Liquidity management profitability and growth of SMEs in Uganda

The study set out to establish the impact of liquidity management on profitability and growth of small and medium scale enterprises in Uganda. The specific objectives of the study were to assess the status of liquidity management, to assess the status of profitability and to assess the status of growth of SMEs in selected districts of Uganda. The study tested the hypotheses that ¿there is no significant relationship between liquidity management and profitability; and there is no significant relationship between liquidity management and growth of SMEs in selected districts of Ugandä. Study findings revealed the liquidity management in SMEs employed ineffective practices regarding cash, inventory and other easily convertible assets. Findings further revealed that most SMEs are not profitable and highlighted the major problem with return on assets and return on equity in business.