Abstract
The purpose of this study was to assess the influence of the budgeting process on the financial performance of SMEs. The study employed a qualitative research approach and a Case study design. Guided by Morse (1995) and Creswell (2007), the sample size of this study comprised twenty-one (21) participants from seven (7) SMEs. This sample included Owners, Managers, and Accountants of the sampled SMEs. The interview guide was used as the main research instrument. Data were analyzed thematically; it involved organizing, accounting for, and explaining the data, making sense of data in terms of the participant's definition of the situation, and noting patterns, themes, and categories regularities. Narrative form and direct quotations were used to present the Data. A synthesis of the findings indicated that the seven SMEs conducted budget reviews to evaluate how well their budgets are being implemented. The findings demonstrated that budget processes are most typically utilized for company oversight, performance evaluation, long-term planning, and enhanced decision-making. It is recommended that the budgeting process by SMEs should cultivate a culture of positive game spirit in every aspect namely target setting, system design, variance analysis, and corrective action. This would lead to improved performance of SMEs in their business undertakings.
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