ASSESSMENT OF FINANCIAL MANAGEMENT CHALLENGES FACING THE MICRO AND SMALL ENTERPRISES (MSES) IN KENYA: A CASE OF MERCHANDIZING MSES LOCATED IN NAIROBI RIVERROAD AREA
DOI:
https://doi.org/10.47941/jacc.116Keywords:
financial management challenges, micro and small enterprises, trade credit management, inventory management, debtors' management, cash managementAbstract
Purpose: This study was an assessment of the financial management challenges facing MSEs in Kenya in the case of merchandizing MSEs located along River Road.
Methodology: A descriptive survey research design was adopted. The target population was all the 210 MSEs located along river Road in Nairobi. The study used systematic random sampling. All the MSEs were numbered and included in the sampling frame. One MSE out of every five MSE was picked at random thus resulting to a sample size of 42 which was 20% of the population. Data was collected using a questionnaire, analyzed by use of descriptive statistics and findings presented using charts and graphs.
Results: Findings in this study indicated that the financial management challenges facing MSEs were in the area of trade credit management, inventory management, debtors' management and cash management. It was concluded that indeed MSEs were facing a serious challenge in financial management.
Unique contribution to theory, practice and policy: It was recommended in this study that business incubation projects should be set up to impart financial knowledge to MSE owners. It was suggested that a correlation or a regression analysis should be carried out as an area of further study in order to ascertain the influence of financial management training and MSE success/growth. Such a study would inform the formulation of government policy aimed at promoting the growth of the MSE sector
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