Effect of Revenue Management On Financial Sustainability of Smes in Rwanda

Volume 8, Issue 12, December – 2023 International Journal of Innovative Science and Research Technology
ISSN No:-2456-2165
Effect of Revenue Management on Financial

Sustainability of Smes in Rwanda
(Area of Focus: Small and Medium Enterprises)
1
Marie Rose Mukanyandwi; 2Dr. Claude Rusibana (PhD)
Masters of Business Administration in Accounting and Finance - (MBA AF), at University of Kigali, Rwanda
Abstract:- This study entitled “Effect of revenue and therefore improve their financial sustainability. The
management on financial sustainability of SMEs in study also recommends that the Rwanda Revenue
Rwanda, a case study of SMEs in MUHANGA district. Authority should help SMEs to plan their tax liabilities as
The study was guided by the following specific objectives: this helps to encourage more firms to pay taxes rather
to examine the effect of cash flow forecasting on financial than evade or avoid taxes.
sustainability of SMEs in MUHANGA District, to
determine the effect of liquidity management on financial I. INTRODUCTION
sustainability of SMEs in MUHANGA District, and to
determine effects of revenue control on financial According to Effen and Johnson (2011), revenue
sustainability of SMEs in MUHANGA District. Among management is a must for all businesses worldwide and
32,880 SMEs, the study sampled 100 SMEs as sample cannot be chosen. Small and medium-sized businesses, or
size. The primary data was collected through structured SMEs, are vital to the overall functioning of an economy.
questionnaires, whereas secondary data through reading They play a crucial role in creating jobs and boosting the
and analysis of relevant books, report and journals. The economy, which provides opportunities for businesses to
data collected was edited, coded and fed into SPSS make a significant impact on the public and generate profits.
software version 23 for analysis. Regression analysis was SMEs also act as a catalyst for economic growth and
done to investigate the relationship between the variables development.
under study. The study found out that revenue
management has a contribution on financial Income is a fundamental requirement for every commer
sustainability of SMEs as it can be seen on this regression cial corporation to remain in operation as it allows businesses
equation: Sustainability of SMEs is measured by-3.725- to concentrate on creating items and services that can be trad
0.031Cash Flow Forecasting control+0.017Liquidity ed, grow, and endure in a cutthroat market.
Management-0.008Revenue Control +0.371 Profitability
+0.320 Liquidity Ratio +0.374 Debt Management Ratio. Since revenue is said to be the lifeblood of every
business, revenue management is crucial in any organization.
The findings revealed that the level of sustainability The main objective of revenue management is to generate
of SMEs in Muhanga district in relation to revenue high-quality income for each activity carried out by a
management was very high mean (4.24). The findings commercial firm.
indicated that cash flow forecasting control and liquidity
management is moderate negatively correlated with r= - Accordingly, having too little income is also opulent if
0.05, The cash flow forecasting control and sales growth, businesses are overlooking declines in revenue or possible
liquidity management and revenue control are positively results owing to lost profits, or they are covertly forfeiting
correlated with r=0.02. These findings further indicate their business by not replenishing their inventory since they
that sales growth contributes most towards financial are short on funds (Raheman & Nasr, 2007).
sustainability of SMEs.
For corporate enterprise administrators, the most
The researcher brought out the summary based on important task is revenue management procedures.
the findings by demonstrating the effect of revenue
management on financial sustainability of SMEs. The When a company fails to make the required payments
research findings revealed that Profitability, Liquidity on time, it becomes bankrupt. This is the primary cause of
Ratio and Debt Management Ratio are positively financial failure in small businesses.
associated with financial sustainability of SMEs in
Muhanga district while Cash Flow Forecasting control The prospect of such a recommendation ought to
and Revenue Control are negatively correlated financial motivate companies to manage their finances wisely and
sustainability of SMEs . Based on the results, findings and promptly. Appropriate revenue management is expected to
conclusions on the study, the study recommends that the foster the growth of advantageous and manageability of The
need for SMEs to institute more robust revenue planning development of small groups and the offsetting and
practices that will help reduce their effective tax liabilities settlement of dues depend on sound and practical revenue
IJISRT23DEC1787 www.ijisrt.com 2361

ISSN No:-2456-2165
management techniques. A small business's revenue should A combination of income, spending, and asset
be used to pay off risky debts as it handles a variety of management is commonly thought of as financial
challenging clients and makes sure its products are more sustainability. As per Moore and colleagues (2010), the
desirable and in demand than those of its competitors (Marsh, notion of financial sustainability encompasses many
2009). Revenue management, in accordance with Abioro opportunity criteria, such as obtaining funding at market rate
(2013), is fairly utilized to manage and determine the most and utilizing local resources. Therefore, once a company is
appropriate amount of money needed for company activity able to cover the appropriate revenue prices, revenue self-
and the interest on alluring securities, which is consistent sustainability is reached.
with the concept of the enterprise operating cycle. There is no
question that successful money management helps businesses And in order to build on its success, it is essential to
operate and survive. Money transformation cycle and benefit continuously analyze its financial sustainability management
have been found to be significantly correlated by Shin and in order to keep the business moving forward and achieving
Soonan (2008). After some time, Effen and Johnson (2011) its goals. Organizations' attempts to increase their revenue
investigated the relationship between the money change cycle soundness are typically hampered by the way they respond to
and the characteristics of liquidity, capital, and execution in internal and external events, innovate, and have strong
small and medium-sized businesses. Small and medium-sized leadership. As stated by William (2010) Small and Medium-
enterprises (SMEs) are the driving forces behind national Sized Enterprises (SMEs) are a vital source of innovation,
economic engines in Africa. They are also productive and dynamism, and adaptability in highly developed countries.
efficient job creators and the foundation of large They may also be distinguished as the progenitors of large
organizations. However, from a partner's financial SMEs and efficient task creators in developing nations
perspective, SMEs appear to be more than just suppliers— therefore the gas of national financial technique. Even inside
they are also potential clients (Abor & Quartey, 2010). the advanced commercial economies, it is the SMEs quarter
instead of the multinationals that is engaging more people
Small and medium-sized enterprises (SMEs) account (Abioro, 2013).
for approximately 50% of the GDP, produce more than large
corporations with greater initiating power, and have a direct In line with John (2014), management of revenue is
impact on social issues that are more important to address for very important for the revenue health of all businesses, no
the long-term growth of an economy (Belinda, 2011). matter kind and size. Specifically, this study sought to
establish the impact of revenue management practices on the
Small and medium-sized enterprises (SMEs) account financial sustainability of SMEs.
for approximately 50% of the GDP, produce more than large
corporations with greater initiating power, and have a direct In Rwanda, Rwanda has seen a variety of initiatives to
impact on social issues that are more important to address for support Rwandan SMEs from the government, Development
the long-term growth of an economy (Belinda, 2011). Partners (DPs), financial and non-governmental organization
(NGO) sectors. However, these initiatives have suffered from
John (2014) completed research on how revenue a lack of resources, coordination and capacity. Limited and
management affects the sustainability and profitability of disparate implementation of the majority of these projects
Nigerian manufacturing companies. Evaluation of correlation makes it difficult to adequately assess their success or failure.
and regression was accomplished. The results indicated that The government of Rwanda has put in place PSF-Chamber of
while there was no correlation between revenue conversion Women Entrepreneurs to support women’s initiatives. This
cycle and ROA, there was one between revenue conversion institution helps women entrepreneurs to build competitive,
cycle (RCC) and ROE. As a result, revenue management profitable and sustainable businesses with a mission of
techniques determine whether a commercial enterprise empowering Rwandan women entrepreneurs by facilitating
organization succeeds or fails. In their 2013 study, Velnamby them to access tailor-made business development services for
and Kajananthan examined the revenue situation and competitiveness.
profitability of Sri Lankan telecommunications companies.
They saw profitability as a structured variable and revenue Its goals are to support women by networking and
position as an independent variable. Based on the study's offering advocacy, capacity building, connections to both
descriptive assessment results, it was shown that revenue domestic and foreign markets, and experience sharing. The
function ratios affect profitability. Revenue strength and an Rwanda Private Sector Federation consists of nine chambers,
organization's financial sustainability are typically correlated, one of which being the Chamber of Women Entrepreneurs.
but over time, financial sustainability is insufficient on its The Chamber of Women Entrepreneurs was founded in 2008
own. An organization must expand its entire capabilities. with the goal of promoting women's entrepreneurship at the
national, regional, and worldwide levels via training,
By producing its own income and not relying on inventiveness, and competitiveness. Additionally, there is the
donations from funders, contributors, and well-wishers, an former Centre d'Appui aux Petites et Moyennes Enterprises
organization that is financially sustainable may continue to (CAPMER), a public/private organization tasked with giving
exist in the long run (Salazar, 2012). SMEs technical help, guidance, and training. Nevertheless,
this organization lacked the ability and means to offer the
assistance required to grow the SME sector. Through funding

ISSN No:-2456-2165
arrangements, the financial industry is also assisting The primary data were collected using administered
Rwandan small and medium-sized enterprises. questionnaire and interview which were complimented by
data from documents. There were two types of documents;
A significant amount of the Rwanda Development the primary and secondary. Primary documents are eye-
Bank's (BRD) lending activities include equipment leasing witness accounts written by people who was experienced the
through loan funds for agriculture and other purposes, equity particular event or behavior (Kendall, 1992).
financing, refinancing to microfinance institutions, and direct
financing to SMEs and cooperatives. The primary purpose of Secondary documents were written by those who were
these loans is to finance agricultural production activities, not present on the scene but who received the information by
including marketing and processing, as well as non- reading primary documents (Kendall, 1992). These include
agricultural ones like tourism, information and books, reports and records made by those entities. Under
communication technology, social infrastructure, documentation method as a process of searching secondary
manufacturing, and services. Women, cooperatives, youth, data, the researcher got it mainly from books, work reports
and agro-business are the focus of other loan programs that and journals related to the subject.
are overseen by commercial banks and Micro-finance
Institutions (MFI).  Validity and Reliability Instruments
II. METHODOLOGY  Validity of the Instrument

Expert opinions, particularly those of the study
A. Data Collection Methods and Instruments/ Tools supervisor who possesses extensive experience in this topic,
Data collection is the process of obtaining information were used to measure the validity of this research instrument.
through defined processes in response to the predefined In the pilot research, it was put to the test. Before the
research subject of the study. The researcher employed a questionnaire was brought into the field to gather data, any
mixed technique (qualitative and quantitative) and looked at ambiguity or lack of clarity in the items was made evident.
secondary data for this investigation. The pilot research was conducted at Muhanga District's
female SMEs.
 Primary Data
Primary data are those that have been gathered  Reliability of the Instrument
especially to support the current inquiry. The managers and According to Nassiuma (2000), reliability is the ability
staff of the women-owned small and medium-sized to produce consistent results when practiced measurements
enterprises (SMEs) in Muhanga District provided the primary are conducted for the same problem in indistinguishable
data for this study. Through interviews and questionnaires, situations. Pre-testing improved the reliability. The pilot
the researcher was able to gather this data. study's findings were used to the main research project in
order to evaluate the survey's accuracy, enhance its overall
 Questionnaires quality, and establish its reliability. Ten percent of the
A questionnaire, according to Kakooza (1996), is a tool population underwent pilot testing as part of the pretesting in
that consists of pre-formulated questions to which Bomet County. Furthermore, the dependability of internal
respondents provide responses. You can do this by mail, consistency was determined using Cronbach's Coefficient
verbally, in writing, or in another way. Data was gathered Alpha. Every variable has a Cronbach's Coefficient Alpha of
from the employees of certain SMEs in the Muhanga District more than 0.7, indicating its reliability. Kombo and Tromp
using this tool. The following are the reasons the researcher (2006) state that an alpha value of 0.7 or above denotes poor
used the questionnaire method: it prompted respondents to be internal consistency and dependability.
candid and direct while answering delicate questions, which
enabled the researcher to get crucial data. Analyzing written The calculated Cronbach's Alpha for the first 31 entries
data was less complicated than vocal data. The targeted was 0.883.When this value is higher than 0.7, it indicates that
responders can read and write, therefore it saved time. the scale's items have a higher level of internal consistency
and that the research tool was extremely dependable.
 Secondary Data
Secondary data were obtained from historical record. III. DATA ANALYSIS
The secondary data were collected through wide reading or
and documentary review from text books, internet, Various strategies are used to turn raw data into a
magazines, power point presentations and especially reports meaningful report that can be comprehended. Generally
and financial statements concerning the subject matter of the speaking, standard verification is necessary to obtain high-
study (Kothari, 2004). The current study obtained secondary quality facts that accurately reflect the scenario that is being
data from SMEs and Cooperative Development office in portrayed. Excel and the Statistical Package for the Social
Muhanga District. Sciences (SPSS version 23) will be used in this study to
process and analyze data, which will then inform the
 Documentation findings, analysis, and interpretation that are presented. The
According to Bickhanan, (2004) documentation is the research questions were the main topic of the presentation.
process of searching information from different documents The nature of the problem—particularly its specifics and the
and records in the institutional archive. type of data collected. chooses the kind of statistical method

ISSN No:-2456-2165
that will be applied. Tables and related discussions were used available for a particular product in the mind of that
to display the results. Multiple linear regressions are researcher. Explanatory design enables the researcher to
employed when there are more than one independent explain the relationship between variables.
variable, according to Cooper & Schindler (2009).
Quantifying the impact of several simultaneous variables on It involves collecting and analyzing data conducting
a single dependent variable is another useful use of experiments and using statistical analysis techniques to
regression analysis. According to Faraway, merging analyze the data. It helps to provide a full understanding of a
numerous predictor variables into a single regression specific research question.
equation is the process of doing multiple regression analysis.
Instead of focusing on a single predictor variable, multiple IV. RESEARCH FINDINGS
regression analysis allows us to evaluate the impact of
several predictor factors on the dependent measure. The The data presentation, interpretation, and discussion of
relevance of the independent factors' impact on the dependent the results are included in this section. Tables displaying the
variable was examined using a multiple regression model. In results of the analysis were created using percentages and
light of additional models that have been used to test the mean scores. The profile of study participants who operated
effect of revenue management on sustainability of SMEs in SMEs in the MUHANGA district was provided in the first
Muhanga district, the present study adopted the following section, and the presentation of the other parts followed the
model: goals of the research. This section involved presenting the
research findings in relation to the three main research
Y = β0+β1x1+β2x2+β3x3 objectives: evaluating the factors that SMEs in MUHANGA
district use to plan their revenue; assessing the degree of
Where: sustainability of SMEs in MUHANGA district; and
determining the relationship between revenue planning and
Y = Sustainability of SMEs sustainability of SMEs in MUHANGA district. The main and
{βi; i=1,2,3} = The coefficients representing the various secondary data sources were used to arrive at the
independent variables. conclusions. The owners of SMEs in the MUHANGA district
Β0 = the Y intercept were given a properly constructed questionnaire to complete
{Xi; i=1,2,3} = Values of the various independent in order to obtain the main data. A total of one hundred
(covariates) variables. questionnaires were distributed to SMEs in the MUHANGA
e = the error term which is assumed to be normally area with the intention of gathering their opinions about the
distributed with mean zero and constant variance impact of revenue planning on the sustainability of SMEs in
Y = Sustainability of SMEs the district. Eventually, every questionnaire was returned
X1= Cash flow Forecasting Control fully functional. In order to present the findings of our
X2 = Liquidity management research in a way that the reader can easily comprehend, the
X3= Revenue control data were gathered, edited, coded, and put into SPSS. The
data were analyzed by using frequency tables, percentages,
 Research Design mean and standard deviations to make the presentation and
A research design is a strategy or blueprint that outlines analysis of gathered data. This chapter presents the data
the steps involved in gathering and analyzing the data needed analysis, as well as discussions of results. The secondary
to address the research questions and solve the problem the r data was collected from financial statements of SMEs in
esearcher was focusing on. This research employed MUHANGA district. First, the results are presented using
explanatory research design. The main purpose of this descriptive statistics, correlation and regression analysis.
research design is to gain familiarity in unknown (Akhtar Then, a discussion of findings is carried out.
Inaam, 2016). Another purpose of Explanatory Research is to
increase the researcher's understanding of a particular topic. A. Profile of Respondents
It does not give solid results because of its lack of The researcher sought some personal information about
mathematical power, but it does cause the researcher to the respondents who participated in the study. This data was
decide how and why things happen. Explanatory research important in enabling the researcher to ascertain whether the
design always starts with a theory or hypothesis and after respondents had the capability to provide relevant and
gathering evidences it approves or disapproves a theory. It reliable information that could be beneficial to this study.
always carries with a set of concept that guides the researcher The respondents were required to provide their responses
to look for the facts (Akhtar Inaam, 2016). concerning various questions relating to personal
information. The responses obtained were subjected to
It is actually a type of research design that focuses on Descriptive statistics and the frequency and percentage
explaining the features of your research in a detailed way. obtained. The aspects which are considered in this study are
The researcher begins with a common view and uses research gender, age of respondents, educational attainment and
as a tool that can lead to future studies. It is intended to number of years in doing business. The findings are
provide information where a limited amount of information is presented in Table 1.

ISSN No:-2456-2165
Table 1 Profile of Respondents
Variables Responses Frequency (n) Percent (%)
Gender Female 36 36.0
Male 64 64.0
Education level Primary level 12 12.0
Secondary level 58 58.0
University level 30 30.0
20-30 28 28.0
Age group 31-40 41 41.0
41-50 20 20.0
Above 50 Years 11 11.0
Working Experience q 36 36.0
Between 5 and 8 years 49 49.0
Above 8 years 15 15.0
Source: Primary Data, 2023
The demographic characteristics of the respondents The implication is that the age between 31 and 40 is the
according to gender, the research findings showed that the most active working time. It is also evident that during this
majority of study participants were males 64.0% who owned period many people are ready to take risk of venturing on
SMEs in MUHANGA district while 36.0% of respondents different projects for the purpose of generating profits.
were found to be females. These results imply that males
were dominant and involved in SMEs due to the fact that According to the working experience in table 1, the
most households in MUHANGA district are male headed and study findings revealed that out of 100 study participants; the
the males are economically secured compared to women in majority has between 5 and 8 years of working as the
Rwandan situation and other reason is due to women in entrepreneurs by 49.0%, less than 5 years by 36.0% and those
Rwandan still hesitated to take risk in engaging in SMEs by who have working experience of above 8 yeara by 15.0% in
using loan from financial institutions. The same has been doing business in MUHANGA district. This was in
found by other researchers like Goldmark et al. (1998) who agreement with the findings by Braxton (2008) who asserts
conducted his research in Indonesia and found 60% of that respondents with a high membership experience assist in
owners of SMEs were males. providing reliable data on the sought problem since they have
technical experience on the problem being studied.
The table above shows that the majority of the
respondents had secondary level with 58.0%, followed by B. Analysis of the Research Findings
30.0% of respondents who had university level, 12.0% of
respondents had primary level of education. The information  The Effect of Cash flow Forecasting Control on Financial
about educational level indicates that owners of SMEs in Sustainability for SMEs in Muhanga District.
MUHANGA district have sufficient knowledge to lead and The study sought to assess the effects of cash flow
influence their employees in direction of goals of their SMEs forecasting control on financial sustainability for SMEs in
for sustainable development. These results suggest that most MUHANGA district. The respondents were asked to indicate
of the entrepreneurs consulted by the researcher were found to what extent to which owners of SMEs has adopted revenue
to have secondary level of education. These findings revealed planning strategies in order to improve the success of their
the situation in Rwanda where SMEs is viewed as a resort to business in MUHANGA district. The respondents were
those who have enough capital for starting business. required to rate the extent to which their SMEs used different
revenue planning strategies such as cash flow forecasting
According to the age group of respondents, the research control, liquidity management and revenue control. The
findings in Table 1 shows that the majority 41.0% of responses obtained were subjected to Descriptive statistics
respondents was aged between 31 and 40 years, 28.0% of such as percent, meanand standard deviation obtained.
respondents were aged between 20 and 30 years, 20.0% of
respondents were aged between 41 and 50 years and the
remaining 11.0% of respondents were aged above 50 years.

ISSN No:-2456-2165
Table 2 Cash Flow Forecasting Control
SD D U A SA
Cash flow forecasting control Mean δ
n % n % n % n % n %
Cash inflows and outflows helps businesses
0 0.0 17 17.0 0 0.0 46 46.0 37 37.0 4.03 1.029
understand and plan for their cash need
Account receivable is essential to maintain
0 0.0 13 13.0 0 0.0 44 44.0 43 43.0 4.17 0.965
cash flow stability
Cash flow forecasting helps for identify
0 0.0 12 12.0 0 0.0 48 48.0 40 40.0 4.16 0.929
financial gaps and planning.
Cash flow help to show a potential firm
0 0.0 19 19.0 4 4.0 54 54.0 23 23.0 3.81 1.002
accurate forecasting.
Business should forecast and control their
0 0.0 20 20.0 0 0.0 42 42.0 38 38.0 3.98 1.092
fixed and variable cost
Weighted Average/ Overall Mean 4.03 1.003
 Note: N=100, SD=Strongly Disagree, D=Disagree, deviation of 0.929, this result indicated that there is enough
U=Uncertain, A=Agree SA=Strongly Agree, δ=Standard evidence that cash flow forecasting helps for identify
Deviation. financial gaps and planning.
According to the table 2, showing the cash flow On the other hand, the research findings revealed that
forecasting control, the majority of respondents reported that majority of respondents agreed by 54%, strongly agreed by
they agreed by 46%, strongly agreed by 37% and disagreed 23%, and disagreed by 19% that Cash flow help to show a
by 17% that cash inflows and outflows helps businesses potential firm accurate forecasting with mean score of 3.81
understand and plan for their cash need with mean score of and standard deviation of 1.002, this result indicated that
4.03 and standard deviation of 1.029. This implies that there there is not enough evidence that Cash flow help to show a
is enough evidence that Cash inflows and outflows helps potential firm accurate forecasting. The findings revealed
businesses understand and plan for their cash need by as we that majority of respondents agreed by 42%, strongly agreed
are looking at the same value of the overall mean and the by 38% and disagreed by 20% that Business should forecast
mean score for this item which is equal to 4.03 in table 2. and control their fixed and variable cost with mean score of
3.98 and standard deviation of 1.092, this result indicated that
Results in table 2, also revealed that many respondents there is not enough evidence that business should forecast
reported that they agreed by 44%, strongly agreed by 43% and control their fixed and variable cost, this is from the
and disagreed by 13% that account receivable is essential to comparison between the overall mean of 4.03 and mean score
maintain cash flow stability with mean score of 4.17 and for this statement of 3.98.
standard deviation of 0.965, this implies that there is enough
evidence that account receivable is essential to maintain cash  The Effect of Liquidity Management on Financial
flow stability by comparing the overall mean (4.03) and the Sustainability for SMEs in Muhanga District
mean score for this item (4.17). The study sought to assess the effects of liquidity
management on financial sustainability for SMEs in
The research findings showed that majority of MUHANGA district. The following notes were used to
respondents agreed by 48%, strongly greed by 40% and identify the modalities of Responses: SD=Strongly Disagree,
disagreed by 12% that cash flow forecasting helps for D=Disagree, U=Uncertain, A=Agree SA=Strongly Agree.
identify financial gaps and planning with 4.16 and standard
Table 3 Liquidity Management on Financial Sustainability for SMEs

SD D U A SA
Liquidity Management Mean δ
N % n % n % n % n %
Cash flow forecasting help to estimate future 0.0 0.0
cash inflow and outflow to plan for any 0 15 15.0 0 49 49.0 36 36.0 4.06 0.983
potential shortfalls
Working capital management helps to 0.0 0.0
managing current assets and current liabilities 0 14 14.0 0 46 46.0 40 40.0 4.12 0.977
such as inventory, and account payable
Cash flow hedging help to protect against 0.0 0.0
potential losses caused by fluctuation in 0 17 17.0 0 30 30.0 53 53.0 4.19 1.089
interest rate
Cash reserves maintain cushion of cash reserve 0.0
0 7 7.0 0 0.0 32 32.0 61 61.0 4.47 0.822
to cover any unexpected

ISSN No:-2456-2165
Cash conversion cycle helps to minimize the 0.0
time it takes to convert inventory into sales, 0 8 8.0 0 0.0 38 38.0 54 54.0 4.38 0.85
collect receivables and pay liabilities
According to the table 3, the showing the liquidity agreed by 38% and disagreed by 8% that Cash conversion
management of MSEs in Muhanga district, many respondents cycle helps to minimize the time it takes to convert inventory
responded that they agreed by 49%, strongly agreed by 36%, into sales, collect receivables and pay liabilities with a mean
and disagreed by 15% that Cash flow forecasting help to score of 4.38 and standard deviation of 0.850.
estimate future cash inflow and outflow to plan for any
potential shortfalls with mean score of 4.06 and standard Considering the overall mean and standard (Mean=4.24
deviation of (δ =0.983). The respondents reported that they and δ=0.943) with comparison of mean score and standard
agreed by 46%, strongly agreed by 40% and disagreed by deviation for each item in table 3, there are enough evidences
14% that Working capital management helps to managing to say that Cash reserves maintain cushion of cash reserve to
current assets and current liabilities such as inventory, and cover any unexpected issue and Cash conversion cycle helps
account payable with mean score of 4.12 and standard to minimize the time it takes to convert inventory into sales,
deviation of 0.977. collect receivables and pay liabilities.
The research findings showed that many respondents  The Effect of Revenue Control on Financial Sustainability
reported that they strongly agreed by 53%, agreed by 30% for SMEs in Muhanga District
and disagreed by 17% that Cash flow hedging help to protect This section aims at examining the perceptions of
against potential losses caused by fluctuation in interest rate respondents on the effects of revenue control on financial
with mean score of 4.19 and standard deviation of 1.089. sustainability for SMEs in Muhanga district.
The study findings revealed that majority of The study participants were asked to indicate to what
respondents reported that they strongly agreed by 61%, extent to which owners of SMEs has perceived revenue
agreed by 30% and disagreed by 17% that Cash reserves control on financial sustainability for small and medium
maintain cushion of cash reserve to cover any unexpected enterprise in order to improve the success of their business in
with mean score of 4.47 and standard deviation of 0.822. MUHANGA district.
The respondents responded that they strongly agreed by 54%,
Table 4 Revenue Control on Financial Sustainability

Revenue control SD D U A SA Mean δ
n % n % n % n % n %
Sales and Billing helps insure accurate 0 0.0 10 10.0 0 0.0 46 46.0 44 44.0 4.24 0.889
and timely
Internal control help helps to minimize 0 0.0 14 14.0 0 0.0 42 42.0 44 44.0 4.16 0.992
the risk of revenue
Monitoring and analysis of revenue 0 0.0 16 16.0 0 0.0 50 50.0 34 34.0 4.02 0.995
provide insight into revenue
performance
Revenue control involves to maximize 0 0.0 13 13.0 0 0.0 52 52.0 35 35.0 4.09 0.933
revenue potential with market demand
and competition
Revenue control helps businesses 0 0.0 10 10.0 0 0.0 57 57.0 33 33.0 4.13 0.849
maintain financial stability
 Note: N=100, SD=Strongly Disagree, D=Disagree, of respondents also reported that they strongly agreed by
U=Uncertain, A=Agree SA=Strongly Agree, δ=Standard 44%, agreed by 42% and disagreed by 14% that internal
Deviation control help helps to minimize the risk of revenue with mean
score of 4.16 and standard deviation of 0.992.
According to the table 4, showing the revenue control
for MSEs in Muhanga district, the majority of study From table 4, it can be seen that monitoring and
participants responded that they agreed by 46%, strongly analysis of revenue provide insight into revenue
agreed by 44% and disagreed by 10% that Sales and Billing performance, since many respondents reported that they
help insure accurate and timely revenue control on financial agreed by 50%, strongly agreed by 34% and disagreed by
sustainability for SMEs in Muhanga district with a mean 16% with this statement where the mean score and standard
score of 4.24 and standard deviation of 0.889. The majority deviation are 4.02 and 0.995 respectively. The results showed

ISSN No:-2456-2165
that majority of respondents agreed 52%, strongly agreed C. Level of Financial Sustainability of SMEs in Muhanga
35% and disagreed that revenue control involves to maximize District
revenue potential with market demand and competition with The researcher sought to analyze the level of
a mean score of 4.09 and standard deviation of 0.933. sustainability of SMEs in MUHANGA district. The
researcher was interested on assessing the level of
Based on the results in table 4, majority of study sustainability of SMEs in MUHANGA district in term of
participants responded that they agreed 57%, strongly agreed profitability, market share and sales growth. The different
33% and disagreed 10% that revenue control helps statements were development by researcher to asked
businesses maintain financial stability of SMEs in Muhanga respondents whether agreed or disagreed with those
district with mean score of 4.13 and standard deviation of statements regarding to the level of sustainability of SMEs in
0.849. MUHANGA district.
Table 5 Level of Financial Sustainability of SMEs in Muhanga District

Profitability SD D U A SA Mean δ
n % n % n % n % n %
The net income went increasing year by 0 0.0 21 21.0 1 1.0 51 51.0 27 27.0 3.84 1.051
year in the last 3 years
Revenue planning decisions improves 0 0.0 29 29.0 3 3.0 40 40.0 28 28.0 3.67 1.173
performance and maximizes
shareholders’ wealth
Return on equity or shareholders wealth 0 0.0 28 28.0 3 3.0 39 39.0 30 30.0 3.71 1.175
increases when a firm they have various
strategies and actions
Invested in earn higher returns for its 1 1.0 2 27.0 3 3.0 38 38.0 31 31.0 3.71 1.200
shareholders is common goal for many
businesses
A firm’s profit margin is measured by 1 1.0 27 27.0 4 4.0 35 35.0 33 33.0 3.72 1.215
the return on sales
Overall Mean 3.73 1.163
Liquidity Ratio n % n % n % n % n % Mean δ
Revenue planning impacts the firm’s 0 0.0 0 0.0 0 0.0 36 36.0 64 64.0 4.64 0.482
share price performance
Higher profits mean better share price 0 0.0 0 0.0 0 0.0 39 39.0 61 61.0 4.61 0.490
Higher the retained earnings, the 0 0.0 0 0.0 0 0.0 55 55.0 45 45.0 4.45 0.500
potential for the firm to grow is
increased thus stock price also increases
Dividends paid to equity holders 0 0.0 1 1.0 0 0.0 57 57.0 42 42.0 4.4 0.550
reduces a firm’s profits and may have a
negative effect on the firm’s stock
prices
The relationship between retained 0 0.0 3 3.0 0 0.0 65 65.0 32 32.0 4.26 0.613
earnings and share price is mixed
Debt Management Ratio n % n % n % n % n % Mean δ
Sales volume of my SMEs has been 0 0.0 6 6.0 0 0.0 54 54.0 40 40.0 4.28 0.753
increased over the last three years
Number of customers of my business 0 0.0 18 18.0 0 0.0 39 39.0 43 43.0 4.07 1.075
has been increased over the last three
years
Sales growth revenue management 0 0.0 4 4.0 0 0.0 60 60 36 36.0 4.28 0.668
Sales revenue increases its market share 0 0.0 8 8.0 0 0.0 52 52.0 40 40.0 4.24 0.818
Sales growth attracting more customers 0 0.0 7 7.0 0 0.0 44 44.0 49 49.0 4.35 0.809
 Note: N=100, SD=Strongly Disagree, D=Disagree, According to the table 5, on the side of profitability, the
U=Uncertain, A=Agree SA=Strongly Agree, δ=Standard research findings revealed that majority of respondents
Deviation. reported that they agreed by 51.0%, strongly agreed by
27.0%, disagreed by 21.0% and only one percent were
remaining neutral that the net income went increasing year

ISSN No:-2456-2165
by year in the last 3 years with mean score of 3.84 and and strongly agreed by 45.0% with this statement compared
standard deviation of 1.051, which implies that there is to the mean score 4.45 and standard of 0.500.
existing facts that the net income went increasing year by
year in the last 3 years. The research findings also revealed According to the table 5, majority of respondents
that majority of the respondents agreed by 40.0%, disagreed reported that they agreed 57.0% and strongly agreed 42.0%
by 29.0%, strongly disagreed by 28.0%% whereas 3.0% and only 1.0% disagreed that Dividends paid to equity
were remaining neutral that revenue planning decisions holders reduces a firm’s profits and may have a negative
improves performance and maximizes shareholders’ wealth effect on the firm’s stock prices with mean score of 4.40 and
with mean score of 3.67 and standard deviation of 1.173 standard of 0.550. The majority of respondents reported that
which implies that there is strong evidence that revenue they agreed by 65.0% and strong agreed by 32.0% that
planning decisions improves performance and maximizes relationship between retained earnings and share price is
shareholders’ wealth. mixed with a mean score of 4.26 and standard deviation of
0.613.
The study findings revealed that the majority of
respondents 69.0% (39.0% agreed and 30.0% strongly According to the table 5, on the side of Debt
agreed), 28.0% disagreed and only 3% of respondents were Management Ratio, The results showed that the majority of
neutral that return on equity or shareholders wealth increases study participants 54% agreed, and 40% strongly agreed,
when a firm they have various strategies and actions with while only 6% of respondents disagreed that their Sales
mean score of 3.71 and standard deviation of 1.175, which volume of my SMEs has been increased over the last three
implies that 69.0% there is strong evidence that there are years with mean score of 4.28 and standard deviation of
facts that return on equity or shareholders wealth increases 0.753 which implies that there is enough evidence that there
when a firm they have invested in earn higher returns for its are Sales volume of my SMEs has been increased over the
shareholders. last three years. The research findings in table 5, also
revealed that Number of customers of the study
Regarding on the table 5, the research findings revealed participants’ businesses have been increased over the last
that majority of respondents reported that 69.0% agreed three years with a mean score of 4.07 and standard deviation
(38.0% agreed and 31.0% strongly agreed), 27.0% disagreed, of 1.075 which implies that there is heterogeneity response.
3.0% neutral and only 1.0% strongly disagreed that invested
in earn higher returns for its shareholders is common goal for The respondents reported that they agreed by 60%,
many businesses with mean score of 3.71 and standard strongly agreed by 36%, and disagreed that revenue
deviation of 1.200. management with mean score of 4.28 and standard deviation
of 0.668. The study participants responded that they agreed
The results indicated that the majority of study by 52%, strongly agreed by 40%, and disagreed by 8% that
participants reported that they agreed by 68.0% (35.0% sales revenue increases its market share with mean score of
agreed and 33.0% strongly agreed), 27.0% disagreed, 4.24 and standard deviation of 0.818. From the table 5, the
whereas 4.0% remaining neutral and only 1.0% strongly research findings revealed that majority of respondents
agreed that a firm’s profit margin is measured by the return reported that they strongly agreed by 49%, agreed by 44%
on sales with mean score of 3.72 and standard deviation of and only 7% disagreed that Debt Management Ratio
1.215, which implies that that there is strong evidence of attracting more customers with mean score of 4.35 and
existing of fact that firm’s profit margin is measured by the standard deviation of 0.809.
return on sales.
D. Correlation Analysis of Cash Flow Forecasting Control
From the results in table 5, by looking at the liquidity and Sustainability of SMEs in Muhanga District.
ratio, the results indicated that majority of respondents Table 6 shows the relationship between cash flow
responded that they strongly agreed by 64.0% and agreed by forecasting control and sustainability of SMEs in Muhanga
36.0% that revenue planning impacts the firm’s share price district. Pearson correlation was development which is
performance with mean score of 4.64 and standard deviation known as a statistical technique to measure the relationship
of 0.482, which implies that there is strong evidence that between variables. Simply it is said that if the correlation
revenue planning impacts the firm’s share performance. value is positive the relationship between variables is said to
be positive and vice-versa. After that, the following task is to
The research findings in table 5, also indicated that confirm whether the correlation is statistically significant or
majority of respondents responded that they strongly agreed not.
61.0% and agreed 39.0% that Higher profits mean better
share price with mean score of 4.61 and standard deviation of To this, the p-value of 0.05 was used where the
0.490. calculated or tabulated p-value is compared to its value. If the
tabulated p-value is below to the p-value of 0.05, then the
By looking at the level of sustainability of SMEs in relationship is said to be statistically significant and if it
Muhanga district, the research findings showed that higher above the relationship is said to be not statistically
the retained earnings, the potential for the firm to significant. The results were presented and summarized in the
grow is increased thus stock price also increases, as it was table 6 below.
seen in table 5, that majority of respondents agreed by 55.0%

ISSN No:-2456-2165
Table 6 Correlation Analysis of Cash Flow Forecasting Control and Sustainability of SMEs in Muhanga District.
Cash Liquidity Revenue Profitability Liquidity Debt management
Flow management control Ratio Ratio
Pearson
Cash Flow 1 -0.05** -0.12 -0.09 -0.06 0.02**
Correlation
Liquidity Pearson -
1 0.02** 0.02** -0.14 0.05**
management Correlation 0.05**
Pearson
Revenue control -0.12 0.02** 1 0.1 0.07 0.07
Correlation
Pearson
Profitability -0.09 0.02** 0.1 1 -0.06 0.12
Correlation
Pearson
Liquidity Ratio -0.06 -0.14 0.07 -0.06 1 -0.03**
Correlation
Debt management Pearson
0.02** 0.05** 0.07 0.12 -0.03** 1
Ratio Correlation
**Correlation is significant at the 0.05 level (2-tailed)
The Pearson’s r for the correlation between the cash The Pearson’s r for the correlation between the
flow forecasting control and liquidity variables is -0.05. This liquidity management and profitability is 0.02. This means
means that there is a moderate negative correlation between that there is weak positive correlation between the two
the two variables and statistically significance since the Sig variables and statistically significance since the Sig (2-
(2-Tailed) value is equal to p-value (0 .05). The Pearson’s r Tailed) value is less than 0 .05. The Pearson’s r for the
for the correlation between the cash flow forecasting control correlation between the Liquidity Ratio and Debt
and Debt management Ratio variables is 0.02, this means that management Ratio is -0.03. This means that there is weak
there is weak positive correlation between the two variables negative correlation between the two variables and
and statistically significance since the Sig (2-Tailed) value is statistically significance since the Sig (2-Tailed) value is less
less than p-value (0 .05). than 0 .05.
The Pearson correlation r between liquidity  Multiple Linear Regressions between Cash Flow
management and revenue control variables is 0.02. This Forecasting Control and Sustainability of SMEs in
means that there is weak positive correlation between the two Muhanga District.
variables and statistically significance since the Sig (2- The regression coefficients are analysed the
Tailed) value is less than 0.05. The Pearson’s r for the independent and dependent variables and identify both
correlation between the liquidity management and magnitude and the direction of impact. The analyses have
profitability is 0.02. This means that there is weak positive been done by case to case and determine the effect of cash
correlation between the two variables and statistically flow forecasting control on sustainability of SMEs in
significance since the Sig (2-Tailed) value is less than 0 .05. Muhanga district.
The Pearson’s r for the correlation between the  Model Summary

liquidity management and sales growth is 0.05. This means Determination coefficients (R2) were also carried out to
that there is moderate positive correlation between the two determine the strength of the relationship between
variables and statistically significance since the Sig (2- independent and dependent variables as shown in table D.1
Tailed) value is equal to 0 .05. below.
Table 7 Model Summary

Model R R Square Adjusted R Square Std. Error of the Estimate Durbin-Watson
1 .865a .748 .732 .25593 2.135
a. Predictors: (Constant), Debt Management Ratio, Cash Flow forecasting control, Liquidity Ratio, Revenue control, Profitability
b. Dependent Variable: Sustainability of SMEs
R-Squared is a commonly used statistics to evaluate the represented by the coefficient of determination (R 2). Other
model fit. Adjusted R-Square is called the coefficient of factors contribute 25.2% towards sustainability of SMEs.
determination and tells us how sustainability of SMEs was
affected by revenue management such as Revenue Control,  Analysis of Variance
Liquidity Management, and Cash Flow Forecasting control. Analysis of variance is established to show if there is
The coefficient of determination is a number that indicates significance difference between the means of the variable
how well data fit a statistical model. It is a measure of how under study and also to examine the overall significance of
well observed outcomes are replicated by the model. From the model. Overall significance of the model is important in
the analysis, the six indicators of revenue planning strategies establishing whether the model is fit to giving true estimate
contribute 74.8% towards sustainability of SMEs as of the variables.

ISSN No:-2456-2165
Table 8 ANOVA
Model Sum of Squares df Mean Square F Sig.
1 Regression 18.099 6 3.016 46.053 .000b
Residual 6.091 93 .065
Total 24.190 99
a. Dependent Variable: Sustainability of SMEs
b. Predictors: (Constant), Cash Flow forecasting control, Debt Management Ratio, Revenue control , Liquidity Management,
Profitability
The ANOVA results are presented in table 3. As shown for social sciences (SPSS) to compute the measurements of
in the table, the P-value obtained is 0.000 which is less than the multiple regressions for the study. Model relationship
0.05. This implies that the model developed can be relied for with the revenue planning strategies of these variables can be
prediction. At 95% confidence level therefore, the arranged in a function or equation as follow:
relationship between revenue planning and sustainability of
SMEs is statistically significant. Y = β0+β1x1+β2x2+β3x3 + e
 Regression Coefficients Y = Sustainability of SMEs of SMEs, ₀ = Constant, ₁ =

Multiple linear regression analysis is used to determine regression coefficient of variable X₁, ₂ = regression
whether there is an influence of Cash flow forecasting coefficient of variable X₂ ₃ = regression coefficient of
control, Revenue control and Liquidity management to variable X₃,
sustainability of SMEs in MUHANGA district. The ₄ = regression coefficient of variable X₄, 5= regression
regression models were run to test whether the model is coefficient of variable X5,
significant or not. The statistical significance was verified by 6= regression coefficient of variable X6, where X1=Cash
the Coefficient (β), t-statistic and Prob. In additional, Flow Forecasting control,
statistically significant relationship between the dependent X2= Liquidity Management, X3= Revenue Control, X4=
variable (Sustainability of SMEs) and independent variables Profitability, X5=Liquidity Ratio,
(Cash flow forecasting control, Revenue control and X6= Debt Management Ratio and e = error / confounding
Liquidity management) from the model were accepted at 5% variables.
significance level. The analysis applied thestatistical package
Table 9 Regression Coefficients

Unstandardized Coefficients Standardized Coefficients
Model B Std. Error Beta t Sig.
(Constant) -3.725 .582 -6.400 .000
Cash Flow Forecasting control -.031 .041 -.040 -.764 .147
Liquidity Management .017 .053 .017 .323 .542
Revenue Control -.008 .038 -.011 -.214 .631
Profitability .371 .025 .772 14.561 .004
Liquidity Ratio .320 .076 .223 4.205 .003
Debt Management Ratio .374 .073 .270 5.134 .001
a. Dependent Variable: Sustainability of SMEs
From the research findings, the following values were their p-values were below the acceptable threshold of 0.05
obtained: 0=-3.725, 1=-0.031, 2=0.017, 3=-0.008, while Cash Flow Forecasting control, Liquidity management
4=0.371, 5=0.320 and 6=0.374. The regression model can and Revenue Control were negatively associated with
therefore be expressed as follows: sustainability of SMEs in MUHANGA district and not
statistically significance since its P-value was above at 0.05
Y= -3.725 - 0.031X1 + 0.017X2-0.008X3 + 0.371X4 + 0.320X5 (5%) of level of significance.
+ 0.374X6.
From the research findings, positive effect was found on
Therefore, Sustainability of SMEs is measured by- three variables i.e. are Liquidity Management, Profitability,
3.725-0.031Cash Flow Forecasting control+0.017Liquidity Liquidity Ratio, Debt Management Ratio with regression
Management-0.008Revenue Control +0.371 Profitability coefficients of 0.017, 0.371, 0.320 and 0.374 respectively
+0.320 Liquidity Ratio +0.374 Debt Management Ratio. while Cash Flow Forecasting control and Revenue Control
are negatively with regression coefficient of-0.031Cash and
At 5% level of significance three variables which are -0.008.
Profitability, Liquidity Ratio and Debt Management Ratio
were find to be positive and statistically significance since

ISSN No:-2456-2165
These findings suggest that a unit increase in income at 92% that Cash conversion cycle helps to minimize the time
tax ratio, taking all the other variables constant at zero would it takes to convert inventory into sales, collect receivables
result to a 3.725 decrease on sustainability of SMEs in and pay liabilities with a mean score of 4.38 and standard
MUHANGA district. Similarly, a unit change in increase in deviation of 0.850.
Cash Flow Forecasting control would result to a 0.031
decrease in sustainability of SMEs, a unit change in increase  The Relationship between Revenue Management and
in Liquidity Management would result to a 0.017 increase in Financial Sustainability of Women SMEs in Muhanga
sustainability of SMEs, a unit increase in Revenue Control District
would results to 0.008 decreases in sustainability of SMEs, a The 3rd objective of the study determined the
unit increase in Profitability would also result to a0.371 relationship between revenue management and financial
increase in sustainability of SMEs, a unit increase in sustainability of SMEs in Muhanga District.
Liquidity Ratio would result to a 0.320 increase in
sustainability of SMEs, a unit increase in Debt Management From the analysis, the research findings revealed that
Ratio contributes would result to a 0.374 increase in revenue management contribute 74.8% towards financial
sustainability of SMEs. These findings further indicate that sustainability of SMEs as represented by the coefficient of
debt management ratio contributes most towards determination (R 2) while other factors contribute 25.2%
sustainability of SMEs. towards financial sustainability of SMEs in Muhanga district.
V. CONCLUSION AND RECOMMENDATIONS  Conclusion

In conclusion, the researcher brought out the summary
 Introduction based on the findings by demonstrating the effect of revenue
This section presents the study's findings, which looked management on financial sustainability of SMEs in Muhanga
at how revenue management affected SMEs' capacity to district. The research findings revealed that Profitability,
maintain their financial stability. Certain hypotheses and Liquidity Ratio and Debt Management Ratio are positively
aims guided the research. This leads to the inclusion of a associated with financial sustainability of SMEs in Muhanga
summary of the research effort, study results, district while Cash-Flow Fore-casting control and Revenue
recommendations for policy and practice, study limitations, Control are negatively correlated financial sustainability of
and suggestions for future research on data analysis in this SMEs in MUHANGA district.
part.
 Recommendations
 Summary of the Findings Based on the results, findings and conclusions on the
It was discovered from the data that men made up study, the outlines of recommendations were determined. The
64.0% of the respondents. The findings also revealed that study makes a number of recommendations.
58.0% of respondents had completed secondary education,
and 41.0% of respondents were between the ages of 31 and First, the study recommends that the need for SMEs to
40. Additionally, it was discovered that the majority of institute more robust revenue planning practices that will
respondents had five to eight years of experience owning help reduce their effective tax liabilities and therefore
small and medium-sized firms. improve their financial sustainability.
 The Effect of Cash Flow Forecasting Control on The study also recommends that the Rwanda Revenue
Financial Sustainability of SMEs in Muhanga District. Authority should help SMEs to plan their tax liabilities as
First, the study looked at how cash flow forecasting this helps to encourage more firms to pay taxes rather than
control affected the financial sustainability of SMEs in evade or avoid taxes.
Muhanga District. The statistical results showed that a large
number of respondents (83%), with a mean score of 4.03 and This way, the national funds are filled up through more
a standard deviation of 1.029, agreed that understanding and revenue collections as more firms register as taxpayers and
planning for cash needs is facilitated by cash inflows and comply while firms also feel less burdened by the tax
outflows. With a mean score of 4.16 and a standard deviation liabilities.
of 0.929, the research findings revealed that 88% of
respondents agreed that cash flow forecasting helps for The study further recommends that other SMEs that
identifying financial gaps and planning. This suggests that wish to improve their firm values should seek to use the
there is sufficient evidence to support the claim that cash ingredients in this study. These include better revenue
flow forecasting helps for financial gap and planning management that help reduce their tax liabilities, striving to
identification. expand and be large in terms of their asset base. The tax
authorities should address the lack of formal revenue
 The Effect of Liquidity Management on Financial planning as this may be a way of evading taxation in the
Sustainability of Women SMEs in Muhanga District name of tax avoidance. The small scale enterprises should
The second objective of the study examined the effect also be ready to open up to advice on revenue planning to
of liquidity management on financial sustainability for SMEs make savings lather than playing a hide and seek game with
in Muhanga District where the statistical findings tax authorities.
demonstrates that many respondents reported that they agreed

ISSN No:-2456-2165
 Suggestion for Further Researcher [12]. Brigham, E. F., & Houston, J. F. (2007). Fundamental
A replica of this study can be carried out with a wide of financial management, Ohio: South- west division
scope to include other districts and see whether the findings of Thompson Learning Incorporation.
hold true. Future studied should apply different research [13]. Davoudi, S. M. (2013). The Relationship between
instruments like Interview guide and Focus Group working capital management and profitability of listed
Discussions to involve respondents in conferences, which companies in Tehran stock exchange. Business
will generate detailed information. The outcome will Management Dynamics, 6(2), 11-15
demonstrate how revenue management contributes to [14]. Debt, T.H. (2005). Processing cash is biggest
financial sustainability of small and medium enterprises in challenge. Pearson Press, NYC.
Rwanda. [15]. Easterby-smith, M., Thorpe, R., & Jackson, P. R.,
(2008). Management Research. London: Sage
This study was restricted to investigate the influence of Publications Ltd.
revenue management on financial performance of small scale [16]. Effective, C.J., Kimuyu, P., Manos, R., & Murinde, V,
enterprises which it has done successfully. However, there is (2002). How do Small Firms in Developing Countries
need to investigate the extent to which the respondents are Raise Capital?, Evidence from a LargeScale Survey of
aware of the provision in the tax act so as to take advantage Kenyan Micro and Small Scale Enterprises,
of it. The study would also suggest a study on the Economic Research Paper No. 02/6, Centre for
influence of revenue management on financial International, Financial and Economics Research,
performance of medium scale enterprises so as to establish Department of Economics, Loughborough University
if revenue management reflects the level of operation [17]. Flynn, R. (2009). Cash flow woes BE FLOWNE!
Rwanda. Industrial Management, 51(6), 20-24.
[18]. Gallagher, T. (2000). Financial Management Principle
REFERENCES & Practice, 2nd Edition New Jersey: Prentice Hall Inc.
[19]. John, K. M. (2012), “Cash management practices of
[1]. Abioro, M. (2013), The impact of cash management small business owners in the Cape Coast Metropolitan
on the performance of manufacturing companies in Area of Ghana”. Asian Economic and Financial
Nigeria. Journal of Supply Chain Management, 1(3), Review, 2 (1), 40 – 58.
177-192 [20]. John, A.O. (2014). Effect of cash management on
[2]. Abor J. (2010), Issues in SME Development in Ghana profitability of Nigerian Manufacturing firms,
and South Africa, International Research, Journal of International Journal of Market and Technology, (1),
Finance and Economics, 39 (10), 225-250. 60-77.
[3]. Akinbuli, S.F. (2009). Cash management techniques [21]. Klofsten, M. (2010). The business platform:
and application for corporate organization, The Entrepreneurship & management in the early stages of
Nigerian Journal of the Institute of chartered a firm’s development, 3rd Edition. Luxemburg: TII
Accountants, 42(1), 27-33. asbl.data effects on the classification accuracy of
[4]. Aliet, N. (2012). Cash management and profitability probity, ID3 and neural networks. Contemporary
of corporate firms. A case study: MTN Uganda Ltd. Accounting Research, 9(1), 306–328.
(Unpublished Masters of Business Administration [22]. Kombo, D., & Tromp, L. (2008). Research Methods:
Project), Makerere University Nairobi Kenya; Kenyatta University.
[5]. Attom, E.B. (2014). Cash management practices by [23]. Kothari, C. R. (2009). Research Methodology;
micro and small-scale enterprises at Kasoa in the Methods and techniques (2nd Ed.) New Delhi.
Central Region of Ghana. Asian Journal of Business [24]. New Age International Limited Publishers.
and Management Sciences, 3(2), 1-12. [25]. Kytonen, E. (2004). The cash management behavior
[6]. Baumol, W. (1952). The transaction demand for cash: of firms and its structural change in an emerging cash
An inventory theoretic approach. The Quarterly market. Proceedings of the University of Oulu.
Journal of Economics, 6(4), 25-30 [26]. Lizarids, M., & Dimitrios, T. (2006). “Relationship
[7]. Barney, J., (1991) Firm resources and sustained between Working Capital Management and Analysis”,
competitive advantage. Journal of Management, Journal of business and Economics, 18(1), 26-35.
17, 99-120. [27]. Malik, M., Waseem, J. U., and Kifayat, U. (2011).
[8]. Belinda, D.S (2011). Cash management in SMEs, Working capital management and profitability
Journal of Management 2(1), 7-13. analysis of firms of textile industry of Pakistan.
[9]. Berks, J., & Demarzo, P. (2011), corporate finance, Journal of Managerial Sciences, 6(2), 155-165.
2nd Edition. Boston Pearson: Education Inc. [28]. Marsh, C. (2009). Mastering financial management: A
[10]. Berns, M. 2009. The business of sustainability. MIT step-by-step guide to strategies, applications and
Sloan Management Review.3-6. Bornstein, S.D. & skills. Harlow: Pearson Education Limited.
Scarborough, M. 2007. Fighting failure. Community [29]. McMahon, E. F. (2013). Understanding small
Banker, 16(5), 38 40. businesses. Mustang: Tate Publishing.
[11]. Boysana, L.M. (2006). An explanation of the factors [30]. Menon, M. (2011). SMEs & Cash Flow, Management
that led to failure of small businesses in Kagiso Importance of cash flow management to make an
TownShip, Planning, Management and Performance, SME Bankable’ NYC: Pearson Publishing.
Fifth Edition, BBP learning Media Limited

ISSN No:-2456-2165
[31]. Miller, M., & Orr (1966). A model for demand of cash [48]. Pandey, M.I. (2004). Financial Management. 9th Ed.
by firms. Quarterly journal of Economics, 80(1), 413- New Delhi: Vikas Publication Business PVT Ltd.
435. Effective Financial Management”. Canadian Social
[32]. Mohd, K. H., & Mat S. A., (2013). “A proposed Science, 9 (5), 188- 191.
framework for redefining SMES in Malaysia: One [49]. Patel, U. (2010). Cash Management at Indian oil
industry one definition? Universiti Teknologi Mara Corporation Ltd. Master’s in business administration,
[33]. Mong, D. (2011). Follow the cash: Lessons for Diyil press. Patil University.
Capstone business courses. Journal of business & [50]. Raheman, A., & Nasri, M. (2007). Working capital
Economics research, 9(12), 33-44. management and profitability – case of Pakistani
[34]. Moore, J., William, P., & Longernecker, J. (2010). Firms. International Review of Business Research
Managing Small business: An entrepreneural papers, 3 (1), 279-300
emphasis. 15th ed. Australia: South-Western/Cengage [51]. Salazar, A. L. (2012). The impact of financial
Learning. decisions and strategy on small business
[35]. Mugenda, O. M. & Mugenda, A. G. (2008), Research competitiveness. Global Journal of business research,
Method Quantitative &Qualitative Approaches: 6 (2):93-94.
Nairobi Kenya: acts Press. [52]. Shin, H., & Soenen, L. (1998). Efficiency of working
[36]. Muflow, A.N. (2015). Assessment of cash capital management and cooperate profitability.
management strategies of small business in Nakuru Financial practice Education, 8 (2), (37-44)
County,Kenya. International Journal of Economics, [53]. Stewart, J. (2012). Financing problems stunt small-
Commerce and Management, 3(5), 1476-1486. business growth: Survey. American Banker, 177(79),
[37]. Mungai, A. (2014). The impact of cash management 11-22.
on profitability and sustainability of small retail [54]. Univ, B. (2014). Startup Business failure rate by
businesses in the Tongaat area, KwaZulu-Natal. industry. Entrepreneur Weekly, 1(5), 66-89
Published Master of Technology Report, Durban [55]. Uwuige, O., Uwaloma, U., & Egbide, B.C. (2011).
University of Technology, South Africa. Cash management and corporate profitability: A
[38]. Nasir, M.S. (2009). Impact of working capital Study of listed Manufacturing firms in Nigeria. Acta
aggressiveness on firm’s profitability, IABR & TLC Universitatis Danubius Oeconomica, 8(1), 49-59.
conference proceedings, San Antonio Texas, USA [56]. Sharma, A.K. and Kumar, S. (2011). Effect of
[39]. Nassiuma D. K. (2000). Survey sampling: Theory and working capital management on firm profitability:
methods. Njoro, Kenya: Egerton University Press. Empirical evidence from India. Global business
[40]. Ndung’u, D.T. (2016). Determinants of capital review, Vol. 12 (1), pp. 159-173
structure of microfinance banks in Kenya, [57]. Vasant, D. (2009), Entrepreneurship Development:
unpublished master’s thesis. Retrieved on 16th Mumbai, Himalaya publishing house.
October from http://ir.kabarak.ac.ke:8080/xmlui/ [58]. Velnamby T. Kajananthan, D. (2013). Cash position
handle/123456789/60 and profitability of Telecommunication sector in Sri
[41]. Nick, S. (2009). Cashflow ignorance is big problem Lanka, Effectives Journal of Social Sciences, 3(6),
for firms. Domimion Press, Turkey. 324-333.
[42]. Nwankwo, O., & Osho, G. (2010). An Empirical [59]. Yaqub & Husai (2010). Micro-Entrepreneurs:
Analysis of Corporate Survival and Growth: Evidence Motivations, success factors and challenges,
from efficient working capital management. International research journal and economics, Vol .56
International Journal of Scholarly Academic 2010
Intellectual Diversity, 12(1), 1-13. [60]. Watson, D., & Head, A. (2010). Corporate Finance:
[43]. Nyanamba, S.O. (2011).An Evaluation of the Factors Principles and Practice, England: Prentice Hall Inc.
that Determine the Capital Structure among Micro- [61]. Zanyawati, M.A., Annura, M.N., Taufiz, H., &
Enterprises: A Case Study of Micro-Enterprises in Rahimu, A.S.A (2008). Working capital management
Kisii Town, Kenya. Unpublished MBA Report, and corporate performance: A case of Malaysia.
Egerton University, Kenya. Journal of modern accounting and Auditing, 5 (11), 47
[44]. Okwena, K.D., Okioma, T. and Onsonflow, E.N. – 54.
(2011). Effects of cash management practices on [62]. El Haddad, R., Roper, A., & Jones, P. (2008). The
operational sustainability of selected public hospitals. impact of revenue management decisions on
Working paper, Kisii University College, Kenya customers attitudes and behaviours: A case study of a
[45]. Orodho, J.A. (2005). Techniques of writing Research leading UK budget hotel chain. In EuroCHRIE 2008
proposals Report. Kenyatta University; Kanezja, HP Congress.–Dubai: Emirates hotel school.
Publishers. [63]. Cross, R. G. (1997). Launching the revenue rocket:
[46]. Oso, W., & Onen, D. (2008). A Genearal Guide to how revenue management can work for your business.
Writing Research Proposals and Report. Handbook Cornell Hotel and Restaurant Administration
for beginning Research (2nd). Uganda, Kampala; Quarterly, 38(2), 32-43.
Makerere University. [64]. Kimes, S.E. (2004). Revenue Management: a
[47]. Pandey, I.M., (2008). Financial Management, 9th Retrospective. Cornell Hotel and Restaurant
Edition, Vikas Publishing Business PVT. Administration Quarterly, 44: 131-138.

ISSN No:-2456-2165
[65]. Meyer, R. L. (2002). Track record of financial
institutions in assisting the poor in Asia (No. 49).
ADBI Research Paper Series.
[66]. Rahman, M. A., & Mazlan, A. R. (2014).
Determinants of financial sustainability of
microfinance institutions in Bangladesh. International
Journal of Economics and Finance, 6(9), 107-116.
[67]. Nyamsogoro, G. D. (2010). Financial Sustainability of
Rural Micro Finance Institutions (MFIs) in Tanzania
(Doctoral dissertation, University of Greenwich).
[68]. Nyamsogoro, G. D. (2010). Financial sustainability of
rural microfinance institutions (MFIs) in Tanzania
(Doctoral dissertation, University of Greenwich).
[69]. Sintha, L. (2020). Importance of Break-EVEN
analysis for the micro, small and medium enterprises.
International Journal of Research-
GRANTHAALAYAH, 8(6).
[70]. Bertsimas, D., & Vayanos, P. (2017). Data-driven
learning in dynamic pricing using adaptive
optimization. Optimization Online, 20.
[71]. Bailey, C., Baines, P. R., Wilson, H., & Clark, M.
(2009). Segmentation and customer insight in
contemporary services marketing practice: why
grouping customers is no longer enough. Journal of
Marketing Management, 25(3-4), 227-252.]

Effect of Revenue Management On Financial Sustainability of Smes in Rwanda

Uploaded by

Copyright:

Available Formats

Effect of Revenue Management On Financial Sustainability of Smes in Rwanda

Uploaded by

Document Information

Original Title

Copyright

Available Formats

Share this document

Share or Embed Document

Sharing Options

Did you find this document useful?

Is this content inappropriate?

Copyright:

Available Formats

Effect of Revenue Management On Financial Sustainability of Smes in Rwanda

Uploaded by

Copyright:

Available Formats

Volume 8, Issue 12, December – 2023 International Journal of Innovative Science and Research Technology

Effect of Revenue Management on Financial

IJISRT23DEC1787 www.ijisrt.com 2361

IJISRT23DEC1787 www.ijisrt.com 2362

II. METHODOLOGY  Validity of the Instrument

IJISRT23DEC1787 www.ijisrt.com 2363

IJISRT23DEC1787 www.ijisrt.com 2364

IJISRT23DEC1787 www.ijisrt.com 2365

Table 3 Liquidity Management on Financial Sustainability for SMEs

IJISRT23DEC1787 www.ijisrt.com 2366

Table 4 Revenue Control on Financial Sustainability

IJISRT23DEC1787 www.ijisrt.com 2367

Table 5 Level of Financial Sustainability of SMEs in Muhanga District

IJISRT23DEC1787 www.ijisrt.com 2368

IJISRT23DEC1787 www.ijisrt.com 2369

The Pearson’s r for the correlation between the  Model Summary

Table 7 Model Summary

IJISRT23DEC1787 www.ijisrt.com 2370

 Regression Coefficients Y = Sustainability of SMEs of SMEs, ₀ = Constant, ₁ =

Table 9 Regression Coefficients

IJISRT23DEC1787 www.ijisrt.com 2371

V. CONCLUSION AND RECOMMENDATIONS  Conclusion

IJISRT23DEC1787 www.ijisrt.com 2372

IJISRT23DEC1787 www.ijisrt.com 2373

IJISRT23DEC1787 www.ijisrt.com 2374

IJISRT23DEC1787 www.ijisrt.com 2375

You might also like