Edward Katumba Segawa – Uganda Martyrs University

Email: ezsennoga@gmail.com/ esegawa@umu.ac.ug

Abstract: The purpose of this paper was to assess the effect of cash management on the sales performance of small and medium enterprises in Container Village, Kampala District. Specifically, the paper looked at how cash planning, cash collection and cash disbursement affect the sales performance. A cross-sectional field survey design that adopted both qualitative andquantitative approaches to collecting and analyzing data was adopted. One hundred thirty-one licensed Agri-input SMEs were sampled for data collection using a semi-structured questionnaire. Data was collected from operators of these SMEs. Descriptive and inferential statistics were generated and interpreted to meet the study objectives. Findings showed that cashmanagement has a positive and significant effect on the sales performance of SMEs. This implies that the way a SME performs in terms of sales is influenced by the way cash is planned, collected and disbursed within that enterprise. SMEs should make budget estimates with applicable strategies to ably collect and utilize cash in viable ventures on the market; evaluate theweighted cost of capital, brand marketing, benchmarking, use of computerized accounting, and strengthen internal controls in regard to cash to achieve sales performance. This paper contributes to literature in regard to cash management within Agri-input SMEs in Uganda.