WORKING CAPITAL MANAGEMENT PRACTICES AND PERFORMANCE OF SMALL ENTERPRISES IN KAPSABET TOWN, KENYA
Abstract
Small enterprises account for 75 per cent of the total employment and 30 per cent of the Kenya’s gross domestic product. However two thirds of small enterprises fail within the first few months of operation which may be caused by the failure of understanding working capital management practices. This study sought to examine the effect of working capital management on performance of small enterprises Kapsabet town, Kenya. Correlational research design was adopted .The target population for the study was 712 small scale traders in Kabsabet town from which a sample of 256 respondents were selected using the simple random sampling technique. Data was collected using structured questionnaire and was analyzed both descriptively and inferentially using SPSS 26. Descriptive statistics such as mean and standard deviation were used to summarize responses. The correlation coefficient (r), coefficient of determination (R2) and analysis of variance (ANOVA) were calculated. The analysis showed working capital management practices had statistical significant effect on performance of Small enterprises in Kapsabet Town, Kenya. The study concluded that adoption of working capital management practices that is sound leads to better performance. The study recommended for small organizations in both county and National governments to embrace working capital management practices since it enhances improvement on performance.
Key words; Working Capital Management Practices Financial Managements, Performance
CITATION: Wanjala, J. N., & Miroga, J. (2023). Working capital management practices and performance of small enterprises in Kapsabet Town, Kenya. The Strategic Journal of Business & Change Management, 10 (1), 512 – 522.
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DOI: http://dx.doi.org/10.61426/sjbcm.v10i1.2559
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