LIQUIDITY MANAGEMENT AND ACCESS TO FINANCE DRIVE FIRM GROWTH AMONG TONY ELUMELU FOUNDATION-SPONSORED ENTREPRENEURS

Abstrak

The entrepreneurship sponsorship programs have assumed the center stage towards encouraging firm growth and economic development within Africa. This study explored the financial management issues affected by Tony Elumelu Foundation (TEF) sponsored entrepreneurs and how they impact the performance of firms. Quantitative explanatory design was implemented by applying the SEM-PLS with 366 TEF alum data gathered by the online survey. Constructs which have been measured were: bookkeeping and record management, cash flow and liquidity management, access to finance and capital constraints, and cost control, pricing, and growth investment. The findings indicated that cash flow and liquidity management had the most significant impact on the growth of firms, followed by access to finance and bookkeeping. Cost control and pricing practices had lesser and yet theoretically significant contributions. The model explained the performance of the firm by 59.8 percent, indicating that financial management practices are substantial factors in determining entrepreneurial performance. This research finds that to change the sponsorship into sustainable business development, sound financial management is required and suggests specific training, access to finance, and helpful policy changes. The findings give practical implications for entrepreneurship programs and policymakers who aim to enhance the viability of sponsorship programs in the African economies over time.

Kata kunci

• Access to finance
• Entrepreneurship
• Film growth
• Liquidity management
• bookkeeping