Abstract
The purpose of this paper is to ascertain the perceptions of small business owners on the implementation of cash management techniques in their businesses. This paper also highlights the importance of managing cash inflow and outflow in the business and examines the impact on business profitability and sustainability. The study focused on small businesses in the Tongaat area, South Africa. This research was quantitative, descriptive and cross-sectional in nature. The instrument used to extract the relevant data from respondents was a Likert type questionnaire. The findings of this research identified the perceptions of small business cash management techniques. A short course on cash management could be offered by the Durban University of Technology to small business owners and managers to enhance their basic cash management knowledge in the implementation of cash management techniques.
Highlights
The purpose of this paper is to ascertain the perceptions of small business owners on the implementation of cash management techniques in their businesses
This study examined the perceptions of small businesses in the implementation of cash management techniques
The study revealed that cash management knowledge and the implementation of sound practices were essential in determining small business success
Summary
The purpose of this paper is to ascertain the perceptions of small business owners on the implementation of cash management techniques in their businesses. Cash flow management is essential for every business as it would contribute towards increasing profitability, future planning and sustainability (Patel, 2010). The implementation of basic principles of cash flow management would aid in planning for the unforeseen eventualities that most businesses experience. Owners fail to realise that if the physical cash isn’t obtained from those revenues, businesses will have insufficient cash to pay off expenses. Many newly formed small businesses are not sustainable for a lenghty period of time, due to the inability of being profitable for a period (Skills & Expertise Development, 2013). Many newly formed small businesses are not sustainable for a lenghty period of time, due to the inability of being profitable for a period (Skills & Expertise Development, 2013). Wallace (2013) revealed that 40% of small businesses are profitable; 30% break-even; 30% are continually losing money; and 9% have a chance of surviving 10 years
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