Cash management and profitability in small and medium enterprises in Kampala Uganda
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Date
2011-12
Authors
Journal Title
Journal ISSN
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Publisher
Kampala International University, School of Business and Management
Abstract
The purpose of the study was to establish the relationship between cash management and
profitability and in small and medium enterprises (SMEs). The study was conducted in
Mukono leisure gardens
The objectives of the study were to find out examine the various cash management
policies used in small and medium enterprises (SMEs), factors influencing their
profitability and to establish the relationship between cash management and profitability
in small and medium enterprises.
The methodology used included descriptive research design, interview and questionnaires
as primary source of data and literature of various scholars as secondary source of data.
The data was presented, interpreted and analyzed using tables and percentages.
From the findings cash management was identified as a key to success of the organisation
as seen from the study. This is because cash management provides a basis for profitability
and survival of the organisation in the short and long run. It was therefore noted by
different scholars that SMEs should adopt cash management policies to stream line their
cash management in order to be profitable.
Basing on the survey, majority of the respondents also agreed that it is vital for the
organisation to adopt cash management polices that can enable it manage it cash for
example working capital management cash budgeting, cash planning and Forecasting and
investing the surplusĀ· :;ash to other profitable venture. This enable the organisation to
stream line it& cash and avoid cash problems.
It was concluded that cash management is strongly conĀ·elated to influence profitability of
the an organisation this is because when different cash management policies and tools are
used administered collectively in relation to other factors that influence profitability of
small and medium enterprises (SMEs) then they will be able the to succeed and remain
profitable.
It was recommended that the organisation revisit its cash management policies and
streamline them with the organisation goals and also adopt more the different cash
management policies that will enable it improve its profitability levels and net worth.
Description
A Research Dissertation Submitted to the School of Business and Management in Partial Fulfillment of the Requirements of the Award of the Degree of Bachelor of Business Administration of Kampala International University
Keywords
Cash management, profitability, medium enterprises