scholarly journals Financial management practices in successful Small and Medium Enterprises (SMEs)

2015 ◽  
Vol 7 (1) ◽  
pp. 88 ◽  
Author(s):  
Hendrik Petrus Wolmarans ◽  
Quentin Meintjes
Keyword(s):  
South African ◽  
Financial Management ◽  
Management Practices ◽  
Small And Medium Enterprises ◽  
Balance Sheet ◽  
Management Skills ◽  
Body Of Knowledge ◽  
Frequency Of Use ◽  
Medium Enterprises ◽  
Financial Practices

<p>Although the success of small, medium and micro enterprises (SMEs) is extremely important for the South African economy, their failure rate is amongst the highest in the world; some researchers estimate as high as 90 percent. Research has shown that the lack of financial management skills and application of financial management practices are some of the biggest factors contributing to SME failure. However, it is not clear from the literature which of these skills and practices are more important than others. This study aims to fill this gap by determining which financial management skills are relevant for successful SMEs. A survey was done on a sample of owner-managers of successful SMEs who had been asked, firstly, whether they performed different financial management practices and, secondly, how frequently they performed these in their companies. The study concludes that practices regarding working capital as well as profitability are much more relevant than those regarding a balance sheet or strategic finance. Similarly, financial practices related to cash flow and decision making are more relevant than those related to planning or analysing. It may be true, due to the high risk and volatile environment of SMEs, as well as the challenges that are often underestimated, that financial practices which academics regard as important are not always implemented by these companies.  This study contributes to the existing body of knowledge as it determines the relative relevance and frequency of use of financial management practices by successful SMEs.</p><p><strong>KEY WORDS </strong></p><p>Small and medium enterprises, Financial management practices, Successful SMEs, Entrepreneurship education</p>

scholarly journals Examining the influence of supplier integration on supply chain performance in South African small and medium enterprises

2020 ◽  
Vol 12 (1) ◽  
Author(s):  
Jeremiah Madzimure
Keyword(s):  
Supply Chain ◽  
South African ◽  
Quantitative Research ◽  
Management Practices ◽  
Small And Medium Enterprises ◽  
Supply Chain Performance ◽  
Gauteng Province ◽  
Supplier Integration ◽  
Positive Correlations ◽  
Medium Enterprises

Background: As the South African economy continues to grow, the role of small and medium-sized enterprises (SMEs) as a potential source for employment creation and productivity within the country has become widely acknowledged. However, one area in which the SMEs in the country still need to develop is in their implementation of supply chain management practices, particularly their relationships with suppliers, which could result in either the failure or success of any business enterprise. Majority of studies conducted in this area have focussed on large firms, thereby creating a research gap in this area.Aim: The aim of this study was to examine the influence of supplier integration on supply chain performance in South African SMEs.Setting: This study was conducted in Gauteng province of South Africa.Methods: A quantitative research methodology was employed in this study. A convenient sample comprising 283 owners and managers from SMEs drawn from the Gauteng Province was used in the study. The collected data were then analysed using Pearson’s correlation and regression analysis.Results: Positive correlations were found between supplier integration and both the tangible and intangible sub-dimensions of supply chain performance. Supplier integration also predicted both the tangible and intangible sub-dimensions of supply chain performance.Conclusion: These results imply that to improve the performance of their supply chains, it is imperative for SMEs to ensure that linkages with their suppliers are properly aligned for improved coordination, which leads to better relationships and supply of materials. This study contributes to the literature by proposing and testing the influence of supplier integration on supply chain performance.

scholarly journals Covid-19 financial distancing for MSMEs in Kenya

2021 ◽  
Vol 10 (3) ◽  
pp. 357-362
Author(s):  
Nathan Mwenda Mutwiri
Keyword(s):  
Financial Management ◽  
Small And Medium Enterprises ◽  
Management Skills ◽  
Institutional Reforms ◽  
Microsoft Excel ◽  
Decision Usefulness ◽  
Descriptive Research ◽  
The Government ◽  
Medium Enterprises ◽  
Analyze Data

The Micro Small and Medium Enterprises (MSMEs) are important for every nation’s economic development. They provide employment and spur the growth of multiple sectors in the economy.  The Covid-19 pandemic has negatively affected MSMEs' performance. The study seeks to demonstrate why COVID 19 may lead to the terminal quarantining of MSMEs. The study is anchored on decision usefulness and information asymmetry theories. The study adopted a descriptive research methodology and sampled MSMEs within Nairobi City County. The study used SPSS to analyze data in addition to Microsoft excel. The study found that over 70% of MSMEs had their sales decline by over 65% while 95% of them had their sales decline by over 30%. The study found that about 68% of MSMEs lacked financial management skills. The study recommends that with legal and institutional reforms, the government needs to develop a financing framework for MSMEs.  

scholarly journals Impact of Financial Management Practices on SMEs Profitability with Moderating Role of Agency Cost

2017 ◽  
Vol 9 (1) ◽  
pp. 23-30 ◽  
Author(s):  
Saqib Muneer ◽  
Rao Abrar Ahmad ◽  
Azhar Ali
Keyword(s):  
Financial Management ◽  
Structural Equation ◽  
Management Practices ◽  
Small And Medium Enterprises ◽  
Agency Cost ◽  
Partial Least Square ◽  
Least Square ◽  
Primary Data ◽  
Medium Enterprises ◽  
The Impact

The importance of Small and medium enterprises (SMEs) towards economic development and growth is considerable. Some SMEs are facing difficulties to their development due to the lack of financial resources and management experience. The objective of this study is to check the relationships of financial management practices on profitability of small and medium enterprises and also to check the impact of agency cost on this relationship. This study consists of data analysis of two hundred SMEs from Faisalabad Pakistan. The study used primary data predominantly. SPSS 23 is used for descriptive analysis and Structural Equation Model (SEM) through Partial Least Square (PLS) 3 for hypothesis testing. The findings of this study indicate the presence of positive relationship between financial management practices and SMEs profitability but agency cost as a moderator has no effect on this relationship. The study strongly recommends higher adherence to financial management practices. Policy makers, developments partners, owners, and managers of SMEs may use these findings for sustainability of their business in Pakistan.

scholarly journals Microfinance Credit Accessibility and Financial Performance of Small and Medium Enterprises in Machakos County, Kenya

2020 ◽  
Vol 4 (1) ◽  
pp. 71
Author(s):  
Muema Joseph Munguti ◽  
Lucy Wamugo
Keyword(s):  
Financial Performance ◽  
Financial Management ◽  
Management Practices ◽  
Banking Sector ◽  
Small And Medium Enterprises ◽  
Small Population ◽  
Financial Access ◽  
Income Ratio ◽  
Medium Enterprises ◽  
Positive Effect

SMEs in Machakos County have been characterized by poor financial performance which has been linked to financial access. Financial access is one of the keys that drive the development of SME in the country, particularly access to bank financing since banking sector plays a key role in serving this segment. This study specifically sought to determine the influence of collateral security, loan-income ratio and geographical branch penetration on financial performance of SMEs. Study adopted census survey due to small population size. Respondents were supplied with semi-structured questionnaires with aim of getting their views regarding financial accessibility and SME performance. Findings of the study indicated that collateral security, loan-income ratio, and geographical branch penetration has a significant positive effect on financial performance in Machakos County, Kenya. This research recommends that SME’s should improve their core capital, strengthen their financial management practices, foster financial innovation, and literacy within firms.

scholarly journals The importance of record keeping to the growth of small and medium scale enterprises (SMEs) in Zimbabwe

2015 ◽  
Vol 12 (4) ◽  
pp. 744-754 ◽  
Author(s):  
Ongayi Vongai Wadesango
Keyword(s):  
Financial Reporting ◽  
Financial Management ◽  
Survey Design ◽  
Small And Medium Enterprises ◽  
Management Skills ◽  
Social Scientists ◽  
Accounting Systems ◽  
Record Keeping ◽  
Medium Enterprises ◽  
Descriptive Survey

This study sought to investigate the influence quality financial reporting systems have on the performance of small and medium enterprises. Descriptive survey design was employed. The sample size was 100 SMEs, selected using stratified random sampling. Data were collected using a questionnaire and an observation list. Data collected using questionnaire were analyzed using Statistical Package for the Social Scientists (SPSS). The study found an absence of formal accounting systems in many firms due to lack of financial and accounting knowledge among the owner‐managers. It is recommended that financial institutions and policy makers need to focus on educating such owner‐managers with necessary accounting and financial management skills.

scholarly journals Green supply chain management in small and medium enterprises: Further empirical thoughts from South Africa

2018 ◽  
Vol 12 ◽  
Author(s):  
Louis R. Epoh ◽  
Chengedzai Mafini
Keyword(s):  
Supply Chain ◽  
Supply Chain Management ◽  
South African ◽  
Environmental Performance ◽  
Management Practices ◽  
Small And Medium Enterprises ◽  
Green Supply Chain Management ◽  
Green Supply Chain ◽  
Chain Management ◽  
Medium Enterprises

Background: For South African small and medium enterprises (SMEs) to gain and maintain competitive advantages and succeed, they have to change their practices and adapt their strategies to the dynamic environment of today. A better understanding and application of green supply chain management practices by SMEs could enable such enterprises to improve their performance and succeed in their operations.Objectives: This study aimed to analyse the relationship between green supply chain management, environmental performance and supply chain performance in South African SMEs.Method: A conceptual model was proposed and subjected to empirical verification using data collected from SMEs based in Gauteng province. The structural equation modelling procedure was used to test hypotheses in the proposed relationships in SMEs within different industries.Results: The results of the study indicated mixed outcomes. No relationships were found between environmental performance and two green supply chain dimensions, namely green purchasing and eco-design. However, the remaining dimensions of green supply chain management, namely reverse logistics and legislation and regulation, positively and significantly predicted environmental performance. In turn, environmental performance positively and significantly predicted supply chain performance.Conclusion: Integrating green supply chain management practices, especially reverse logistics and adherence to legislation and regulation into the SME business strategy, leads to the improvement of environmental and overall supply chain performance.

scholarly journals THE USE OF FINANCIAL MANAGEMENT PRACTICE BY BATIK PEKALONGAN MSMEs

2020 ◽  
Keyword(s):  
Financial Management ◽  
Management Practices ◽  
Small And Medium Enterprises ◽  
Management Practice ◽  
Qualitative Approach ◽  
Structured Interviews ◽  
Medium Enterprises

Micro, Small, and Medium Enterprises (MSMEs) are recognized worldwide as the main source of dynamism, innovation, and flexibility. This study aims to analyze the financial management practices used by the Pekalongan batik craft SMEs. The method used is descriptive with a qualitative approach. Data were collected by structured interviews with a samples are 30 determined by snowballs sampling. The results show that the owner’s knowledge of financial management is still limited, did not prepared a financial budget regularly, and rarely compare the budget with the actual results. Most owners had check supplies once a week and did not evaluate the feasibility before started to invest. Range for ROA were 2% to 5%, and NPM 10% to 20%. All owners are satisfied with doing the business, and no one to thinks of moving to other businesses in other fields.

Assessment of Financial Management Practices of Small and Medium Enterprises (SMEs) in Nasugbu, Batangas

2021 ◽  
Vol 1 (2) ◽  
pp. 24
Author(s):  
Marvin C. Hernandez ◽  
Corinna S. Balboa ◽  
Rommel C. Cuenca ◽  
Nik Ki Dale G. Quilantang
Keyword(s):  
Financial Management ◽  
Business Performance ◽  
Management Practices ◽  
Small And Medium Enterprises ◽  
Working Capital Management ◽  
Significant Difference ◽  
Main Instrument ◽  
Medium Enterprises ◽  
Descriptive Method ◽  
Gathering Data

The Small and Medium Enterprises have been identified as important contributors to economic development who are facing a range of challenges which work against their progress, one of which is financial management. This study aimed to assess the financial management practices of small and medium enterprises in Nasugbu, Batangas. The researchers used the descriptive method with a questionnaire as the main instrument in gathering data from 34 respondents. Frequency, percentage, and mean were used as statistical tools in the study, and analysis of variance was used to determine the significant differences between variables. The data gathered were tallied, analyzed and interpreted. The results of the study revealed that majority of the respondents implement financial management practices. Financial management practices such as financial planning, investment, and working capital management are highly applied by small and medium enterprises in Nasugbu, Batangas. It was also revealed that there is a significant difference in the application of financial management practices of small and medium enterprises when they are grouped according to business profile. The outcome of this study may be useful for the entrepreneurs to focus on financial management practices in order to enhance their business performance. 

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