Abstract
Small businesses are vital for employment and job creation in South Africa. The implementation of sound cash management practices is essential to ensure the profitability and sustainability of any successful business. The purpose of this paper is to identify the cash management challenges faced by small businesses in a developing community. This research targeted small retail businesses in the Tongaat area in KwaZulu-Natal, South Africa. The research design for this paper was descriptive, quantitative and cross-sectional. The data instrument was a questionnaire. These findings indicate a significant relationship between cash management knowledge and managing cash flow. The findings also indicate a correlation between profitability in the business and implementation of cash management practices as well as a correlation between the challenges of cash management practices and their ability to ensure profitability in their business. This paper recommends that businesses should implement cash management procedures to eliminate cash management difficulties. DOI: 10.5901/mjss.2014.v5n27p11
Highlights
Introduction and Purpose of the StudySouth Africa falls behind other third world countries with regards to promoting the development and sustainability of small businesses
The empirical findings of this study are presented below. These findings indicate the types of cash management practices and challenges faced by the small businesses in the Tongaat area
The research was conducted in the context of low profitability, development and growth of small retail businesses
Summary
South Africa falls behind other third world countries with regards to promoting the development and sustainability of small businesses. Small businesses are vital for employment and job creation. The implementation of sound cash management practices is essential to ensure to profitability and sustainability of any successful business. A large number of businesses fail due to the absence of cash rather than the absence of profits. Patel (2010) indicates that cash flow management is vitally important for the business profitability, future planning and sustainability. The practice of basic concepts of cash flow management will assist businesses to plan for the unforeseen eventualities
Sign-in/Register to view highlights & summary Talk to us
Join us for a 30 min session where you can share your feedback and ask us any queries you have
Schedule a callDisclaimer: All third-party content on this website/platform is and will remain the property of their respective owners and is provided on "as is" basis without any warranties, express or implied. Use of third-party content does not indicate any affiliation, sponsorship with or endorsement by them. Any references to third-party content is to identify the corresponding services and shall be considered fair use under The CopyrightLaw.
