Financial Forecasting is the practice of
projecting the quantitative impact of trends and changes in
an operating environment on future operations. Lack of
business skills to foresee business issues are among the
factors which contribute to SMEs failure. This research
aimed at assessing Financial Forecasting among SMEs. The
general objective of the study is to assess Financial
Forecasting practices in SMEs and whether they contribute to
SMEs' performance. The study was conducted on SMEs owners
at Morogoro Municipal in Tanzania. The study assessed the
level at which Financial Forecasting has been practiced in
SMEs. The study identified factors that hinder SMEs
owners/managers to practice Financial Forecasting. Lastly,
the study suggested ways to motivate SMEs practice Financial
Forecasting in their businesses.