Impact of effective cash management on small scale business survival
Titilayo Adewuyi, Ademola Adeniran
This study was carried out on the effects of cash management in small scale businesses. Literature has existed about cash management as a pre-requisite for better growth of small scale businesses. The study was based on the objectives which includes, examining the factors that led to cash minimization, to explain how firm can obtain maximum cash availability, to highlight the importance of a strong system of internal control in the effective cash management and to minimize the idle cash held by the firm. The study employed descriptive cross-sectional survey adopting stratified sampling technique to select representative samples of 150. Questionnaire was administered to generate primary data that was used for this study. The data obtained were presented in tables while the person correlation test was used to test the relationship between the stated variables with 10% level of significance. The analysis was carried out using statistical package for social sciences (SPSS) version 21. The paper demonstrates that cash management practices have positive and significant effect on Small scale performance. Poor cash management practices constrain business operations. Consequently, the paper recommends that Small scale business should put emphasis on proper cash management practices.