Impact of cash flow management on the financial performance of micro and small pharmaceutical businesses in Naga City
Abstract
Cash flow management practices significantly influence the financial performance of Micro and Small Enterprises (MSEs). This research investigates the impact of cash flow management on the financial performance of micro and small enterprises (MSEs) in Naga City. It examines the relationship between effective cash flow management practices (operating, financing and investing) and key financial performance indicators (such as Sales generation, disbursement control and collection of receivables) among MSEs in the city. The study aims to determine the extent to which improved cash flow management contributes to enhanced financial performance of the business. Using a descriptive correlational design, the researchers conducted data gathering through surveys and interviews with 30 respondents, 21 Micro Enterprise and 9 Small Enterprise Pharmacies in Naga City which made us come up with our P-H-A-R-M-A R-E-A-D-Y, a combined approach model that highlights business strategies and concept that not only focuses in financial planning context but also with the integration of disaster preparedness.
Downloads
References
American Express. (2024). 10 Best Practices to Manage Small Businesses Cash Flow | americanexpress.com. https://www.americanexpress.com/en-us/business/resources/grow-business/small-business-cash-flow- management/
Annrita, Esther, Nasimiyu. (2024). Cashflow Management Practices and Financial Performance of Small and Medium Business Enterprises in Kenya. African journal of commercial studies, 4(3):252-263. doi: 10.59413/ajocs/v4.i3.7
Asian Center. (2024). Raquiza, Antoinette R., Ph.D. upd.edu.ph. https://ac.upd.edu.ph/index.php/faculty-and- staff/regular-faculty/1692-antoinette-raquiza
Authors Database. (2024). Micro, Small, and Medium Enterprises. pids.gov.ph. http://serp- p.pids.gov.ph/feature/public/index-view?slug=micro-small-and-medium-enterprises
Axel Firer. (2024). Managing Cash Flow: 10 Practical Tips For A Business. Statrys. https://statrys.com/blog/tips-for-managing-cash-flow
Bates, T., & Alvarez, M. (2023). The role of financial literacy in SME cash flow management. Financial Research Institute. Retrieved from https://www.financialresearchinstitute.com
Benjamin Laker. (2023). Communication Is at the Heart of Positive Employee Relationships | Benjamin Laker. MIT Sloan Management Review. https://sloanreview.mit.edu/article/communication-is-at-the-heart-of- positive-employee-relationships/
Charles M. Barr. (2024). The Critical Role of Capitalization for Small Businesses in Today’s Challenging Economy. linkedin.com. https://www.linkedin.com/pulse/critical-role-capitalization-small-businesses- todays-challenging-ykvvc
David Gargaro. (2024). How to Manage Customer Relationships.businessnewsdaily.com. https://www.businessnewsdaily.com/15957-small-business-customer-relationship-management.html
Emmanuel Gyamera. (2024). google.com. https://scholar.google.com/citations?user=zocISeYAAAAJ&hl=en Full Bio. (2020). What Are Operating Activities, and What Are Some Examples? Investopedia. https://www.investopedia.com/terms/o/operating-activities.asp
FULLTEXT01.pdf. (2022). diva-portal.org. https://www.diva- portal.org/smash/get/diva2:1703713/FULLTEXT01.pdf
Hang Pham. (2024). A Guide To Cash Flow Management For Small Enterprises. Innovature BPO. https://innovatureinc.com/a-guide-to-cash-flow-management/
HighRadius. (2023). 10 Best Practices for Faster Accounts Receivable Collection. HighRadius. https://www.highradius.com/resources/Blog/collecting-accounts-receivable/
Inga Schibsted. (2024). The link between effective receivables management and business growth | Chaser. Chaser. https://www.chaserhq.com/blog/the-link-between-effective-receivables-management-and- business-growth-chaser
Jackson Stone. (2024). Everything you should know about borrower-lender relationships. loanpro.io. https://www.loanpro.io/blog/everything-you-should-know-about-borrower-lender-relationships/
Jim Pendergast. (2023). How to Manage Cash Flow for Small Businesses | altLINE. altLINE. https://altline.sobanco.com/cash-flow-management/
John Philip Racaza. (2022). Financial Decision Making-Skills among Managers of Small and Medium Enterprises in Relation to Business Performance. Galaxy Science.
Kelsey Miller. (2021). How to Prepare a Cash Flow Statement | HBS Online. Business Insights Blog. https://online.hbs.edu/blog/post/how-to-prepare-a-cash-flow-statement
Kunwar, Meenakshi., Prof., Shiv, Ranjan. (2024). Financial Management Strategies for Small and Medium Enterprises. International Journal of Research Publication and Reviews, doi: 10.55248/gengpi.5.0324.0702
More on Simon. (2024). Investing in equipment has many benefits for businesses | Business Insights | Bremer Bank. bremer.com. https://www.bremer.com/insights/business/2023-09-27-investing-in-equipment-has-many-benefits-for-businesses
Nasimiyu, A. E. (2024). Cashflow Management Practices and Financial Performance of Small and Medium Business Enterprises in Kenya. African Journal of Commercial Studies. https://doi.org/10.59413/ajocs/v4.i3.7
Órchestra solutions (2024). 10 main problems of SMEs that automation can solve. orchestra.solutions. https://www.orchestra.solutions/post/10-main-problems-of-smes-that-automation-can-solve
Paolo Roffia. (2022). Director ownership and performance of small and medium enterprises: insights from Northeast Italy. Fondazione CUEIM.
Russo, K. (2023). Strategic cash flow management for SMEs. American Express. Retrieved from https://www.americanexpress.com
Salas-Molina, F., Rodríguez-Aguilar, J.A. & Guillen, M. (2023). A multidimensional review of the cash management problem. Financial Innovation 9, 67. Retrieved from https://doi.org/10.1186/s40854-023-00473-7
Scotchman Industries. (2024). Why Financing Equipment Should Still Be Considered With Rising Rates. scotchman.com. https://www.scotchman.com/blog/why-financing-equipment-should-still-be-considered-with-rising-rates
Why It Matters for Your Business. (2024). Basics of Cash Management: GSB Bank. https://mygsb.bank/news/understanding-the-basics-of-cash-management-why-it-matters-for-your-business/
Xero. (2023). Money matters report for US small businesses. Retrieved from https://www.xero.com/money-matters-report
The authors and co-authors warrant that the article is their original work, does not infringe any copyright, and has not been published elsewhere. By submitting the article to GPH-International Journal of Business Management, the authors agree that the journal has the right to retract or remove the article in case of proven ethical misconduct.
