RELATIONSHIP BETWEEN CASH FLOW CONTROL AND PROFITABILITY IN SELECTED SMES IN JUBA CITY: A CROSS-SECTIONAL STUDY.

Abstract

Background:

This study aims to establish the relationship between cash flow control and profitability in selected SMEs in Juba City.

 Methodology:

The research design for this study used descriptive survey analytical techniques. 

The purpose of using descriptive surveys was to collect detailed information that describes an existing phenomenon. A total of 50 people were chosen and were provided with the questionnaire. 96% of the respondents returned the questionnaire. The majority of respondents do have basic skills in cash management with 77%.

 Results:

The majority 32 of the respondents were male representing 67 percent. 16 of the respondents were female; representing 33 percent. This means the majority who participated are male. The SMEs did not apply affirmative action or equal chances of employment for both male and female employees. 47 of the respondents were majority with 94 percent agreeing that Cash flow statement is a central component of corporate cash flow management. 3 of the respondents, representing 6 percent disagreed and said no.

 Conclusion:

There is a moderately strong relationship between cash flow practices on profitability.

 Recommendation:

A possible solution would be to provide awareness to Small and Medium Enterprises (SME) owners on loan application, property management, cash flow, and knowledge of financial records.

All SMEs are to open bank accounts in the bank.