution of purchasing management practices to enterprise growth. Micro restaurants always start with little capital, they earn little profits, and for that matter do not show substantive economic worth to the owners. The only viable option is to grow to small, medium and later to large scale restaurants. So, it was important to investigate on how much purchasing practices contributed to the growth of the micro restaurants. Design/methodology– In this study, a cross-sectional design was used. Data was gathered from a sample of 300 participants who were mainly restaurateurs. A questionnaire was the main tool used to collection the perceptions of respondents. Results – Results showed that purchasing management and micro restaurant growth had a clear relationship. The better the purchasing, the more it contributed to micro restaurant growth. Through a simple linear regression, it was found out that purchasing management practices contributed 26% of micro restaurant growth in KCCA markets. Recommendation: Since 26% was rather low, it was recommended that micro restaurant growth being a function of purchasing management practices restaurateurs form a purchasing cooperative which would yield the benefits of cooperative game theory. Originality – The research on the micro restaurants in KCCA markets plus the proposal of managing restaurateurs purchasing practices illustrate the fact that this work was original.