CASH FLOW FORECAST AND GROWTH OF FAMILY-OWNED SMALL ENTERPRISES IN NAIROBI COUNTY, KENYA

MOHAMAD ABDIRAHMAN, MOSES KITHINJI, DOREEN MUTEGI

Abstract


This study examined the influence of cash flow forecasting on the growth of FOSEs in Kenya. The research was anchored on Liquidity Preference Theory. The study adopted a descriptive survey design targeting 44,386 registered family-owned enterprises operating in Nairobi County. A sample of 396 businesses was drawn using stratified random sampling. Data were collected using structured questionnaires and analyzed using descriptive statistics, correlation, and multiple regression analysis. Findings revealed that cash flow forecasting significantly influenced the growth of FOSEs in Kenya. Cash flow forecasting exhibited a strong positive relationship with growth, indicating that businesses engaging in regular and structured forecasting achieved improved financial planning, stability, and reinvestment capabilities. The study concluded that structured and integrated cash flow management practices are instrumental to the financial resilience and growth of FOSEs I Kenya. It recommended that enterprise owners institutionalize digital cash flow tools. The study further calls on policymakers to develop tailored financial literacy and technology adoption programs to support small enterprise development. Financial institutions are encouraged to offer training and products that reinforce strong cash flow forecasting.

Key Words: Cash Flow, Forecasting, Family Owned Business

CITATION: Abdirahman, M., Kithinji, M., & Mutegi, D. (2025). Cash flow forecast and growth of family-owned small enterprises in Nairobi County, Kenya. The Strategic Journal of Business & Change Management, 12 (2), 1554 – 1569. http://dx.doi.org/10.61426/sjbcm.v12i2.3289


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DOI: http://dx.doi.org/10.61426/sjbcm.v12i2.3289

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