Cash Management Techniques Adopted By Small And Medium Level Enterprises In Eldoret Town, Kenya

Abstract

The purpose of this paper was to examine the cash management techniques adopted by small and medium level enterprises in Eldoret town. The study was carried out in 17 selected SMEs all capturing 108 personnel distributed among the said SMEs equitably. The researcher sampled 52 respondents through simple random sampling and stratified sampling to help arrive at better results and minimize research cost. Data from primary sources were then analyzed using both descriptive and inferential statistical techniques. The study concluded that cash management is a working capital management component that contributes to a great extend on survival or failure of SMEs in Kenya. Among the cash management techniques commonly used are speeding cash collection and delayed payment of creditors and they did not have a direct significance with SME performance. However optimum cash held significantly, and positively influenced SMEs performance, SMEs used cheques, cash receipt, and petty cash to control cash movement and finally non financial measures of performance did not have a significant relationship with SME performance.

Key Words: Cash Management, Techniques, Small and Medium Entreprises