Influence of Cash Management on Business Sustainability

The purpose of the study was to investigate the influence of cash management on business sustainability of selected small-scale businesses in Makindye Division. The specific focus of the study was on how cash management influenced employees’ welfare, physical environment and return on investment of selected small-scale businesses. A cross-sectional survey design, largely

quantitative in approach, was used to collect data from a sample size of 377 respondents, selected from small-scale businesses. This was in accordance with Saunders, et al. (2009) and Labaree (2013) recommendation in regards to sample size choice. The primary data were collected using self-administered structured questionnaires and analysed using descriptive and inferential statistics in SPSS. The results indicated that cash management significantly influenced the sustainability of small-scale businesses in Makindye Division as reflected by the calculated correlation value: (r=0.732, p<0.01). In respect to specific variable of the study, cash management significantly and moderately influenced employees’ welfare at (r=0.512, p<0.01),

which means that improving cash management would moderately and positively improve employees’ welfare. Similarly, at calculated correlation value of(r=0.757, p<0.01), it was found that improved cash managementsignificantly influenced return on investment in small-scale businesses. However, at calculated correlation value of (r=-0.268, p>0.05), the study concluded that cash management negatively affected the physical environment. Nonetheless, this effect could be neglected since it was not significant. Thus, it is recommended that small-scale businesses should improve their cash management practices in order to cater for employees’ welfare, physical environment and return on investment to ensure sustainability of their firms.
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