RELATIONSHIP BETWEEN BUDGETING AND PERFORMANCE OF REMITTANCE COMPANIES IN MOGADISHU-SOMALIA

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.