The Relationship between Trade Credit Management Practices and SME Performance: Evidence from Eldoret Central Business District, Kenya
Journal Title: Scholars Journal of Economics, Business and Management - Year 2017, Vol 4, Issue 1
Abstract
Abstract:An in-depth understanding and implementation of an efficient credit management system reduces the amount of capital tied up with debtors and minimizes bad debts. For SMEs, good credit management system is vital to business cash flow and success and ensures effective business operation. This paper unpacks the relationship between trade credit management practices and the performance of SMEs. The author demonstrates that trade credit management practices are one of the major predictors in the SME performance. Anchoring itself on data gathered from the Central Business District of Eldoret, Kenya, the author shows that many SMEs in Kenya have employed stringent credit policies. Consequently, such trade credit management policies have had a positive impact on SME performance. This is necessary in ensuring sustained performance of SMEs. This paper adds to the growing corpus of literature on SMEs and recommends that SMEs need to encourage stringent trade credit management policies that would oversee maximization of profits. Keywords:Trade Credit Management, Working Capital, SMEs, Profit, Business in Kenya
Authors and Affiliations
Joseph Otieno Oluoch
Keywords
Related Articles
- EP ID EP383271
- DOI -
- Views 60
- Downloads 0
Working Capital Management of Indian Automobile Industry – With Special Reference to Selected Automobile Companies
Abstract:The study has been undertaken to analyse working capital management of nine automobile companies in India for the study period of ten years from 2005-06 to 2014-15. The results of the study shows that Mahindra...
Forensic Accounting, Internal Controls and Fraudulent Practices in Nigeria
Abstract:The core objective of the study is to critically examine the impact of forensic accounting application in monitoring internal controls detection/prevention of financial fraud in Nigeria. The survey design was us...
The Analysis of Indonesia Maize Trade Position and Imported Maize Dependency Level In Domestic Market
Abstract:This paper attempts to analyze local maize performance compare with imported maize and examine some factors influencing imported maize dependency in Indonesia. This research employed the TSI method to measure tr...
Loan Practices: A Comparative Study of Lending Practices of Public and Private Sector Banks
All the banks develop their own loan policy based on guidelines given by RBI. All of them, generally, concentrate on similar issues although the internal provisions sometimes vary from bank to bank. In deepness compariso...
The Impact of Stock Market Development on Foreign Direct Investment in Nigeria: An Application of Autoregressive Distributed Lag Model
Abstract: Stock market development is essential for economic growth and prosperity in developing economies like Nigeria. Foreign Direct net flow plays a vital role in promoting economic growth through boosting the stock...