Unlocking cash management potentials of small stall market vendors: Empirical evidence from Uganda

This paper examines the role of financial literacy and cash management in improving financial performance of small stall market vendors. A cross-sectional survey was employed to study four main markets in Nakawa division... [ view full abstract ]

This paper examines the role of financial literacy and cash management in improving financial performance of small stall market vendors. A cross-sectional survey was employed to study four main markets in Nakawa division located in eastern region of Kampala. Descriptive statistics, zero order correlation, and hierarchical regression analyses were performed using SPSS v21. The results show that financial literacy is not a significant predictor of financial performance. On the other hand, the results show that keeping appropriate financial records, use of well-designed budgets,bank accounts and ability to invest surplus cash are associated with better financial performance. The study employed a single research methodological approach, future research should be undertaken using a mixed approach to corroborate the current findings. This study was cross-sectional, a longitudinal approach should be considered. Limited literature on factors explaining financial performance among small stall market vendors deprived the opportunity to cross-validate the present findings.