| dc.description.abstract | The purpose of this study is to examine the influence of Working Capital Management
practices (cash conversion cycle, inventory holding period, account receivable collection
period and accounts payable period) on the profitability of Small and Medium size
Enterprises (SMEs) in Makueni County. The purpose was achieved by conducting a
descriptive survey research design based on the views of managers drawn from a final sample
of 71 SMEs from Wote town. Findings indicate that cash conversion cycle, inventory-holding
period and accounts payable period have significant positive effect on profitability of SMEs.
On the contrary, results indicate that there exists a negative relationship between accounts
receivable period and profitability of SMEs. The results suggest that SMEs in Makueni
should strive to improve cash conversion cycle, inventory holding period, accounts receivable
collection period and accounts payable period to enhance their efficiency. The financial
institutions are called upon to offer more trainings to SMEs on effective working capital
management practices before giving a loan facility. The finding is also in handy to the
government and other policy makers to guide the development of policies geared towards
improvement of SMEs sector since it is a key contributor to the Gross Domestic Product of
the country. Specifically, the government should come up with training programs that can
improve the business management skills of the SMEs owners. | en_US |
