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Cash Flow Management in Australian SMEs

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Added on  2020-03-16

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In this particular research proposal, the fundamental issues of cash flow management in the Australian SMEs are discussed providing secondary literature and practical evidence related to the study. Precisely, Australian SMEs are largely affected by poor cash flow management as growth tensions of the economy have added monetary pressure on the firms. Effectively, the proposal has been set up following three sections. 

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Cash Flow Management in Australian SMEs

   Added on 2020-03-16

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Running Head: RESEARCH PROPOSAL1The issues of cash flow management influences the sustainability and survival of SMEs inAustraliaFollowing the guidelines of the course ID guidelinesStudent’s NameUniversity
Cash Flow Management in Australian SMEs_1
RESEARCH PROPOSAL2Table of ContentsSection I...........................................................................................................................................3Introduction..................................................................................................................................3Problem Statement.......................................................................................................................4Research Objectives and Questions.............................................................................................4Justification of the Project............................................................................................................5Research Output...........................................................................................................................6Section II..........................................................................................................................................8Conceptual Framework and Research Hypothesis.......................................................................8Methodology..............................................................................................................................11Section III......................................................................................................................................13Organisation of the Study..........................................................................................................13Gantt chart..................................................................................................................................14Project Budget and Justification................................................................................................14References......................................................................................................................................16
Cash Flow Management in Australian SMEs_2
RESEARCH PROPOSAL3Section IIntroductionIn the modern business environment, the role of Small and Medium Enterprises (SME’s)towards the economic growth of a nation cannot be ignored. In case of Australian economy,SMEs play a leading contribution in job creation and revenue growth of the economy. As of June2016, 2.17 million registered trading businesses are operating in Australia up by 2.4 percent fromJune 2015 (Abs.gov.au, 2017). Moreover, the turnover of the Australian SMEs is also significantsince the past decade or so. However, global growth challenges and plunging prices ofcommodity such as crude and coal have become one of the major worries for the SMEs inoperating their businesses at different levels. Due to cuts in government spending and low GDPgrowth of the nation, SMEs in Australia have to face massive headwinds to manage the cashflow associated to the business.In this particular research proposal, the fundamental issues of cash flow management inthe Australian SMEs are discussed providing secondary literature and practical evidence relatedto the study. Precisely, Australian SMEs are largely affected by poor cash flow management asgrowth tensions of the economy have added monetary pressure on the firms. Effectively, theproposal has been set up following three sections. In section I, an introduction of the issue,problem statement, research objectives and questions, justification of the proposed study, andexpected outcome from the research have been briefly stated. In the following section II, theconceptual framework, hypothesis of the proposed research, and methodology have beendescribed. At last, section III includes organisation of the research, Gantt chart, and effectivebudget to be mandatory to conduct the study.
Cash Flow Management in Australian SMEs_3
RESEARCH PROPOSAL4Problem StatementIn case of Small and Medium Enterprises (SMEs), managing cash flow of businesses canbe identified as one of the leading business challenges. Precisely, there are a number of issuesaffecting the cash flow management of SMEs in Australia that have been the major discussiontopic for this particular study. In order to maintain growth of SMEs businesses, management ofcash flow must be done in a resilient manner so that business investment will be increased atregular intervals (Jury, 2012). Evidently, the leading problem associated with cash flowmanagement is collection of money from the clients. Fundamentally, SMEs have found itdifficult at times to collect the money from the leading business clients (Qazi, 2011). Due toeconomic downturns and shortcomings, larger firms have tactically delayed the payments ofSMEs. As a result of the scenario, financial crisis can be seen within the firms. Meanwhile, limited financial resources and investment prospects have restricted theSMEs to make continuous losses (Gamble, 2010). As SMEs show greater dependence of majorclients, delay of payments can become one of the major issues to be dealt with in managing cashflow. Also the SMEs have lower leverage to corporate finance as high-profile investors arelooking to invest money in large cap businesses. Therefore, financial limitation of the SMEs hasbecome one of the major issues in cash flow management (Lin, 2012). Simultaneously, in case ofdeveloping financial arrangements, financial issues can drag down the financial decisions of theSME managers. In order to control the adverse effect of the issues, the study will be imperativeto analyse the issues and find out solutions according to the need.Research Objectives and QuestionsThe primary objective of the research is to identify and investigate the problems faced bythe small and medium scale organisations of Australia in handling cash flow and maintaining a
Cash Flow Management in Australian SMEs_4

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