ENTREPRENEURIAL MONEY MANAGEMENT PRACTICES AND COMPETITIVE OUTCOMES OF SMALL AND MEDIUM ENTERPRISES
DOI:
https://doi.org/10.51594/ijmer.v3i2.210Abstract
This study aimed at determining the effect of entrepreneurial money management practices on competitive outcomes of small and medium enterprises. The specific objectives of the study were to; assess the entrepreneurial money management practices of small and medium enterprises, determine the competitive outcomes of small and medium enterprises and to determine the relationship between entrepreneurial money management practices and competitive outcomes of small and medium enterprises. The study used both descriptive, cross-sectional and correlation research designs. The target population was 324 SMEs trading in Trans Nzoia county out of which 179 were sampled to participate in this study. The sampling method used was stratified and simple random sampling. The research instruments reliability test had a Cronbach alpha value of 0.825 which was above the threshold. The study findings indicated that entrepreneurial money management practices among SMEs was moderately embraced affecting their competitive outcomes. The study results also indicated that competitive outcomes of SMEs were dismal affecting their graduation into large enterprises. It was also found that there existed a positive significant relationship between entrepreneurial money management practices and competitive outcomes of SMEs. The study concluded that for SMEs to realize their competitive outcomes of increasing their respective product portfolio and increased revenue, it’s imperative that they apply entrepreneurial money management practices of prioritized financing, budgeting and adequate working capital to graduate SMEs to large enterprises. The study recommended that SMEs to allocate the realized financial resource prudently to exploit opportunities available to them to remain competitive. The study also recommended that SMEs should prioritize on innovations to differentiate themselves in the overcrowded market by expanding their bundle of product portfolio and also the government to formulate workable SME policies which impart entrepreneurial money management practices to improve SME performance.
Keywords: Entrepreneurial, Money Management Practices, Competitive Outcomes, Small and Medium Enterprises.
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Copyright (c) 2021 Fred Gichana Atandi
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