The Role of Financial Management Strategies on SMEs; A Case Study of Ma’lin Harun District, Hargeisa, Somaliland

Abstract:   The purpose of this research was focused on the role of financial management in small and medium enterprises in Ibrahim Ma’lin Harun District in Hargeisa, Somaliland. It was determining the role of financial management in small business and medium enterprises, and capital acquisition, and financial management decision, and effect of financial management on profitability.

This study adopted a descriptive survey design with a population study of 65 companies out of which a sample size of 49 was chosen. The study used simple random sampling design to choose a sample and questionnaires were distributed to the selected respondents from the companies. The analytical process entailed using the Statistical Package for the Social Sciences (SPSS). The study indicates that financial management strategies are very critical in all business enterprises irrespective of the size and location. Finally, according to the data, the study concluded that financial management increases the overall value of the firms and organization by providing economic stability.

       Keywords: Financial Management,  Small And Medium-Sized Enterprises, Profitability, Financial Literacy, Financial Management Skills

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