Practice of Cash Management and Growth of Smes in Awka South Local Government Area
Abstract
The study examines the effect of cash management and the growth of SMES in the Awka South local government area. Awka South is one of the LGs of Anambra State. The study adopted a descriptive research design. The study was conducted in Anambra State. The population of the study consisted of all the SME operators in the study area. The sampling technique was used to select 383 respondents, which constituted the sample size for the study. The main instrument of the study was a questionnaire. Face and content validation of the instrument was carried out to ensure that the instrument has the accuracy, appropriateness, completeness, and language of the study under consideration. The Cronbach Alpha technique was used to determine the level of reliability of the instrument. The reliability coefficient obtained was 0.84, which was high enough to justify the use of the instrument. The researcher subjected the data generated for this study to appropriate statistical techniques, such as descriptive statistics and t-test analysis. The test for significance was done at 0.05 alpha levels. Based on the study's data analysis, it was concluded that the SME owners lacked sufficient knowledge of cash management practises and had not kept track of their cash payments and receipts. rarely prepares the cash budget and frequently operates bank accounts in current accounts. The study recommended that the management of SMEs employ competent people who can design business plans, prepare cash flow projections, and budget cash; the management must also ensure budgetary control, an internal control system, and profitable items are in place and under strict control, and improve their credit policies. The management must avoid holding too many inventories, avoid overtrading, avoid too many investments in capital expenditure, control their spending habits on luxuries, and retain profits for further growth.
References
Abola (2007). Sunday Monitor, Business Column, November 26, 2007, why banks don’t lend to Local businesses
Abor J. (2010), Issues in SME Development in Ghana and South Africa, International Research Journal of Finance and Economics -Issue 39 (2010) 225 Euro J. Publish. Inc http://www.eurojournals.com/ finance.htm, Research Papers No. 41, ADB, Abidjan
Abubarkar J, Mad CA, Abdul LR (2006). Liberalization and globalization, a case of Naza and a lesson to SMEs. Proceeding of
Persidangsaan ISK 2006, Kula Lumper, Universiti Utara Malaysia
Alan L (2012). What Is Firm's Cash Flow to Creditors? eHow.com http://www.ehow.com/info_10028012_firms-cash-flowcreditors.html#ixzz23bGrAK8m
Alibaster S (2012). How to Manage Your Cash Flow, eHow.com http://www.ehow.com/how_2324388, manage- cash-flow.html#ixzz
23bKgUHbL, Demand Media, Inc.
Asian Development Bank (2005). SME Development in Pakistan; analyzes the constraint to growth.
Boysana LM (2006). An explanation of the factors that led to failure of Small Businesses in Kagiso TownShip BPP Professional Education,
(2007), Planning, Control and Performance, Fifth Edition, BBP learning Media Limited
Brown RH (2010). Cash Flow best practices for SMEs, Rita Herron Publishing, USA Bureau of Economic Analysis (2006).Survey of
Current Business Business Encyclopedia, (2012), Entrepreneurs of Business Encyclopedia, Entrepreneur Media, Inc. Businessdictionary.com, (2012)
Caryforth C, Neild M (2007). Intermediate Business, Tenth Edition, The Bath Press limited.
Char AK, Yaso MR, Hassan Z (2010). Small Medium Enterprises
Cheng JL (2009). Six Sigma and TQM in Taiwan, An empirical study of discriminate analysis, Total Quality Management (3), 311–326.
CIMA (2005). Cash Flow Management, Enquiry Line, 020 7663 5441©
Crown copyright 20
Clark III M, Moutray C (2004). Working paper, Office of Advocacy, U.S. Small Business Administration, Retrieved from:
http://www.sba.gov/ advo/research/wkpapers.html Last retrieved 8 February 2019
Codjia M (2012). The Relationship Between Internal Controls and Cash Management, eHow.com
Davidson P, Klofsten M (2003). The business platform: Developing an instrument to gauge and to assist the development of young firms.
J, Small Bus. Manag. 41(1), 1–26.
Denby N, Thomas P (2005). GSE National Business Studies, First Edition McGraw hill book Company
Dookey D, Dransfield R, Goymer J, Gay P, Richards C (2007). BTE National Business, Second EditionHarcourt Education limitedHeinemann.
Dransfied R, Richards C, Gay P, Dooley D (2004). BTEC National Business, First Edition, Heinemann Educational Publisher,
Heinemann Publisher
Klofsten M (2010). The business platform: Entrepreneurship & management in the early stages of a firm’s development, 3rd
Edition. Luxemburg: TII asbl.data effects on the classification accuracy of probity, ID3 and neural networks. Contemporary
Accounting Research 9(1), 306–328.
Kozlow R (2006). Globalization, Offshoring, and Multinational Companies: What are the Questions, and How Well Are We Doing
Answering Them?, Mimeo.
Lawrence PW, JP Jones (2001). Business Turnaround: resolving financial distress,’’ J. Appl. Manag. Entrepreneurship 6(1), pp.105-
120
Ladzani WM, Vav Vuuren JJ (2020). Entrepreneurship Trainningsfor Emerging SMEs in South Africa. J. Small Bus. Manag. 40:154-161
Longenecker JG, Moole CW, Petty JW (2003). Small Business Management, An Entrepreneurial Emphasis, 12th Edition, Canada Thomson
Machikfa T, Ueki Y (2010). Special Architectures of the Production Network in Southern Asia; Empirical Evidence from firm level daf
Marcous I, Gillespie A, Martin B, Surridge M, Wall M (2003).
Hwang EJ, Majorie JT, Norton C (2005). Strategic Management and Financial in South Korean Apparent Retail Stores
Maysami RC (2009). Understanding and Controlling Cash Flow, Financial Management Series, U.S. Small Business Administration
Mbaguta R (2020). The Uganda Government Policy Framework and Strategy for the Promotion and Development of SMEs’ in
Proceeding of the Symposium on Modalities for Financing SMEs in Uganda, United Nation Conference on Trade and
Development
Wajahat SHN (2019). J. Pub. Admin. Gov. ISSN 2161-7104, 2019, Vol. 1, No. 2, www.macrothink.org/jpag
Yamane T (1967). Statistics, An Introductory Analysis, 2nd Ed, New York: Harper and Row.
Yaqub MZ, Husain D (2010). Micro-entrepreneurs: Motivations Challenges and Success Factors, Int. Res. J. Fin. Econ.
