Cash Flow Management Strategies for E-Commerce: A Financial Sustainability Framework in Nigeria

Abstract

The study examined Cash Flow Management Strategies for E-commerce Entrepreneurs within a Financial Sustainability Framework in Nigeria, focusing specifically on the effects of Days Sales Outstanding (DSO) and Days Payables Outstanding (DPO). A descriptive research design was adopted, using a four-point Likertscale questionnaire to obtain data from e-commerce entrepreneurs in the southeastern region of Nigeria. Data were analysed using descriptive and inferential statistics with the aid of the Statistical Package for the Social Sciences (SPSS). While descriptive statistics were used to summarise the socio-demographic information of respondents, simple linear regression analysis was employed to test the hypotheses. The results revealed that Days Payables Outstanding has a significant effect on E-commerce Entrepreneurs' financial sustainability with a P-value of (0.007 < 0.05), and Days Sales Outstanding has a significant positive effect with a P-value of (0.002 < 0.05). The study concluded that Cash Flow Management Strategies have a significant effect on the financial sustainability of e-commerce entrepreneurs in Nigeria. The study recommended that ecommerce entrepreneurs implement stricter credit policies and employ digital payment platforms to reduce the time lag between sales and cash receipts.