2023
DOI: 10.61426/sjbcm.v10i1.2578
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Cash Management Practices and Financial Performance of Small and Medium Sized Enterprises in Nairobi City County, Kenya”

GEORGE OGUDA ONYANGO,
BANCY WAWIRA MUCHIRA, PhD

Abstract: The significance of SMEs in economic development cannot be overlooked. Hence, the study examined the effect of cash management practices on financial performance of SMEs in Nairobi. The study focused on 19,672 SMEs in CBD. The sample size was 392.The pilot study was conducted on SMEs from Westlands and Langata sub-Counties. The results established that cash budgeting, cash control and cash forecasting are positively related to financial performance. Hence, SMEs should consider promoting budgeting in their oper… Show more

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Cited by 3 publications
(3 citation statements)
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“…The financial performance of SMEs has been low over the years. The low performance has been blamed on the effective utilization of management practices (Mwende, Muturi & Njeru 2019;Oteyo 2018;Erhabor & Ofiafoh 2020;Grabner, Isabella, Moers & Frank 2020;Ngure & Ali 2020;Sharma, & Ward, 2020;Vanhuyse, Bailey., & Tranter, 2021;Wanjuki, Githui & Omurwa, 2021). It is because of this problem that the researcher had to investigate if it is true that lack of proper implementation of cash management practices is the cause of poor performance of SMEs in Mombasa County.…”
Section: Statement Of the Problemmentioning
confidence: 99%
“…The financial performance of SMEs has been low over the years. The low performance has been blamed on the effective utilization of management practices (Mwende, Muturi & Njeru 2019;Oteyo 2018;Erhabor & Ofiafoh 2020;Grabner, Isabella, Moers & Frank 2020;Ngure & Ali 2020;Sharma, & Ward, 2020;Vanhuyse, Bailey., & Tranter, 2021;Wanjuki, Githui & Omurwa, 2021). It is because of this problem that the researcher had to investigate if it is true that lack of proper implementation of cash management practices is the cause of poor performance of SMEs in Mombasa County.…”
Section: Statement Of the Problemmentioning
confidence: 99%
“…Though it is recognised that the significant role of SMEs in economic growth (Bucher et al 2016), SMEs face a variety of challenges in handling their business, and the challenges come in different forms, including access to finance, technology adoption, market access, human capital development, and infrastructure (Zuraimi et al 2013;Ballesteros and Domingo 2015). The challenges, however, may arise due to SMEs' poor creditworthiness and lack of collateral to obtain external funds, having unskilled and inexperience workers, low level of technological capabilities, failure to read market opportunities, and misinterpreting market demands (Ahmad and Seet 2009;Onyango and Achieng 2013). Furthermore, SMEs find it challenging to develop redundancy or safety stock, and they have lesser capacities to collaborate with or influence the behaviour of other supply chain partners due to their size, product volume, and resources (Ali et al 2017;Polyviou et al 2019).…”
Section: Scrm In Smesmentioning
confidence: 99%
“…State Corporations serve as the basis for the formulation and implementation of State regulations in national economies. State Corporations act as strategic coordinators of government activities as they support positive institutional and structural economic reforms towards achieving the objectives of the society while increasing public ownership (Onyango, 2016).…”
Section: Introductionmentioning
confidence: 99%