Cash management and financial performance of small scale businesses in Bombo Town Council in Luweero District-Uganda
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Date
2020-02
Authors
Journal Title
Journal ISSN
Volume Title
Publisher
Kampala International University, College of Economics and Management
Abstract
study sought to establish the effect of cash management on financial performance of small
scale Businesses in Bombo town council in Luweero-Uganda. It was guided by three specific
objectives, that included i) to determine the effect of disbursements on financial performance of
small scale businesses in Bombo town council in Luweero district, ii) to establish the effect of
cash collection on financial performance of small scale businesses in Bombo town council in
Luweero district and iii) to establish the effect of cash control on financial performance of small
scale businesses in Bombo town council in Luweero district. The study used a sample size of 367
respondents and employed cross-sectional, survey and descriptive research design to describe
the variables as the research instruments. Descriptive statistics were used in this study included
frequencies, means and regression analysis on variables. The findings revealed the following:
The findings indicated that disbursements significantly affects the financial performance of small
scale businesses in Bombo town council in Luweero district, the findings revealed that there is a
significant effect cash collection has on financial performance of small scale businesses in
Bombo town council in Luweero district, findings of this study also indicated a positive
significant effect cash control has on financial performance of small scale businesses in Bombo
town council in Luweero district. Still the conclusions were that; there is a positive significant
effect disbursements has on financial performance of small scale businesses in Bombo town
council in Luweero district, effective cash collection significantly improves financial
performance of small scale businesses in Bombo town council in Luweero district, cash control
highly affects the financial performance of small scale businesses in Bombo town council in
Luweero district Uganda. The researcher recommended that the small scale business owners
should develop a good system to monitor cash payments, record and track all the cash payments
so that there is effectiveness in payment of cash and ensure to cover loopholes if any in the
system to enhance financial performance. Small scale business owners and managers should
develop cash collection system for example alternatives ways of collecting cash from customers
which makes cash collection easy and flexible so as to boost financial performance, small scale
business owners should develop cash control system and make sure they always have a cash plan
that enables them have minimum cash balances at all times, this will help them control cash and
hence increase in the financial performance of their businesses and it Contributes to knowledge
by providing empirical evidence that cash management significantly affect the financial
performance of small scale businesses in Bombo town council in Luweero district-Uganda
The study will be useful to other Firms wishing to implement better cash flow management
practices as it will enable them to identify challenges posed while implementing best practices
and be able to mitigate such challenges.
Description
A Thesis report submitted to the college of economics and management in partial fulfillment of the requirements for the Award of Master’s degree in Business Administration (accounting and finance) of Kampala International University
Keywords
Cash management, Financial performance, Small scale businesses, Bombo Town Council, Uganda