Working Capital Management and Business Growth: A Case Study of Katantazi Enterprises, In Kansanga Makindye Division Kamp Ala District

Abstract

This study was carried out with a purpose of establishing the effect of working capital management on growth of business organizations. The study was carried out basing on the following objectives; to establish the effective means of managing working capital, to establish the relationship between working capital and business growth and to examine the different factors that affect business grow. The methodology used both primary and secondary data sources through questionnaires, interviews and reviewing related literature respectively. The type of research was descriptive in nature and data was mostly word processed by use of computer system. The findings revealed various management techniques for the various components of working capital, other factors that affect business growth and the relationship between working capital and business growth and showed that strong relationship exist between working capital and business growth through liquidity and profitability by maintaining a shorter net cash cycle. It was also established that if growth was to be realized in business organizations managers need to cope up with modern approaches to working capital management like economic order quantity internal controls over cash receipts and payments quickening the collection of cash maintain proper budgeting techniques and maintain good relationship with all business stake holders.