scholarly journals Financial Management Practices and Growth of Small and Medium-Scale Enterprises: The case of Kassena-Nankana West District

2020 ◽  
Vol 7 (2) ◽  
pp. 39
Author(s):  
Godfrey Adda
Keyword(s):  
Financial Management ◽  
Management Practices ◽  
Financial Education ◽  
Multiple Regression Model ◽  
Descriptive Statistics ◽  
Moderate Correlation ◽  
Management Skills ◽  
Business Growth ◽  
Medium Scale ◽  
Poor Management

The promotion of financial management practices and growth of Small and Medium-scale Enterprises (SMEs) can contribute significantly towards the sustained elevation of a nation for a better or more humane life. SMEs play a crucial role in addressing the impediments of poverty, inequality and job creation. Yet, many SMEs face numerous challenges ranging from the lack of capital, poor management skills and the application of best financial management practices.This paper explores SMEs’ financial management skills and practices in relation to their growth. The study used questionnaire to collect data from managers or owners of SMEs. Descriptive statistics was used to present the results of the data. Not only that but also, a multiple regression model was also used to test the correlation between financial management practices of SMEs and business growth. The results indicates a moderate correlation between the financial management practices of the SMEs and the growth of the enterprises. Based on the findings, it is recommended for targeted financial education programmes to help managers and owners of SMEs develop and adopt best financial management practices.

scholarly journals THE INFLUENCE OF SOCIO-DEMOGRAPHIC AND FINANCIAL KNOWLEDGE FACTORS ON FINANCIAL MANAGEMENT PRACTICES OF MALAYSIANS

2017 ◽  
Vol 18 (1) ◽  
Author(s):  
Yiing-Jia Loke
Keyword(s):  
Financial Literacy ◽  
Financial Management ◽  
Management Practices ◽  
Financial Education ◽  
Financial Knowledge ◽  
Insurance Policy ◽  
Management Behaviour ◽  
Income Shock ◽  
The Individual ◽  
Socio Economic Factors

Using the pilot survey data on "Measuring financial literacy" in 2010 from OECD (International Network for Financial Education, INFE), this paper aims to investigate the influence of sociodemographic and financial knowledge factors on four selected financial management practices of Malaysians. The four types of financial management practices are: whether the individual plans a budget, lives within their means, is prepared for income shock and owns an insurance policy. These four financial management practices are used to measure individuals' overall financial management behaviour. The measurement of financial management behaviour is divided into three levels depending on the type of financial management practices carried out by individuals. Ordered probit is used to determine socio-economic factors that are significant in explaining the varying differences in the financial management behaviours among Malaysians. The paper also identifies the financial knowledge gaps and investigates the levels of financial knowledge of Malaysians. While the majority of Malaysians show an average level of financial knowledge and plan their budget, many are financially unprepared for income shock and unexpected circumstances. The findings show that ethnicity, income, gender, regularity of income, education, age and financial knowledge have significant effect on individuals’ financial management behaviour. The findings have implications for regulators, financial educators and consumer groups in their efforts to enhance individuals’ financial management behaviour. Keywords: Emergency Saving; Financial Capability; Financial Knowledge; Living within One's Means; Personal Finance.

Issue of Financial Management Practices among SMMEs: A Case Study of Former Transkei Homelands in Eastern Cape Province South Africa

10.31355/70 ◽  
2020 ◽  
Vol 4 ◽  
pp. 001-007
Keyword(s):  
South Africa ◽  
Financial Management ◽  
Financial Stability ◽  
Management Practices ◽  
Future Research ◽  
First Year ◽  
Eastern Cape Province ◽  
Eastern Cape ◽  
Management Skills

NOTE: THIS ARTICLE WAS PUBLISHED WITH THE INFORMING SCIENCE INSTITUTE. Aim/Purpose...................................................................................................................................................................................................... The goal of this study was to investigate the financial management practices of SMMEs operating in under developed regions as a challenge facing SMMEs operating in underdeveloped regions using former Transkei Homelands in Eastern Cape Province as a case study. Background......................................................................................................................................................................................................... In South Africa, the works of Cameron and Miller (2008) highlights that South Africa is ranked among top countries in the world with high failure rates of SMMEs during the first year of establishment. This calls for continues research works to identify factors that could be impeding the progress of SMMEs in South Africa. According to Jayansankaran, (1999) proper financial management practices are among the key deciding factors when it comes to the survival of SMMEs. Mostly SMMEs in underdeveloped regions are owned and managed by one person, the lack of financial management competence on the side of the SMMEs owners or managers in turn could bring serious consequences to the financial stability and grow of the SMMEs. It is against this background that this study focuses on financial management practices among SMMEs entrepreneurs operating their businesses in former Transkei Homelands where survival of SMMEs are critical for economic development of the region. Methodology....................................................................................................................................................................................................... The researcher in this study uses both quantitative and purposive sampling approaches to design an exploratory study to sample 68 SMMEs owners/managers based in the various towns of the selected region. Contribution........................................................................................................................................................................................................ This research will add to the growing knowledge about identifying factors that may be impeding survival of SMMEs. Findings .............................................................................................................................................................................................................. The major findings of the study revealed that 95.59% of the owners/managers have no financial management/accounting skills as well as 58.82% of the internal system of recording financial transactions are not audited. Recommendations for Practitioners................................................................................................................................................................. In view of the findings it is recommended that agencies charged with looking after SMMEs provide training in the area of financial management skills for the SMMEs owners/managers. Recommendation for Researchers.................................................................................................................................................................... Future studies can include the other four principles of financial management principles highlighted by Armstrong (2001). Impact on Society............................................................................................................................................................................................... The research will assist to highlight to funders of SMMEs, policy makers and business support agencies the need for educating SMMEs entrepreneurs especially those operating their businesses in underdeveloped regions in proper financial management practices in order to curve the problem of cash flow faced by SMMEs which leads to SMMEs failure. Future Research................................................................................................................................................................................................. Exploring the skills of the SMMEs entrepreneurs’ to prepare, understand and interpretation of financial statements are critical in this context.

scholarly journals Assessment of debt counselling services: A case of Gauteng, South Afrca

2017 ◽  
Vol 9 (1) ◽  
pp. 194-208 ◽  
Author(s):  
Kgomotso H. Masilo ◽  
Johan Marx
Keyword(s):  
Financial Management ◽  
Management Education ◽  
Early Stage ◽  
Well Being ◽  
Descriptive Statistics ◽  
Management Skills ◽  
Counselling Services ◽  
High Level

The high level of over-indebtedness in Gauteng is cause for concern. The number of consumers applying for debt counselling as well as the registered debt counsellors is increasing. The study on which this article reports aimed at exploring and describing the role of debt counselling in terms of personal financial well-being of consumers in Gauteng. Fifteen debt counsellors were interviewed and 300 consumers were surveyed. Data was analysed using descriptive statistics. There was no evidence that consumers who received debt counselling improved in their financial standing. It was observed that both debt counsellors and consumers lacked financial management skills. It was concluded that, while debt counselling is important, it does not necessarily improve the financial well-being of consumers. It is recommended that financial management skills should serve as a pre-requisite for debt counselling registration and consumers be introduced to personal financial management education at an early stage of their lives.

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 Money Management Behavior and Issues among Congolese University Students: Requirement for Educational Finance

2020 ◽  
Vol 16 (2) ◽  
pp. 211-222
Author(s):  
Vigoureux Chinyabuuma ◽  
Suprapto Suprapto ◽  
Muhammad Imron Romadhon
Keyword(s):  
Democratic Republic ◽  
Democratic Republic Of Congo ◽  
Financial Education ◽  
Descriptive Statistics ◽  
Money Management ◽  
Management Skills ◽  
Residential Status ◽  
Knowledge And Skills ◽  
Almost All ◽  
Financial Issues

Abstract: This study investigated the factors that influence a number of financial issues students face in the Democratic Republic of Congo. A survey was conducted to collect the data for this study. Respondents were asked to demonstrate which of the ten financial education topics they were keen on taking. Descriptive statistics was utilized to present the data. The results show that loans, residential status, and impulse spending were the causes that brought about the students’ financial issues. By identifying the causes of students’ financial issues, educators may be able offer a course, in which students can learn the money management skills needed to address these issues. The respondents were asked if they would be interested in financial education if offered. Almost all of the students expressed their interest in learning how to manage their money. In conclusion, many of the respondents did not have sufficient knowledge and skills in managing their financial affairs.Keywords: financial issues, loans, residential status, impulse spending, money management Perilaku dan Masalah Pengelolaan Uang di Kalangan Mahasiswa Universitas Kongo: Kebutuhan Keuangan PendidikanAbstrak: Penelitian ini menyelidiki faktor-faktor yang mempengaruhi sejumlah masalah keuangan yang dihadapi siswa di Republik Demokratik Kongo. Sebuah survei dilakukan untuk mengumpulkan data untuk penelitian ini. Responden diminta untuk menunjukkan yang mana dari sepuluh topik pendidikan keuangan yang mereka minati. Statistik deskriptif digunakan untuk menyajikan data. Hasil penelitian menunjukkan bahwa pinjaman, status tempat tinggal, dan pengeluaran impulsif merupakan penyebab yang menimbulkan masalah keuangan siswa. Dengan mengidentifikasi penyebab masalah keuangan siswa, pendidik mungkin dapat menawarkan kursus, agar siswa dapat mempelajari keterampilan pengelolaan uang yang diperlukan untuk mengatasi masalah ini. Para responden ditanya apakah mereka akan tertarik dengan pendidikan keuangan jika ditawarkan. Hampir semua siswa menyatakan minatnya untuk mempelajari cara mengelola uang mereka. Kesimpulannya, banyak responden yang tidak memiliki pengetahuan dan keterampilan yang memadai dalam mengelola urusan keuangannya.Kata Kunci: masalah keuangan, pinjaman, status tempat tinggal, pengeluaran impulsif, pengelolaan uang

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