IMPACT OF BUDGETARY CONTROL ON BUSINESS ENTERPRISE PERFORMANCE OF HOTELS/GUEST HOUSES IN BIDA METROPOLIS

Ibrahim Abubakar Mikugi

Department of Business Administration and Management

The Federal Polytechnic, P.M.B 55, Bida, Niger State

Email: tatafoundation@hotmail.com

ABSTRACT

Most business organizations have fold-up due to lack of liquidity. One of the major means of ensuring liquidity in an organization is to ensure that organizations carry out its activity to ensure that it achieve a level of profitability that will guarantee the continuity of the organization. Hence, the topic: Impact of budgetary control on business enterprises performance of Hotels/Guest Houses in Bida Metropolis. The focus of the investigation is to show why some business organizations fail in their profit objectives and to explain how effective budgetary control has is used to enhance the performance of business organizations. The objective of the research is to examine the impact of budgetary control as instrument for accountability on enterprises net profit margin of business performance, to examine the impact of human factor as managerial commitment and employee’s attitude towards budgetary control enterprises return on investment. The methodology employed by this study include structured questionnaire, primary and secondary data, extensive literature review, stratified sampling method, chi-square and SPSS analytical method. A structured question method was used to elicit information from 140 respondents who were selected from different hotels and guest houses in Bida Metropolis using stratified sampling method. The study revealed that effective budgetary control has a strong and positive impact on the performance of every business organization. Recommendations were made on how budgetary controls as a tool could be used to ensure that performance of business organizations are achieved. One of the major recommendations is that the managers of businesses should put in place instrument that will help to improve the accountability of the employee in the organization such as better understanding of budgetary system and cordial relationship between the employee and the management.

Key Words: budget, budgetary control, business enterprise, profit planning, performance