WORKING CAPITAL MANAGEMENT PRACTICES AND FINANCIAL SUSTAINABILITY OF RETAIL BOOKSTORES IN NAIROBI CITY COUNTY
Loading...
Date
2025-08
Authors
Journal Title
Journal ISSN
Volume Title
Publisher
THE CATHOLIC UNIVERSITY OF EASTERN AFRICA
Abstract
The financial viability of Nairobi City County's retail bookshops has been threatened by growing operating expenses, declining profit margins, and poor working capital management techniques. The purpose of this study was to ascertain how working capital management techniques affected the retail bookstores in Nairobi city county the ability to remain financially sustainable. In particular, it evaluated the impact of inventory management, accounts payable management, accounts receivable management, and cash management on the financial sustainability of retail bookstores in Nairobi City County. The Free Cash Flow Theory, TradeOff Theory, Resource-Based View Theory, and Economic Order Quantity Theory served as the study's pillars. The study, which used cross-sectional survey design, focused on 67 registered bookstores and received 57 responses. Multiple regression and descriptive statistics were used to analyze the data collected. The results from the data collected and analyzed showed that working capital management practices had a significant impact on financial sustainability. According to the study, bookstores should improve their receivables collection procedures, optimize their credit agreements with suppliers, fortify their cash flow planning and implement effective inventory control systems that are informed by the Economic Order Quantity framework. To improve the retail book industry's resilience and financial sustainability, these tactics are crucial.
Description
Thesis
Keywords
Working capital management, financial sustainability, retail bookstores, cash flow management, liquidity management, financial performance, Nairobi City County, Kenya