WRITING EFFECTIVE
INTRODUCTION
FOR RESEARCH
BY: DR. ARIEL E. TORIALES
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THE HOOK AND GENERAL CONTEXT
Start with a compelling statement, fact, or statistic to grab
attention.
Provide a broad overview of the research topic.
Explain why this topic is relevant in the real-world context.
THE IMPACT OF BUDGETING PRACTICES ON FINANCIAL PERFORMANCE OF
SMALL AND MEDIUM ENTERPRISES (SMES)
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THE HOOK AND GENERAL CONTEXT
Effective financial management is crucial for the sustainability and
growth of businesses, especially for Small and Medium Enterprises (SMEs)
(Atrill & McLaney, 2022). One of the most important financial management
tools is budgeting, which helps businesses plan, control, and allocate
resources efficiently (Horngren, Datar, & Rajan, 2021). Despite its importance,
many SMEs fail to implement proper budgeting practices, leading to
financial instability and even business failure (Lukka, 2019). This study
explores the impact of budgeting practices on the financial performance of
SMEs, emphasizing how effective budgeting can enhance business
profitability and sustainability.
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NARROWING DOWN TO THE RESEARCH GAP
Discuss previous studies or existing knowledge related to your
topic.
Identify gaps, inconsistencies, or unresolved issues in the current
literature.
Justify the need for your study.
THE IMPACT OF BUDGETING PRACTICES ON FINANCIAL PERFORMANCE OF
SMALL AND MEDIUM ENTERPRISES (SMES)
PARAGRAPH 3
NARROWING DOWN TO THE RESEARCH GAP
Prior research has extensively discussed the role of budgeting in large
corporations, where financial resources and accounting systems are well-
established (Drury, 2020). However, there is limited empirical evidence on
how SMEs utilize budgeting techniques and how these practices influence
their financial performance (Uyar & Güngörmüş, 2021). Given the unique
challenges faced by SMEs, including limited financial expertise and
resource constraints, it is essential to investigate whether proper budgeting
practices lead to improved financial outcomes (Collier, 2015).
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JUSTIFICATION OF THE STUDY
Explain why your study is important.
Discuss how your research will contribute to academic knowledge,
industry practice, or policy-making.
THE IMPACT OF BUDGETING PRACTICES ON FINANCIAL PERFORMANCE OF
SMALL AND MEDIUM ENTERPRISES (SMES)
PARAGRAPH 4
JUSTIFICATION OF THE STUDY
Effective budgeting practices play a crucial role in ensuring the financial sustainability
and growth of Small and Medium Enterprises (SMEs), yet many businesses fail to implement
structured financial planning, leading to poor financial performance (Atrill & McLaney, 2022).
This study is important because it addresses the gap in understanding how specific
budgeting techniques impact the financial health of SMEs, which often operate with limited
resources and financial expertise (Lukka, 2019). By examining the relationship between
budgeting practices and financial performance, this research contributes to the academic
literature on financial management and provides practical insights for SME owners and
financial managers in optimizing resource allocation and profitability (Horngren, Datar, &
Rajan, 2021). Furthermore, policymakers and financial institutions can use the findings to
develop targeted financial literacy programs and funding strategies that encourage SMEs to
adopt effective budgeting methods, ultimately fostering economic growth (OECD, 2020).
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SIGNIFICANCE OF THE STUDY
Explain who will benefit from the research (e.g., students,
universities, employers).
Discuss the practical applications of your findings (Output).
THE IMPACT OF BUDGETING PRACTICES ON FINANCIAL PERFORMANCE OF
SMALL AND MEDIUM ENTERPRISES (SMES)
PARAGRAPH 5
SIGNIFICANCE OF THE STUDY
This study is significant for various stakeholders as it provides both theoretical insights
and practical applications. SME owners will gain practical knowledge on how effective
budgeting can enhance financial performance, enabling them to implement structured
financial planning that improves profitability and sustainability (Seal, Garrison, & Noreen,
2021). This study aims to develop a budget tracker system or a budgeting manual tailored
for SMEs, providing them with accessible tools to implement effective budgeting practices.
Such an output can serve as a guideline for SME owners and financial managers, ensuring
consistency and accuracy in financial planning while fostering long-term business growth
(Horngren, Datar, & Rajan, 2021). Furthermore, policymakers and financial institutions may
use the findings to design targeted fiscal management knowledge programs and support
mechanisms that encourage SMEs to adopt structured budgeting methods, ultimately
contributing to economic stability and growth.
THANK YOU
