The impact of financial planning on the financial performance of small scale business firms in ekiti state

This study examined the impact of financial planning on the financial performance of small scale business firms in Ekiti State. The study particularly determined the relationship between risk management on the financial performance of small scale business firms in Ekiti state; assessed the effect of cash budgeting on the financial performance of small scale business firms in Ekiti state and evaluated the impact of cash control on the financial performance of small scale business firms in Ekiti State. The cross-sectional research approach was employed as fifteen (15) SMEs were purposively selected from Ado-Ekiti Metropolis, one hundred and fifty respondents were further selected randomly and primary data was amassed using a well-designed questionnaire. Data gathered in the study was estimated using descriptive analysis - frequencies, inferential estimations - correlation, regression and other post estimation tests (Linearity, Normality, Serial Correlation and Heteroskedasticity Tests). Discoveries ascertained in the study demonstrated that a positive insignificant relationship exists between risk management and the financial performance of SMEs in Ekiti State; also, the study revealed that cash budgeting exerts a significant effect on the financial performance of SMEs in Ekiti State and cash control impacts positively on the financial performance of SMEs in Ekiti State. Following these discoveries, the study suggested that management firms of business firms should develop a risk policy; management of business firms in Ekiti State should prepare a financial plan and cash allocation, disbursement and cash management generally should be accorded an increased focus.