Browsing by Author "Ongoya, Peter Wandabwa"

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    Working Capital Management and Financial Sustainability of Micro and Small Cleaning Enterprises in Kakamega County, Kenya
    (Kenyatta University, 2025-11) Ongoya, Peter Wandabwa
    Financial sustainability of Kenya’s Kakamega County micro and small cleaning businesses, is a pressing issue that has significant implications for local economies and employment. However, many micro and small cleaning businesses report monthly revenues below Kenya Shillings 30,000, which is often insufficient to cover operational costs, let alone reinvest in the business. The profit margins are typically low, averaging around 10-15%, primarily due to high competition and low pricing strategies to attract clients. Therefore, this review purposed to ascertain working capital management effects on Kenya’s Kakamega County micro and small cleaning enterprises in financial sustainability, specifically establishing influences of cash flow management, credit management and inventory management. Theories of resource-based view, Keynesian liquidity preference, Credit Risk and Economic Order Quantity anchored the review. Explanatory research design was adopted with 243 registered cleaning businesses in Kakamega County as analysis units. The unit of observation was 243 owners of these businesses. Random sampling guided respondent selection, with data amassed via a semi-structured questionnaire and preceded by a pilot involving 25 individuals, which constitutes 10% of the sampled population of 243. The assessment of the questionnaire's validity involved three specific types of tests: content, construct and criterion validity tests. This study used Cronbach's Alpha to evaluate questionnaire’s reliability, aiming for a 0.8 coefficient. The study gathered qualitative and quantitative data for a holistic comprehension of the subject. Qualitative data was amassed through open-ended questions and analyzed thematically, while quantitative data came from closed-ended questions. Diagnostic tests of multi-collinearity, heteroscedasticity and normality were performed. Descriptive statistics, including means, standard deviations, and frequencies were conducted in addition to the inferential statistics, which includes correlation and multiple regression analysis. Results were delineated by tables and figures. Ethical considerations were followed and upheld throughout. The study found that that cash flow, accounts receivable, accounts payable and inventory management positively significantly influenced Kenya’s Kakamega County micro and small cleaning enterprises’ financial sustainability. The study concludes that cashflow effective management enables the enterprises to achieve their operational costs without problems and make better decisions concerning their expenditure, investment and opportunities for growth. Proper management of accounts receivables has a direct influence on the enterprise cash flow enabling these enterprises to sustain a sound cash influx which is crucial in cushioning the cost of operations and growth opportunity reinvestment. The management of accounts payable by the enterprises ensures that they strengthen relationships with their customers and service providers eventually minimizing their cost in operations. Proper management of inventories by the enterprises helps in achieving optimum stock levels, reduce the likelihood of overstocking. The study recommends that the cleaning business should implement a strong budget system to have accurate tracking of income and expenses. The cleaning businesses should implement a strong invoicing system that guarantees timely and accurate service billing made to minimize payment delay. The cleaning businesses should automate invoicing systems to improve the accounts payable process efficiency and reduce errors that could arise when doing it manually. The cleaning businesses should use simple inventory management software or mobile applications to offer real-time stock level tracking and assist in making decisions based on data analytics