"The Role of Financial Reporting and Analysis in Enhancing Business Performance" : Evidence from Agro-Processing Firms in Emerging Markets

Abstract

This study investigates the role of financial transparency, collaborative governance, financial analysis, and reporting practices in shaping the financial performance and resilience of small and medium enterprises (SMEs) in the Ankole region of Uganda. Using qualitative interviews with SME owners, managers, and finance officers, the research explores how financial management tools—ranging from basic budgeting apps to sales forecasting—enable strategic planning and risk management. Findings reveal that enhanced financial analysis supports proactive decision-making, operational discipline, and growth readiness, while persistent challenges in financial reporting hinder access to credit and sustainable expansion. The study underscores the importance of context-appropriate financial technologies and capacity-building initiatives to bridge financial management gaps. Implications for policy and practice include fostering inclusive financial governance and targeted digital solutions tailored for resource-constrained SMEs. This research contributes to understanding SME resilience in volatile economic environments and offers pathways for improving financial management in similar developing contexts.