CASH MANAGEMENT AND FINANCIAL PERFORMANCE AMONG SELECTED MICRO AND SMALL-SIZE ENTERPRISES IN BABAK DISTRICT

Abstract

This research study entitled Cash Management and Financial Performance Among Selected Micro and Small Size Enterprises in Babak District was conducted to determine the relationship between cash management and financial performance among the selected micro and small size enterprises hardware stores in Babak district. A descriptive correlational research design will be used in this study. This research study was conducted on the 280 selected MSEs in Babak District, IGaCoS, with the help of the researcher-adapted and modified survey questionnaire. Data gathered was interpreted using the statistical treatment of frequency and percentage, mean, and Pearson moment correlation. The study reveals that in the level of cash management, the highest mean score was 4.24 in cash control, and the lowest mean score was 4.22 in cash collection. At the same time, the level of Financial performance, with an overall mean of 4.28 with a standard deviation of 0.27, is described as very high. The study's result showed that a significant relationship exists between cash management and financial performance in a cash budget, cash planning, cash collection, cash control under cash management, as well as profitability and liquidity under the financial performance.