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.
Keywords
- Cash Management Search this journal for Cash Management (opens in a new tab)
- Cash Flow Search this journal for Cash Flow (opens in a new tab)
- Cash Search this journal for Cash (opens in a new tab)
- Profitability Search this journal for Profitability (opens in a new tab)
- Sustainability Search this journal for Sustainability (opens in a new tab)
References
- Bobitan, N. & Mioc, A. D. (2011). Using information on the cash flow situation in substantiating entities' decisions. Agricultural Management , 13 (3), 299-306.
- Baggetta & Co. (2012). Cash Flow - The Lifeline in your business. Retrieved from http://businessaccountantsperth.net.au/cash-flow-the-lifeline-in-your-business/
- Fin 24. (2010). 63% of businesses fail. Retrieved from http://www.fin24.com/Entrepreneurs/63-ofsmall-businesses-fail-20101111
- Flynn, R. (2009). Cash flow woes BE GONE! Industrial Management , 51(6), 20-24.
- Inc. (2013). Cash Management : Cash Management Cash management is important for any new or growing business, and here are some tips to aid your company in the collection, concentration, and disbursement of cash. Retrieved from http://www.inc.com/guides/finance/cashmanagement.html
- Janklow, C. (2009). Why businesses fail. Accounting today, 4.
- Kunz, D. A. & Dow Iii, B. L. (2010). Cape chemical: cash and profits. Journal of the International Academy for Case Studies , 16(7), 75-83.
- Mong, D. (2012). Follow the cash: Lessons for Capstone business courses. Journal of business & Economics research , 9(12), 33-44.
- Moore, J., William, P. & Longerneck, J. (2010). Managing Small business: An entrepreneural emphasis (15th ed.). Australia: South-Western/Cengage Learning.
- Nick, S. (2009). Cashflow ignorance is big problem for firms. Domimion Post, 3.
- Nordmeyer, B. (2013). Why is Cash Budgeting important to the Organisation? Retrieved from http://yourbusiness.azcentral.com/cash-flow-the-lifeline-in-your-business/
- Page & Associates Ltd. (2013). Five Principles of Cash Management. Retrieved from http://www.askpage.com/index_
- Patel, U. (2010). Cash Management at Indian oil Corporation Ltd. (Unpublished Master's thesis). DR. D.Y. Patil University.
- Perry, G. (2007). For small businesses cash flow is king. Retrieved from http://www.accountingweb.com/topic/cfo/small-businesses-cash-flow-king
- Radipere, S. & Van Scheer, L. (2005). Investigating whether a lack of marketing and management skills is the main cause of business failure in South Africa: Management. South African Journal of Economic and Management Sciences, 8, 402-411.
- Reuters, T. (2011). The importance of cash management. Retrieved from http://www.reuters.com/article/2009/04/02/businesspropicks-us-findlaw-impoetance-ofcash-managment
- Salazar, A. L. (2012). The impact of financial decisions and strategy on small business competitiveness. Global Journal of business research , 6(2), 93-94.
- Shane, S. (2012). Small Business Cash Flow Problems Still Not Declining. Economic Trends. Retrieved from http://smallbiztrends.com/2010/02/small-business-cash-flow-problems-still-notdeclining.
- Skills & Expertise Development. (2013). 10 Reasons Small Businesses Fail in South Africa. Retrieved from http://www.sedi.co.za/blog/30-10-reasons-small-businesses-fail-in-south-africa
- Small firms: Cashflow is king. (2011). Sunday business post. p.2. Retrieved from http://search.proquest.com/docview/921735329?accountid=10612
- Statistics South Africa. (2002). Development of SMMEs. South Africa: Statistics South Africa. Retrieved from http:// www.statssa.gov.za/Statistical_releases.
- VISA Inc. (2006). Commercial Perspectives: Small Business Cash Management Survey. Retrieved from http://usa.visa.com/download/business/resource_center/cash_management.pdf
- Wallace, D. (2013). Infographic: The most tried and failed small businesses. Retrieved from http://smallbiztrends.com/2013/03/infographic-failed-small-businesses.html
- Zions Business Resource Centre. (2005). How to prepare a cash budget. Retrieved from https://www.zionsbank.com/pdfs/biz_resources_book-5.pdf
Downloads
No downloads have been recorded for this article yet. Figures appear here once readers begin downloading the full text.
How to Cite
Share this article
License
Copyright (c) 2014 Avika Mungal, Hari Lall Garbharran (Author)
This work is licensed under a Creative Commons Attribution 4.0 International License.
Author (s) should affirm that the material has not been published previously. It has not been submitted and it is not under consideration by any other journal. At the same time author (s) need to execute a publication permission agreement to assume the responsibility of the submitted content and any omissions and errors therein. After submission of revised paper in the light of suggestions of the reviewers, the editorial team edits and formats manuscripts to bring uniformity and standardization in published material.
This work will be licensed under Creative Commons Attribution 4.0 International (CC BY 4.0) and under condition of the license, users are free to read, copy, remix, transform, redistribute, download, print, search or link to the full texts of articles and even build upon their work as long as they credit the author for the original work. Moreover, as per journal policy author (s) hold and retain copyrights without any restrictions.
Keywords
- Cash Management Search this journal for Cash Management (opens in a new tab)
- Cash Flow Search this journal for Cash Flow (opens in a new tab)
- Cash Search this journal for Cash (opens in a new tab)
- Profitability Search this journal for Profitability (opens in a new tab)
- Sustainability Search this journal for Sustainability (opens in a new tab)
Section
Published in
Vol. 6 No. 1 (2014)
Commodity Markets, Entrepreneurship & Fiscal Sustainability
View issue contents
Published
Submissions
Have research to publish? Journal of Economics and Behavioral Studies welcomes submissions.
Make a Submission