JOURNAL ARTICLE

Exploring The Impact Of Working Capital Management Practices On Small And Medium Enterprises Profitability In The Windhoek Central Business District.

  • Published In: African Journal of Innovation & Entrepreneurship (AJIE), 2025, v. 4, n. 1. P. 157 1 of 3

  • Database: Africa Studies Source 2 of 3

  • Authored By: Kamotho, Daniel W.; Hameva, Innocentia B. 3 of 3

Abstract

The article investigates the impact of working capital management (WCM) practices on the profitability of small and medium enterprises (SMEs) in Windhoek Central Business District (CBD), Namibia. Using a mixed-methods approach combining surveys and interviews, the study finds that efficient inventory and accounts receivable management significantly enhance profit margins and return on assets (ROA), while accounts payable management shows no significant effect on profitability. Challenges identified include extended receivables collection periods and difficulties in cash flow forecasting due to fluctuating sales. The authors recommend that SME owners adopt advanced inventory and cash flow management techniques, and urge policymakers to support SMEs through financing programs and financial literacy training to improve financial resilience in this emerging market context.

Additional Information

  • Source:African Journal of Innovation & Entrepreneurship (AJIE). 2025/03, Vol. 4, Issue 1, p157
  • Document Type:Article
  • Subject Area:Geography and Cartography
  • Publication Date:2025
  • ISSN:2753-3131
  • DOI:10.31920/2753-314X/2025/v4n1a7
  • Accession Number:184050063
  • Copyright Statement:Copyright of African Journal of Innovation & Entrepreneurship (AJIE) is the property of Adonis & Abbey Publishers Ltd. and its content may not be copied or emailed to multiple sites without the copyright holder's express written permission. Additionally, content may not be used with any artificial intelligence tools or machine learning technologies. However, users may print, download, or email articles for individual use. This abstract may be abridged. No warranty is given about the accuracy of the copy. Users should refer to the original published version of the material for the full abstract. (Copyright applies to all Abstracts.)

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