RELATIONSHIP BETWEEN BUD GETING AND PERFORMANCE OF REMITTANCE COMPANIES IN SOMALIA

ABSTRACT
The purpose of this study was to investigate the relationship between budgeting and
performance in remittance companies in Mogadishu, Somalia. The study collected
data from seven remittance companies using questionnaires. The researchers used
judgmental sampling technique of non-probability sampling to select 103 respondents
from those companies. Data were analyzed using descriptive statistics of frequency,
mean and standard deviation and correlation analysis methods. The study revealed a
moderate positive relationship between budgeting and remittance companies'
performance (r = .514, p < .01). The study suggests that remittance companies
should adopt participative budgeting and give rewards to talented employees if they
meet budget goals.