Impact of Cash Management on Profitability in Small Manufacturing Organization

Pandey, Dhruba Lal

doi:10.3126/pravaha.v25i1.31934

Cited by 6 publications

(7 citation statements)

References 0 publications

Supporting

Mentioning

Contrasting

Order By: Relevance

“…The result shows that for one unit increase in the business management, it resulted in an increase by a factor of 2.201 (e 0.789 , p < 0.05) in the odd of being in the higher income group. This finding is in agreement with Pandey (2019) which showed that business management practices among microentrepreneurs have significantly contributed to the business's income. Table 13 shows parallel line test to evaluate the proportional odds assumption, which stated that the slope coefficients in the model is the same across response categories.…”

Section: Ordinal Logistic Regressionsupporting

confidence: 92%

Efficacy of the Amanah Ikhtiar Malaysia Microcredit Scheme in Elevating the Income of the B40 Group

Muda¹,

Lonik²,

Mohamad³

2022

IJARBSS

View full text Add to dashboard Cite

This study aims to investigate income group changes within the B40 and factors contributing to a higher income group, after utilizing microcredit from Amanah Ikhtiar Malaysia (AIM). The study was conducted in the North of Peninsular Malaysia involving the states of Perlis, Kedah and Pulau Pinang. The data was collected from 380 women micro-entrepreneurs who received AIM microcredit. The Wilcoxon signed-rank test was used to analyse the significant differences in the income changes. Meanwhile, ordinal logistic regression was applied to estimate the factors that contribute to the higher income group among the AIM women micro-entrepreneurs. The findings indicate that AIM women micro-entrepreneurs within the B40 subgroups had significantly increased their income, hence, moving them up to the higher income group. The results also indicate that education, amount of loan borrowed, business experience and business management are significant factors that influence the women microentrepreneurs likelihood to be in the higher income group. This study made a profound contribution as it demonstrated clearly the success of microcredit in elevating the income of the B40 group across different income group levels prior to receiving the loan. Therefore, this study suggests that outreach of microcredit programmes should be further extended to the B40 group.

show abstract

Section: Ordinal Logistic Regressionsupporting

confidence: 92%

Efficacy of the Amanah Ikhtiar Malaysia Microcredit Scheme in Elevating the Income of the B40 Group

Muda¹,

Lonik²,

Mohamad³

2022

IJARBSS

View full text Add to dashboard Cite

show abstract

“…Moreover, they often perform bank reconciliation. Pandey (2018) discussed that cash flow should be adequate, otherwise the business will become technically insolvent. Cash management deals with handling cash inflows and cash outflows of the day-to-day business operations which is vital in every transaction in the food industry sector.…”

Section: Descriptive Statisticsmentioning

confidence: 99%

“…Conversely, an analytic study was conducted in Nepal regarding the relationship between cash management and profitability in small and medium manufacturing businesses (Pandey 2018). Using correlation and regression analysis, the study showed a low degree of positive correlation between the above variables, that is, as cash management increased, profitability increased also albeit insignificantly.…”

Section: Introductionmentioning

confidence: 98%

Working Capital Management Practices of Microenterprises in Lipa City as Predictors of Business Sustainability

Mostiero¹

2022

IJRP

View full text Add to dashboard Cite

Working capital management practices (WCMPs) are fundamental to any business operation to maximize operational efficiency, ensure optimum profitability, and achieve business sustainability. However, there was a clear gap in the literature that linked WCMPs to business sustainability with its three dimensions of performance -economic sustainability (ES), social sustainability (SS), and environmental sustainability (EnvS). Thus, this study investigated the working capital management practices (WCMPs) including cash management practices (CMPs), accounts receivable management practices (ARMPs), inventory management practices (IMPs), and accounts payable management practices (APMPs), and their significant effects on ES, SS, and EnvS in 85 selected registered food microenterprises in Lipa City, Batangas. The results revealed that APMPs have a positive and significant effect on ES and SS while IMPs have a positive and significant effect on EnvS. Focusing on food microenterprises, the study also provided evidence that APMPs and IMPs play a profound impact on economic, social, and environmental sustainability. Therefore, this study proposed accounting processes, frameworks, and inventory management tools to optimize APMPs and IMPs as strategies to achieve business sustainability for food microenterprises.

show abstract

“…With this, profitability has a significant effect on the growth of SMEs (Raharja & Kostini, 2019) and lack of enterprise profit appears to be a binding constraint to their growth (Shitaye & Elgammal, 2022). Most Micro, Small and Medium Enterprises (MSMEs) are not profitable and poor utilization of assets, poor cash management practices and difficulty to produce equity returns are the major problems (Mayanja, 2020; Pandey, 2020). MSEs profitability is decreasing as they failed to apply financial statement analysis, made unplanned withdrawals of money for personal use, manage their working capital poorly and faced shortage of finance (Abera et al, 2020).…”

Section: Introductionmentioning

confidence: 99%

Profitability of Agricultural Micro and Small-Scale Enterprise in North Wollo Zone, Amhara Regional State, Ethiopia

Endris

Kassegn

2023

SAGE Open

View full text Add to dashboard Cite

The contribution of micro and small enterprises is limited as the majority are financially constrained and half of them exit from business in 2014/15, Amhara Region. Therefore, this study aimed to analyze the profitability of agricultural micro and small-scale enterprises in North Wollo Zone, Amhara Regional State, Ethiopia. Primary data was collected from 271 sample enterprises. The study employed descriptive and econometrics models for the data analysis. The financial ratio result shows that the return on asset, return on owner equity and net profit margin were 0.1601, 0.2768, and 0.1520 birr, respectively. The result of the probit model estimation shows that six variables, namely enterprise age, manager education level, credit use, input availability, owners’ aspiration, and frequency of extension contact significantly and positively influenced the probability of Micro and Small Enterprises (MSEs) being profitable. The second hurdle model, the truncation model showed that enterprise age, manager education level, record keeping, access to input, and frequency of extension contact significantly affected the extent of agricultural MSEs’ profitability. Therefore, enhancing the knowledge, skill, and aspirations of enterprise owners, improving financial access and outreach, providing financial bookkeeping training and practice, creating reliable integration with input producers, and frequent extension support to enhance the profitability and sustainability of enterprises.

show abstract

Impact of Cash Management on Profitability in Small Manufacturing Organization

Cited by 6 publications

References 0 publications

Efficacy of the Amanah Ikhtiar Malaysia Microcredit Scheme in Elevating the Income of the B40 Group

Efficacy of the Amanah Ikhtiar Malaysia Microcredit Scheme in Elevating the Income of the B40 Group

Working Capital Management Practices of Microenterprises in Lipa City as Predictors of Business Sustainability

Profitability of Agricultural Micro and Small-Scale Enterprise in North Wollo Zone, Amhara Regional State, Ethiopia

Contact Info

Product

Resources

About