Analysis of Impacts of Working Capital Management Practices on Financial Performance of Small and Medium Enterprises (Juakali) in Mandera County, Kenya

Abstract

The main purpose of this study was to analyzing working capital management practices on the performance of Small Medium Enterprises (Juakali) and develop instruments that may be used to assess and improve the performance in a business environment to enhance sustainable growth. The study was guided by the following four research objectives: to analyze the cash management practices, to examine the payables management practices, to assess the receivables management practices and to investigate the inventory management practices on the performance of small and medium enterprises in Mandera County. The research was carried out through a descriptive survey research design. The target population was six hundred (600) SMEs from the different Juakali sectors. The study revealed that the key performance indicator utilized by SMEs in Mandera County was customer satisfaction. The outcomes showed that in Mandera County SMEs performance was generally not good. The study concludes that cash management practices adopted by SMEs affected their performance and recommends better cash management ought to be adopted by SMEs to enhance their performance in Mandera County Kenya.