analysis of working capital management in small and medium enterprises in uganda: a case study of rubaga division kampala

Description

The study purpose of the study was to analyse the working capital management practices among SMEs in Uganda. The objectives of this study were to assess the cash management practices, analyse receivables management practices and analyse inventory management practices in SMEs in Uganda. Using a simple random sample of 250 respondents including business owners, managers and employees, data was collected using questionnaires on the major study variables. Descriptive statistics on the study variables were obtained using a statistical package SPSS. The findings of the study reveal that most SMEs have designed clear policies, procedures and practices the management and control of cash, receivables and inventory. Most SMEs recorded all their cash transactions, credit sales and all inventory transactions. However, almost all (over 95%) of the SMEs do not use computerised systems in the management of their working capital. Based on the findings of the study, it was recommended that SMEs should adopt the use of computerised systems in the management of their working capital and plan well for their inventory using well known techniques to avoid stock pile ups. Key words. Small and Medium enterprises, working capital management.