Cash management and performance of microfinance institutions in Hargeisa, Somaliland
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Date
2017-05
Authors
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Publisher
Kampala International University, College of Economics & management.
Abstract
The study was to establish the level of cash management in the microfinance institutions in Hargeisa Somaliland. The objective included to establish the level of cash management in the microfinance institutions. To establish level of performance of the microfinance institutions and determine relationship between cash management and performance of the microfinance institutions in Hargeisa Somaliland. The study was based on descriptive correlation and a cross sectional survey designs. The study concentrated on the five microfinance institutions located in Hargeisa with the sample population of 112.Questionnaires were used to collect data and a response rate of 95(106) questionnaires returned back. The study findings reveal that cash management in microfinance institutions in Hargeisa, Somaliland was poor and it was evident with the overall mean (M=2.53, Standard Deviation=l .49) that refers to poor in the rating scale. Performance of micro finance institution in Hargeisa the results show a fair performing business
and this finding was supported by the overall mean average of 2.75 and standard deviation of.90 there was a significant relationship between cash management and performance of microfinance institutions. The researcher concludes that cash management in the microfinance institutions are generally poor with disbursements management, debtor’s management and cash collection revealing fair and poor response rates implying that cash management was ineffective on the dimensions mentioned. On the second research objective, the performance of the microfinance institutions as regards profitability, sales and market growth seemed fair but many of their individual constructs had poor features which are a precursor to poor management of the performance under takings and finally on the third objective the study on the relationship
between cash management and performance of microfinance institutions based on the null hypothesis is rejected as the correlation between the two variables reveals that there is a significant relationship between the study variables. Analysis of variance also suggested that
there was a significant effect between the variables, the researcher in that regard concluded that no significant relationship existed between cash management and performance of microfinance institutions. The researcher therefore recommends for enhancing cash management and
improving the performance dimensions of the microfinance institutions in Hargeisa, Somaliland as means of enabling the microfinance institutions to operate and attain their goals and objectives
Description
A research dissertation submitted to the College of Economics and Management in partial fulfillment of requirements for the award of Master in Business Admiration’ (Banking and Finance) of Kampala International University
Keywords
Cash management, Microfinance Institutions, Performance, Somaliland