Enhancing Financial Sustainability through Effective Cash Management: Insights from Women Owned Businesses in Kisii Township, Kenya
Abstract
This study examines the relationship between cash management practices and the financial sustainability of female-owned enterprises in Kisii Township, Kenya. Utilising a cross-sectional survey research design with a quantitative approach, this study targeted a population of 1,134 officially registered female entrepreneurs operating in Kisii Township. A sample of 114 female entrepreneurs was selected using multistage sampling techniques. Data were gathered via questionnaires featuring closed-ended questions and were analysed using descriptive and inferential statistics. The findings indicate that cash-holding methods, technology use in cash management, and cash pooling practices significantly affect the financial sustainability of women-owned enterprises. Additionally, access to financial resources, financial literacy, digital financial services, the regulatory environment, and financial inclusion programs positively influenced the financial sustainability of these enterprises. The study concludes that effective cash management is vital for the long-term success of women-owned businesses in Kisii Township, Kenya. Recommendations include offering targeted financial education programs, facilitating access to affordable financial services, establishing mentorship initiatives, promoting the adoption of digital tools for financial record-keeping, and supporting the formation of savings and credit cooperatives among female entrepreneurs to enhance their cash management practices and improve financial sustainability
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