Working Capital Management Practices of Immigrant Entrepreneurs in South Africa

Abstract

The study investigated the working management practices of immigrant entrepreneurs in South Africa. Effective working capital management is critical to the survival of firms. Data was collected through the use of self-administered questionnaire in a survey. Convenience sampling and the snowball sampling methods were used. Descriptive statistics was used for data analysis. The results showed that immigrant entrepreneurs on the average keep accounting books. The use of computer for operations is limited. Most of the respondents have bank accounts, do not bank their takings daily and do not prepare cash budgets. Most of the respondents buy and sell on credit. There is no written credit policy in place. Recommendations to improve the working capital management practices of immigrant entrepreneurs are suggested.

DOI: 10.5901/mjss.2014.v5n10p52