THE EFFECTS OF CASH MANAGEMENT ON THE FINANCIAL PERFORMANCE OF ENTERPRISES: EVIDENCE OF SELECTED MICRO AND SMALL ENTERPRISES IN BERTOUA MUNICIPALITY
By: Tambe Geraldine Arrah Malle | Department of Business and Management Studies | Accounting and Finance
ABSTRACT
Micro and Small Enterprises (MSEs) play significant roles in the economic landscape of economies. But the roles they play now is with mixed perception as most of them rather face problems with their financial performance. This has been linked to the way they manage their cash management processes. It is against this backdrop that this study sort to assess the effects of cash management on the financial performance of MSEs in Bertoua municipality. The study has as specific objectives to establish the effects of cash planning on the financial performance of MSEs in Bertoua municipality, to evaluate the influence of cash budgeting on the financial performance of MSEs in Bertoua municipality, to determine the effects of cash control on the financial performance of MSEs in Bertoua and lastly the study seeks to investigate the effects of cash collection on the financial performance of MSEs in Bertoua municipality. The study was cross sectional in nature and the study population for this work included some selected registered micro and small enterprises in Bertoua municipality. This comprised of the owners and cashiers of these MSEs. The researcher worked with 50 out of the 100 enterprises which therefore made a total of 100 respondents as the target population for the study. This study adopted a multi stage sampling technique that comprised of stratified sampling, random and purposive sampling techniques. Equally, the sample size for this study was made up of 50 enterprises and since the researcher had decided to work with two workers per enterprise, this therefore gave a total of 100 respondents as the sample size of the study sample of 50 enterprises. The study made use of both primary and secondary data equally. Data were analyzed using Pearson product moment correlation coefficient to get the effects between cash management and financial performance of these MSEs in Bertoua municipality. Also, tables were used to present the data. Base on the specific objectives, the findings revealed that there exist a significant positive effect between cash planning, cash budgeting, cash control and cash collection and the financial performance of MSEs in Bertoua municipality. And from there, the study brought forward some recommendations such as a regular supervision via the sending of control team should be effected by the government through the Ministry of Small and Medium Sized enterprise.
Keywords: Cash management, cash planning, cash budgeting, cash control, cash collection, financial performance, micro enterprise, and small enterprises.