Working capital management of kente weavers in the ejisu juaben municipality - Ghana

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The study examines working capital management of Kente weavers in the Ejisu-Juaben Municipality. The study is a descriptive study using primary data from 144 respondents. The study employs the convenience sampling technique in the selection of respondents and administering of questionnaires. Descriptive statistics and the Relative Importance Index (RII) are the analysis techniques the study employs, using the statistical package SPSS. The study makes and discusses several important findings. Key among them is the observation that although most of the Kente weavers have a relatively strong inventory management system, their cash management practices reveal a significant weakness and is generally less satisfactory. Further to this, their management of trade credit is less effective, reflecting in the generally weak liquidity position. Factors such as ineffective cash collection system, unreliable customer-demand forecasts, inaccurate sales, inventory and operations planning, delinquent receivables, inability to transfer transaction data to business analytics, unfavourable supplier contracts, and poor credit management are identified to have contributed significantly to the generally poor working capital management practices by the Kente weavers in the Ejisu-Juaben Municipality. Key recommendations include the need for persons in the Kente weaving industry to be assisted with knowledge on budgeting and budgetary procedure. This is based on the observation that most of the Kente weavers do not have an institutionalized budgetary system. Again, the study recommends the need for an effective cash collection system for the Kente weavers. This was found to be largely lacking among majority of the respondents
A thesis submitted to department of accounting and finance, school of business, Kwame Nkrumah university of science and technology i partial fulfilment of the requirements for the award of the degree of master of business administration, finance