Cash Management Practices and Performance of Small Business Enterprises in Tanzania
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SAUT
Abstract
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This study was conducted to find out the relationship between cash management practices and
performance of small business enterprises, focusing on the small businesses conducted around and
within the premises of the St. Augustine University of Tanzania in Mwanza city, Nyamagana
district, Luchelele ward. Cash management practices are essential for effective running and
performance as well as sustainability of the business. The study was approached both quantitatively
and qualitatively involving a sample of 167 businesses as respondents; and the research design was
descriptive.
The instruments used to collected data were questionnaire and interview, which were pre-tested
before the main study to ensure high validity and reliability. Questionnaires were used to collect
quantitative data and interviews were used to collect qualitative data. The data collected were
analysed using simple descriptive statistics and percentages, and then presented in tables for easy
interpretation and comparison.
The study found that there is a positive relationship between cash management practices and small
business enterprises performance as the previous studies reviewed have already established.
However, the small business enterprises studied have poor cash management practices as the
majority do not even prepare cash budgets and records keeping due to lack of knowledge and
negligence as some of them think that it is time consuming. Based on this, there is a need for training
programmes to equip them with business skills including cash management practices for better
business performance. Different studies conducted at different places and times locally and
internationally have established the same findings, which therefore make the present findings
reliable and generalizable.
Keywords
Cash Management