Financial Management Practices and Small-Scale Businesses' Profitability, from the Viewpoint of Kabale Municipality, Uganda

Published: Jan 11, 2023

Abstract:

Purpose: The study's goal was to investigate how financial management practices impact small businesses' profitability.

Research methodology: Descriptive and correlational research designs were used in the study. The study used a multi-regression analysis to estimate how financial management practices impact profitability.

Results: The research showed that financial management strategies had a big effect on profitability. Management of working capital and cash has a substantial correlation with profitability, according to the evidence. The study suggests that in order to see improvements in their profitability levels, small businesses should establish strong financial management methods. Owners of small businesses must pay close attention to the dynamics of their working capital and cash management because these factors have a significant impact on their profitability levels. To balance operating costs and profitability, small firms should think about cost-cutting measures.

Limitations: This study was only conducted within Kabale Municipality and future studies should be conducted in the entire region.

Contribution: The study identified a trio of factors – operational expenses, microeconomic factors, and individual characteristics that constrain profitability.

Keywords:
1. Financial Management Practices
2. Cash Management
3. Working Capital Management
4. Profitability
5. Small-Scale Enterprises
Authors:
1 . Marus Eton
https://orcid.org/0000-0002-9057-8484
2 . Fabian Mwosi
3 . Eliab Byamukama Mpora
How to Cite
Eton, M., Mwosi, F., & Mpora, E. B. (2023). Financial Management Practices and Small-Scale Businesses’ Profitability, from the Viewpoint of Kabale Municipality, Uganda. Annals of Management and Organization Research, 3(3), 165–178. https://doi.org/10.35912/amor.v3i3.1311

Downloads

Download data is not yet available.
Issue & Section
References

    Abuzayed, B. (2012). Working capital management and firms’ performance in emerging markets: the case of Jordan. International Journal of Managerial Finance.

    Afrifa, G. A., & Padachi, K. (2016). Working capital level influence on SME profitability. Journal of Small Business and Enterprise Development.

    Agyei-Mensah, B. K. (2010). Financial management practices of small firms in Ghana: An empirical study. Available at SSRN 1597243.

    Ali, A. Y. S., & Isak, A. O. (2019). Financial management practices and financial performance of service companies in Somalia. Financial Management, 10(4).

    allAfrica.com. (2013). Small Business Cash flow management. Retrieved from https://search.proquest.com/docview/135373019

    Almwalla, M. (2012). The Impact of Working Capital Management Policies on Firm's Profitability and Value: The Case of Jordan. International Research Journal of Finance and Economics, 03.

    Arshad, Z., & Gondal, M. Y. (2013). Impact of working capital management on profitability a case of the Pakistan cement industry. Interdisciplinary Journal of contemporary research in business, 5(2), 384-390.

    Asare, C., & Angmor, P. L. (2015). The Effect of Debt Financing on the Profitability of SMEs in Accra Metropolis. ADRRI Journal of Arts and Social Sciences, 13(2), 1-11.

    Banerjee, R. (2014). SMEs, financial constraints and growth.

    Bismark, O., Kofi, A., Kofi, O. A., & Eric, H. (2018). Impact of financial management practices on the growth of small and medium scale enterprises in Ghana: The case of Birim Central Municipality. International Journal of Innovation and Research in Educational Sciences, 5(2), 177-184.

    Bobitan, N., & MIOC, A. D. (2011). USING INFORMATION ON THE CASH FLOW SITUATION IN SUBSTANTIATING ENTITIES'DECISIONS. Agricultural Management/Lucrari Stiintifice Seria I, Management Agricol, 13(3).

    Chowdhury, A. Y., Alam, M. Z., Sultana, S., & Hamid, M. K. (2018). Impact of working capital management on profitability: A case study on pharmaceutical companies of Bangladesh. Journal of Economics, Business and Management, 6(1), 27-35.

    Christensen, L. B., Johnson, R., & Turner, L. (2010). Research methods, design, and analysis 11th ed. Boston MA, Alyn and Bacon.

    Cooper, D. R., & Schindler, P. S. (2013). Business Research Methods (12th ed.): McGraw-Hill Education.

    Creswell, J. W. (2014). Research design: qualitative, quantitative, and mixed methods approaches.

    Drbie, M., & Kassahun, T. (2013). Deterrents to the success of micro and small enterprises in Akaki-Kality Sub-City. Journal of Business and administrative Studies, 5(2), 1-33.

    Emmanuel, M., & Mulyungi, P. (2018). Effect of Financial Management Practices on Profitability of Agricultural Processing Enterprises in Rwanda. International Journal of Science and Research (IJSR), 7(10), 627-632.

    Enow, S. T., & Kamala, P. (2016). The accounts payable management practices of small, medium and micro enterprises in the Cape Metropolis, South Africa. Investment management and financial innovations, 13(1), 77-83.

    Endri, E., Sari, A. K., Budiasih, Y., Yuliantini, T., Kasmir, K. (2020a). Determinants of profit growth in food and beverage companies in Indonesia. The Journal of Asian Finance, Economics and Business, 7(12), 739–748.

    Endri, E., Lisdawati., Susanti, D., Hakim, L., Sugianto, S. (2020b). Determinants of profitability: Evidence of the pharmaceutical industry in Indonesia. Systematic Review Pharmacy, 11(6), 587–597

    Eton, M., Fabian, M., Siraje, K., Benard, P. O., & Edward, A. (2020). Internal Control Systems, Working Capital Management and Financial Performance of Private Institutions in Uganda: An Empirical Study in Mbarara District.

    Eton, M., Gilbert, U., Fabian, M., Benard, P. O., & Dennis, O. (2019). Cash management and financial performance of business firms in Northern Uganda a Case of Lira District.

    Eton, M., Mwosi, F., Mutesigensi, D., & Ebong, C. (2018). The role of financial management in supporting firm growth in Uganda, the Case of West Nile Region. SSRG International Journal of Economics and Management Studies, 5(4), 1-8.

    Festus, A. (2011). Cash management and growth of Small Scale business in Ntungamo Market. College of Business (Doctoral dissertation, MAKERERE UNIVERSITY.

    Fitzsimmons, J., Steffens, P., & Douglas, E. (2005). Growth and profitability in small and medium sized Australian firms. Proceedings AGSE Entrepreneurship Exchange, Melbourne.

    Getahun, M. (2016). The challenge and prospects of small scale enterprise in Ethiopia: A survey of some selected small scale enterprise in Addis Ababa City. International Journal of Scientific and Research Publications, 6(5), 617-626.

    Ifeduni, A. S., & Charlse, O. (2018). The determinants of profitability of manufacturing firms in Nigeria. International Journal of Economics, Commerce and Management, 6(4), 479-493.

    Jennifer, K., & Dennis, O. (2015). Financial management practices on growth of small and medium enterprises: a case of manufacturing enterprises in Nairobi County, Kenya. IOSR Journal of Business and Management, 17(8), 65-77.

    Kakeeto, F., Micheal, T., Pastor, K., & Osunsan, O. (2017). Cash Management and Organizational Profitability in Gumutindo Coffee Cooperative Enterprise Limited (GCCE), Mbale District Uganda. Journal of Research in Business and management, 5(5), 33-40.

    Khalid, A. B., & Muturi, W. (2021). Effect of Financial Management Practices on Financial Performance of Manufacturing Firms in Bosaso City Puntland, Somalia. International Journal of Social Sciences and Information Technology, 7(2), 11-26.

    Kloko, D. M. E., & Bayunitri, B. I. (2020). Comparison analysis of financial performance telecommunication service which has and has not applied PSAK 73. International Journal of Financial, Accounting, and Management, 2(2), 145-157.

    Kumar, A., & Nagpal, S. (2011). Strategic cost management–suggested framework for 21st Century. Journal of Business and Retail Management Research, 5(2), 118-130.

    Lakew, D. M., & Rao, D. (2009). Effect of financial management practices and characteristics on profitability: A study on Business Enterprises in Jimma Town, Ethiopia. National montly Journal of research in commerce and management, 2(5), 64-75.

    López Salazar, A., Contreras Soto, R., & Espinosa Mosqueda, R. (2012). The impact of financial decisions and strategy on small business competitiveness. Global Journal of business research, 6(2), 93-103.

    Maduekwe, C. C., & Kamala, P. (2016). Performance measurement by small and medium enterprises in Cape Metropolis, South Africa. Problems and Perspectives in Management, 14(2), 46-55.

    Mandipa, G., & Sibindi, A. B. (2022). Financial Performance and Working Capital Management Practices in the Retail Sector: Empirical Evidence from South Africa. Risks, 10(3), 63.

    Margaretha, F., & Supartika, N. (2016). Factors affecting profitability of small medium enterprises (SMEs) firm listed in Indonesia Stock Exchange. Journal of Economics, Business and Management, 4(2), 132-137.

    Matei, A.-C., & Onofrei, M. (2021). Financial Management Practices for Farm Profitability.

    Mazzarol?, T., Reboud, S., & Clark, D. (2015). The financial management practices of small to medium enterprises. Paper presented at the 28th Annual SEAANZ Conference Proceedings 2015.

    Mbaaya, L. (2013). Financial performance of football clubs in Kenyan Premier League. Unpublished, 4.

    Mbawuni, J., Mbawuni, M. H., & Nimako, S. G. (2016). The impact of working capital management on profitability of petroleum retail firms: Empirical evidence from Ghana. International Journal of economics and Finance, 8(6), 49.

    Mbroh, J. K. (2012). Cash management practices of small business owners in the Cape Coast Metropolitan Area of Ghana. Asian economic and financial review, 2(1), 40-58.

    Melgarejo, M., Rodríguez, C., & Torres, J. (2022). Effects of the adoption of management control practices on profitability: evidence from Latin America. Spanish Journal of Finance and Accounting/Revista Española de Financiación y Contabilidad, 51(1), 1-20.

    Miji?, K., Nuševa, D., & Jakši?, D. (2018). The determinants of SMEs profitability in the wholesale and retail sector in Serbia. Teme, 097-111.

    Mohammed, K. A., & Suleiman, A. (2022). The effect of financial management practices on the performance of micro and small enterprises in Keffi, Nasarawa State, Nigeria. Direct Research Journal of Management and Strategic Studies, 3(3), 37-48.

    Muguchia, M. M. (2018). The Effect Of Financial Management Practices On The Financial Performance Of The Companies Listed At Nairobi Securities Exchange.

    Muneer, S., Ahmad, R. A., & Ali, A. (2017). Impact of financial management practices on SMEs profitability with moderating role of agency cost. Information Management and Business Review, 9(1), 23-30.

    Musah, A. (2017). Benefits and challenges of bookkeeping and accounting practices of SMEs and its effect on growth and performance in Ghana. Journal of Accounting, Business and Management (JABM), 24(2), 16-36.

    Musah, A., Gakpetor, E. D., & Pomaa, P. (2018). Financial management practices, firm growth and profitability of small and medium scale enterprises (SMEs). Information Management and Business Review, 10(3), 25-37.

    Mushaho, K. N., Mbabazize, M., & Shukla, J. (2015). The Effect of Capital Budgeting, Investment Decision On Organizational Performance In Rwanda. A Case study of Bahresa Grain Milling Rwanda Ltd. International Journal of Small Business and Entrepreneurship Research, 3(5), 100-132.

    Muthama, K. M., & Warui, F. (2021). FINANCIAL MANAGEMENT PRACTICES AND PERFORMANCE OF DEVOLVED SUB-COUNTY TREASURIES IN MAKUENI COUNTY, KENYA. Kenyatta University.

    Ndayanale, E. (2013). Namibia crawls to profitability. Master’s thesis. University of Namibia, Windhoek, Namibia.

    Nuriyah, A., Endri, D., Yasid, M. (2018). Micro, small-financial financing and its implications on the profitability of Sharia banks. DeReMa (Development Research of Management): Journal of Management, 13(2). 175–197.

    Nwonye, N. G., & Ugwuegbe, S. U. (2019). Testing the validity of free cash flow hypothesis: Evidence from Nigeria. International Journal of Financial, Accounting, and Management, 1(3), 155-165.

    Nyambane, D. O., & Ouma, B. O. (2017). Cash Management and Profitability of cement Industries in Kenya.

    Nzitunga, J. B. (2019). Impact of Working Capital Management Practices on Profitability in State-Owned Enterprises (SOEs). Management, 9(2), 37-47.

    OECD. (2017). Enhancing The Contributions of SMEs in A Global and Digitalised Economy. Paris: Meeting of the OECD Council.

    Oladipupo, A., & Okafor, C. (2013). Relative contribution of working capital management to corporate profitability and dividend payout ratio: Evidence from Nigeria. International Journal of Business and Finance Research, 3(2), 11-20.

    Olayinka, A. A. (2022). Financial statement analysis as a tool for investment decisions and assessment of companies’ performance. International Journal of Financial, Accounting, and Management, 4(1), 49-66.

    Onwumere, J., Ibe, I. G., & Ugbam, O. (2012). The impact of working capital management on profitability of Nigerian firms: A preliminary investigation. European Journal of Business and Management, 4(15), 192-201.

    Oranefo, P., & Egbunike, C. (2022). Debt Financing and Firm Valuation of Quoted Non-Financial Firms in Nigeria Stock Exchange. International Journal of Financial, Accounting, and Management, 4(2), 199-218.

    Pais, M. A., & Gama, P. M. (2015). Working capital management and SMEs profitability: Portuguese evidence. International Journal of Managerial Finance.

    Perényi, Á., & Yukhanaev, A. (2016). Testing relationships between firm size and perceptions of growth and profitability: An investigation into the practices of Australian ICT SMEs. Journal of Management & Organization, 22(5), 680-701.

    Popa, A.-E., & Ciobanu, R. (2014). The financial factors that influence the profitability of SMEs. International Journal of Academic Research in Economics and Management Sciences, 3(4), 177.

    Prijadi, R., & Desiana, P. M. (2017). Factors Affecting the Profitability and Growth of Small & Medium Enterprises (SMEs) in Indonesia. International Journal of Economics and Management (IJEM), 35 – 44.

    Richard, K. A., Dadson, A.-V., & Peter, L. A. (2013). Working capital management and profitability: Evidence from Ghanaian listed manufacturing firms. Journal of economics and international finance, 5(9), 373-379.

    Sarkar, C. R., & Sarkar, A. (2013). Impact of Working Capital Management on Corporate Performance: An Empirical Analysis of Selected Public Sector Oil & Gas Companies in India. International Journal of Financial Management, 3(2).

    Saunders, M. N. K., Lewis, P., & Thornhill, A. (2015). Research Methods for Business Students

    Shahnia, C., Purnamasari, E., Hakim, L., & Endri, E. (2020). Determinant of profitability: Evidence from trading, service and investment companies in Indonesia. Accounting, 6(5), 787-794.

    Siaw, F. (2014). Effect of demand side factors on access to external finance by micro, small and medium manufacturing enterprises in Kumasi metropolis, Ghana. Unpublished Phd Thesis, School of Business, Kenyata University, Kenya.

    Stoudt, B. G. (2014). Quantitative methods. In: Coghlan, D. & Brydon-Millers, M (eds). The stage encyclopaedia of Action Research. London: Sage Pub.Inc 1-8

    Syafri, M. (2012). Factors affecting bank profitability in Indonesia. Paper presented at the The 2012 International Conference on Business and Management.

    Tauringana, V., & Afrifa, G. A. (2013). The relative importance of working capital management and its components to SMEs' profitability. Journal of Small Business and Enterprise Development.

    Turyahebwa, A., Arthur, S., & Derick, S. (2013). Financial management practices and business performance of small and medium enterprises in western Uganda. African journal of business management, 7(38), 3875-3885.

    Turyahebwa, A., Sunday, A., Aluonzi, E., Yahaya, B., & Sumil, N. (2013). Business efficiency in Small and Medium Enterprises (SMEs) in selected districts in western Uganda.

    Uwuigbe, U., Jafaru, J., & Ajayi, A. (2012). Dividend policy and firm performance: A study of listed firms in Nigeria. Accounting and management information systems, 11(3), 442-454.

    Vijayakumar, A. (2011). Management of corporate liquidity and profitability: an empirical study. International Journals of Marketing and Technology, 1(6), 156-175.

    Warrens, M. J. (2014). On Cronbach’s alpha as the mean of all possible-split alphas. Advances in Statistics.

    Wignaraja, G., & O’Neil, S. (1999). A Study of Small Firm Exports, Policies and Support Institutions in Mauritius. Export and Industrial Development Division.

    Yamane, T. (1967). An introductory analysis of Statistics: New York: Harper and Row.

    Yensu, J., Yiadom, E. K., & Awatey, S. (2016). Financial Management Practices and Profitability of Business Enterprises in Obuasi Municipality, Ghana. Financial Management, 7(16).

    Yohanes, D., Debela, K., & Shibru, W. (2018). Effect of financial management practices on profitability of small-scale enterprise: Case Study Hawassa City Administration, Ethiopia. IOSR Journal of Business and Management, 20(6), 39-45.

    Yunis, M., Tarhini, A., & Kassar, A. (2018). The role of ICT and innovation in enhancing organizational performance: The catalysing effect of corporate entrepreneurship. Journal of Business Research, 88, 344-356.

  1. Abuzayed, B. (2012). Working capital management and firms’ performance in emerging markets: the case of Jordan. International Journal of Managerial Finance.
  2. Afrifa, G. A., & Padachi, K. (2016). Working capital level influence on SME profitability. Journal of Small Business and Enterprise Development.
  3. Agyei-Mensah, B. K. (2010). Financial management practices of small firms in Ghana: An empirical study. Available at SSRN 1597243.
  4. Ali, A. Y. S., & Isak, A. O. (2019). Financial management practices and financial performance of service companies in Somalia. Financial Management, 10(4).
  5. allAfrica.com. (2013). Small Business Cash flow management. Retrieved from https://search.proquest.com/docview/135373019
  6. Almwalla, M. (2012). The Impact of Working Capital Management Policies on Firm's Profitability and Value: The Case of Jordan. International Research Journal of Finance and Economics, 03.
  7. Arshad, Z., & Gondal, M. Y. (2013). Impact of working capital management on profitability a case of the Pakistan cement industry. Interdisciplinary Journal of contemporary research in business, 5(2), 384-390.
  8. Asare, C., & Angmor, P. L. (2015). The Effect of Debt Financing on the Profitability of SMEs in Accra Metropolis. ADRRI Journal of Arts and Social Sciences, 13(2), 1-11.
  9. Banerjee, R. (2014). SMEs, financial constraints and growth.
  10. Bismark, O., Kofi, A., Kofi, O. A., & Eric, H. (2018). Impact of financial management practices on the growth of small and medium scale enterprises in Ghana: The case of Birim Central Municipality. International Journal of Innovation and Research in Educational Sciences, 5(2), 177-184.
  11. Bobitan, N., & MIOC, A. D. (2011). USING INFORMATION ON THE CASH FLOW SITUATION IN SUBSTANTIATING ENTITIES'DECISIONS. Agricultural Management/Lucrari Stiintifice Seria I, Management Agricol, 13(3).
  12. Chowdhury, A. Y., Alam, M. Z., Sultana, S., & Hamid, M. K. (2018). Impact of working capital management on profitability: A case study on pharmaceutical companies of Bangladesh. Journal of Economics, Business and Management, 6(1), 27-35.
  13. Christensen, L. B., Johnson, R., & Turner, L. (2010). Research methods, design, and analysis 11th ed. Boston MA, Alyn and Bacon.
  14. Cooper, D. R., & Schindler, P. S. (2013). Business Research Methods (12th ed.): McGraw-Hill Education.
  15. Creswell, J. W. (2014). Research design: qualitative, quantitative, and mixed methods approaches.
  16. Drbie, M., & Kassahun, T. (2013). Deterrents to the success of micro and small enterprises in Akaki-Kality Sub-City. Journal of Business and administrative Studies, 5(2), 1-33.
  17. Emmanuel, M., & Mulyungi, P. (2018). Effect of Financial Management Practices on Profitability of Agricultural Processing Enterprises in Rwanda. International Journal of Science and Research (IJSR), 7(10), 627-632.
  18. Enow, S. T., & Kamala, P. (2016). The accounts payable management practices of small, medium and micro enterprises in the Cape Metropolis, South Africa. Investment management and financial innovations, 13(1), 77-83.
  19. Endri, E., Sari, A. K., Budiasih, Y., Yuliantini, T., Kasmir, K. (2020a). Determinants of profit growth in food and beverage companies in Indonesia. The Journal of Asian Finance, Economics and Business, 7(12), 739–748.
  20. Endri, E., Lisdawati., Susanti, D., Hakim, L., Sugianto, S. (2020b). Determinants of profitability: Evidence of the pharmaceutical industry in Indonesia. Systematic Review Pharmacy, 11(6), 587–597
  21. Eton, M., Fabian, M., Siraje, K., Benard, P. O., & Edward, A. (2020). Internal Control Systems, Working Capital Management and Financial Performance of Private Institutions in Uganda: An Empirical Study in Mbarara District.
  22. Eton, M., Gilbert, U., Fabian, M., Benard, P. O., & Dennis, O. (2019). Cash management and financial performance of business firms in Northern Uganda a Case of Lira District.
  23. Eton, M., Mwosi, F., Mutesigensi, D., & Ebong, C. (2018). The role of financial management in supporting firm growth in Uganda, the Case of West Nile Region. SSRG International Journal of Economics and Management Studies, 5(4), 1-8.
  24. Festus, A. (2011). Cash management and growth of Small Scale business in Ntungamo Market. College of Business (Doctoral dissertation, MAKERERE UNIVERSITY.
  25. Fitzsimmons, J., Steffens, P., & Douglas, E. (2005). Growth and profitability in small and medium sized Australian firms. Proceedings AGSE Entrepreneurship Exchange, Melbourne.
  26. Getahun, M. (2016). The challenge and prospects of small scale enterprise in Ethiopia: A survey of some selected small scale enterprise in Addis Ababa City. International Journal of Scientific and Research Publications, 6(5), 617-626.
  27. Ifeduni, A. S., & Charlse, O. (2018). The determinants of profitability of manufacturing firms in Nigeria. International Journal of Economics, Commerce and Management, 6(4), 479-493.
  28. Jennifer, K., & Dennis, O. (2015). Financial management practices on growth of small and medium enterprises: a case of manufacturing enterprises in Nairobi County, Kenya. IOSR Journal of Business and Management, 17(8), 65-77.
  29. Kakeeto, F., Micheal, T., Pastor, K., & Osunsan, O. (2017). Cash Management and Organizational Profitability in Gumutindo Coffee Cooperative Enterprise Limited (GCCE), Mbale District Uganda. Journal of Research in Business and management, 5(5), 33-40.
  30. Khalid, A. B., & Muturi, W. (2021). Effect of Financial Management Practices on Financial Performance of Manufacturing Firms in Bosaso City Puntland, Somalia. International Journal of Social Sciences and Information Technology, 7(2), 11-26.
  31. Kloko, D. M. E., & Bayunitri, B. I. (2020). Comparison analysis of financial performance telecommunication service which has and has not applied PSAK 73. International Journal of Financial, Accounting, and Management, 2(2), 145-157.
  32. Kumar, A., & Nagpal, S. (2011). Strategic cost management–suggested framework for 21st Century. Journal of Business and Retail Management Research, 5(2), 118-130.
  33. Lakew, D. M., & Rao, D. (2009). Effect of financial management practices and characteristics on profitability: A study on Business Enterprises in Jimma Town, Ethiopia. National montly Journal of research in commerce and management, 2(5), 64-75.
  34. López Salazar, A., Contreras Soto, R., & Espinosa Mosqueda, R. (2012). The impact of financial decisions and strategy on small business competitiveness. Global Journal of business research, 6(2), 93-103.
  35. Maduekwe, C. C., & Kamala, P. (2016). Performance measurement by small and medium enterprises in Cape Metropolis, South Africa. Problems and Perspectives in Management, 14(2), 46-55.
  36. Mandipa, G., & Sibindi, A. B. (2022). Financial Performance and Working Capital Management Practices in the Retail Sector: Empirical Evidence from South Africa. Risks, 10(3), 63.
  37. Margaretha, F., & Supartika, N. (2016). Factors affecting profitability of small medium enterprises (SMEs) firm listed in Indonesia Stock Exchange. Journal of Economics, Business and Management, 4(2), 132-137.
  38. Matei, A.-C., & Onofrei, M. (2021). Financial Management Practices for Farm Profitability.
  39. Mazzarol?, T., Reboud, S., & Clark, D. (2015). The financial management practices of small to medium enterprises. Paper presented at the 28th Annual SEAANZ Conference Proceedings 2015.
  40. Mbaaya, L. (2013). Financial performance of football clubs in Kenyan Premier League. Unpublished, 4.
  41. Mbawuni, J., Mbawuni, M. H., & Nimako, S. G. (2016). The impact of working capital management on profitability of petroleum retail firms: Empirical evidence from Ghana. International Journal of economics and Finance, 8(6), 49.
  42. Mbroh, J. K. (2012). Cash management practices of small business owners in the Cape Coast Metropolitan Area of Ghana. Asian economic and financial review, 2(1), 40-58.
  43. Melgarejo, M., Rodríguez, C., & Torres, J. (2022). Effects of the adoption of management control practices on profitability: evidence from Latin America. Spanish Journal of Finance and Accounting/Revista Española de Financiación y Contabilidad, 51(1), 1-20.
  44. Miji?, K., Nuševa, D., & Jakši?, D. (2018). The determinants of SMEs profitability in the wholesale and retail sector in Serbia. Teme, 097-111.
  45. Mohammed, K. A., & Suleiman, A. (2022). The effect of financial management practices on the performance of micro and small enterprises in Keffi, Nasarawa State, Nigeria. Direct Research Journal of Management and Strategic Studies, 3(3), 37-48.
  46. Muguchia, M. M. (2018). The Effect Of Financial Management Practices On The Financial Performance Of The Companies Listed At Nairobi Securities Exchange.
  47. Muneer, S., Ahmad, R. A., & Ali, A. (2017). Impact of financial management practices on SMEs profitability with moderating role of agency cost. Information Management and Business Review, 9(1), 23-30.
  48. Musah, A. (2017). Benefits and challenges of bookkeeping and accounting practices of SMEs and its effect on growth and performance in Ghana. Journal of Accounting, Business and Management (JABM), 24(2), 16-36.
  49. Musah, A., Gakpetor, E. D., & Pomaa, P. (2018). Financial management practices, firm growth and profitability of small and medium scale enterprises (SMEs). Information Management and Business Review, 10(3), 25-37.
  50. Mushaho, K. N., Mbabazize, M., & Shukla, J. (2015). The Effect of Capital Budgeting, Investment Decision On Organizational Performance In Rwanda. A Case study of Bahresa Grain Milling Rwanda Ltd. International Journal of Small Business and Entrepreneurship Research, 3(5), 100-132.
  51. Muthama, K. M., & Warui, F. (2021). FINANCIAL MANAGEMENT PRACTICES AND PERFORMANCE OF DEVOLVED SUB-COUNTY TREASURIES IN MAKUENI COUNTY, KENYA. Kenyatta University.
  52. Ndayanale, E. (2013). Namibia crawls to profitability. Master’s thesis. University of Namibia, Windhoek, Namibia.
  53. Nuriyah, A., Endri, D., Yasid, M. (2018). Micro, small-financial financing and its implications on the profitability of Sharia banks. DeReMa (Development Research of Management): Journal of Management, 13(2). 175–197.
  54. Nwonye, N. G., & Ugwuegbe, S. U. (2019). Testing the validity of free cash flow hypothesis: Evidence from Nigeria. International Journal of Financial, Accounting, and Management, 1(3), 155-165.
  55. Nyambane, D. O., & Ouma, B. O. (2017). Cash Management and Profitability of cement Industries in Kenya.
  56. Nzitunga, J. B. (2019). Impact of Working Capital Management Practices on Profitability in State-Owned Enterprises (SOEs). Management, 9(2), 37-47.
  57. OECD. (2017). Enhancing The Contributions of SMEs in A Global and Digitalised Economy. Paris: Meeting of the OECD Council.
  58. Oladipupo, A., & Okafor, C. (2013). Relative contribution of working capital management to corporate profitability and dividend payout ratio: Evidence from Nigeria. International Journal of Business and Finance Research, 3(2), 11-20.
  59. Olayinka, A. A. (2022). Financial statement analysis as a tool for investment decisions and assessment of companies’ performance. International Journal of Financial, Accounting, and Management, 4(1), 49-66.
  60. Onwumere, J., Ibe, I. G., & Ugbam, O. (2012). The impact of working capital management on profitability of Nigerian firms: A preliminary investigation. European Journal of Business and Management, 4(15), 192-201.
  61. Oranefo, P., & Egbunike, C. (2022). Debt Financing and Firm Valuation of Quoted Non-Financial Firms in Nigeria Stock Exchange. International Journal of Financial, Accounting, and Management, 4(2), 199-218.
  62. Pais, M. A., & Gama, P. M. (2015). Working capital management and SMEs profitability: Portuguese evidence. International Journal of Managerial Finance.
  63. Perényi, Á., & Yukhanaev, A. (2016). Testing relationships between firm size and perceptions of growth and profitability: An investigation into the practices of Australian ICT SMEs. Journal of Management & Organization, 22(5), 680-701.
  64. Popa, A.-E., & Ciobanu, R. (2014). The financial factors that influence the profitability of SMEs. International Journal of Academic Research in Economics and Management Sciences, 3(4), 177.
  65. Prijadi, R., & Desiana, P. M. (2017). Factors Affecting the Profitability and Growth of Small & Medium Enterprises (SMEs) in Indonesia. International Journal of Economics and Management (IJEM), 35 – 44.
  66. Richard, K. A., Dadson, A.-V., & Peter, L. A. (2013). Working capital management and profitability: Evidence from Ghanaian listed manufacturing firms. Journal of economics and international finance, 5(9), 373-379.
  67. Sarkar, C. R., & Sarkar, A. (2013). Impact of Working Capital Management on Corporate Performance: An Empirical Analysis of Selected Public Sector Oil & Gas Companies in India. International Journal of Financial Management, 3(2).
  68. Saunders, M. N. K., Lewis, P., & Thornhill, A. (2015). Research Methods for Business Students
  69. Shahnia, C., Purnamasari, E., Hakim, L., & Endri, E. (2020). Determinant of profitability: Evidence from trading, service and investment companies in Indonesia. Accounting, 6(5), 787-794.
  70. Siaw, F. (2014). Effect of demand side factors on access to external finance by micro, small and medium manufacturing enterprises in Kumasi metropolis, Ghana. Unpublished Phd Thesis, School of Business, Kenyata University, Kenya.
  71. Stoudt, B. G. (2014). Quantitative methods. In: Coghlan, D. & Brydon-Millers, M (eds). The stage encyclopaedia of Action Research. London: Sage Pub.Inc 1-8
  72. Syafri, M. (2012). Factors affecting bank profitability in Indonesia. Paper presented at the The 2012 International Conference on Business and Management.
  73. Tauringana, V., & Afrifa, G. A. (2013). The relative importance of working capital management and its components to SMEs' profitability. Journal of Small Business and Enterprise Development.
  74. Turyahebwa, A., Arthur, S., & Derick, S. (2013). Financial management practices and business performance of small and medium enterprises in western Uganda. African journal of business management, 7(38), 3875-3885.
  75. Turyahebwa, A., Sunday, A., Aluonzi, E., Yahaya, B., & Sumil, N. (2013). Business efficiency in Small and Medium Enterprises (SMEs) in selected districts in western Uganda.
  76. Uwuigbe, U., Jafaru, J., & Ajayi, A. (2012). Dividend policy and firm performance: A study of listed firms in Nigeria. Accounting and management information systems, 11(3), 442-454.
  77. Vijayakumar, A. (2011). Management of corporate liquidity and profitability: an empirical study. International Journals of Marketing and Technology, 1(6), 156-175.
  78. Warrens, M. J. (2014). On Cronbach’s alpha as the mean of all possible-split alphas. Advances in Statistics.
  79. Wignaraja, G., & O’Neil, S. (1999). A Study of Small Firm Exports, Policies and Support Institutions in Mauritius. Export and Industrial Development Division.
  80. Yamane, T. (1967). An introductory analysis of Statistics: New York: Harper and Row.
  81. Yensu, J., Yiadom, E. K., & Awatey, S. (2016). Financial Management Practices and Profitability of Business Enterprises in Obuasi Municipality, Ghana. Financial Management, 7(16).
  82. Yohanes, D., Debela, K., & Shibru, W. (2018). Effect of financial management practices on profitability of small-scale enterprise: Case Study Hawassa City Administration, Ethiopia. IOSR Journal of Business and Management, 20(6), 39-45.
  83. Yunis, M., Tarhini, A., & Kassar, A. (2018). The role of ICT and innovation in enhancing organizational performance: The catalysing effect of corporate entrepreneurship. Journal of Business Research, 88, 344-356.