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E-ISSN : 2288-2766

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Vol.4 No.3

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The Impact of Financial Management Practices on Growth of Small and Medium Enterprise in MOGADISHU

East Asian Journal of Business Economics / East Asian Journal of Business Economics, (E)2288-2766
2016, v.4 no.3, pp.25-29
https://doi.org/10.20498/eajbe.2016.4.3.25
Isse Abdikadir Mohamud (SIMAD University)
Abdisalan Mohamed (SIMAD University)
Isse, A. M. , & Abdisalan, M. (2016). The Impact of Financial Management Practices on Growth of Small and Medium Enterprise in MOGADISHU. East Asian Journal of Business Economics, 4(3), 25-29, https://doi.org/10.20498/eajbe.2016.4.3.25

Abstract

Small and Medium enterprises (SMEs) make important contributions to economic and social development of the country. The aim of this study was to determine the extent of financial management practices employed by the SME’s and their effect on growth. This study was conducted quantitatively through descriptive research design; the data was collected from sample size of 120 of some SMEs operate in Mogadishu. Used questionnaire as data collection tool, the data analysis was done by using the statistical package SPSS version16, the data analyzed and presented by calculation, determining frequency, percentages, mean and standard deviation. Therefore the researchers found result revealed that extent of financial management is low among small and medium enterprises and also, that the financial management is significantly influence on the on growth of small and medium enterprises in Mogadishu Somalia. Furthermore the findings revealed that the cash management, accounts receivable and inventory management are low among SME. Also that most of the selected SME don not make financial plan to their business, at the end that most of the selected SME don not have formal accounting information system to their business.

keywords
Financial Management Practice, Small and Medium Enterprise, Somalia

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