(MCER Publishing, 2014-12) Mungal, Avika; Garbharran, Hari Lall
Small businesses are vital for employment and job creation in South Africa. The implementation of sound cash management
practices is essential to ensure the profitability and sustainability of any successful business. The purpose of this paper is to
identify the cash management challenges faced by small businesses in a developing community. This research targeted small
retail businesses in the Tongaat area in KwaZulu-Natal, South Africa. The research design for this paper was descriptive,
quantitative and cross-sectional. The data instrument was a questionnaire. These findings indicate a significant relationship
between cash management knowledge and managing cash flow. The findings also indicate a correlation between profitability in
the business and implementation of cash management practices as well as a correlation between the challenges of cash
management practices and their ability to ensure profitability in their business. This paper recommends that businesses should
implement cash management procedures to eliminate cash management difficulties.
