Management of working capital in small and medium scale enterprise
Table Of Contents
- PagesTitle
page – – – – – – – – – iDeclaration – – – – – – – – – iiCertification
– – – – – – – – – iiiDedication
– – – – – – – – – ivAcknowledgements
– – – – – – – – vTable
of Contents – – – – – – – – viList
of Tables – – – – – – – – xAbstract
– – – – – – – – – xiCHAPTER
1: INTRODUCTION1.0 Introduction – – – – – – – –
- 11.1 Background of the Study – – – – – –
- 21.2 Statement of the Problem – – – – – –
- 81.3 Purpose of the Study – – – – – –
- 101.4 Research Questions – – – – – – –
- 121.5 Research Hypotheses – – – – – – –
- 131.6 Limitation of the Study – – – – – – 14CHAPTER
TWO2.0 Review of Related Literature – – – – –
- 162.1 Conceptual Framework – – – – – –
- 162.2 Sources of financing working capital by
SMEs – – –
- 202.3 Cash Management Practices Required by
SMEs – – –
- 212.4 Factors Influencing Working capital
Management – – –
- 222.5 Challenges and Importance of Working
Capital Management –
- 222.6 Characteristics, problems and roles of
SMEs – – – –
- 242.7 Theoretical Framework – – – – – – 282.
- 7.1 Carl Max’s Approach to Working Capital
Management – – 282.
- 7.2 David Ricardo’s Approach to Working Capital
Management – 292.
- 7.3 Moderate Approach to Working Capital
Management – – 312.
- 7.4 Aggregate Approach to Working Capital
Management – –
- 322.8 Related Empirical Studies – – – – – –
- 332.9 Summary of Literature – – – – – – 36CHAPTER
THREE3.0 Methodology
– – – – – – – –
- 393.1 Selecting of Data – – – – – – –
- 393.2 Area of the Study – – – – – – –
- 393.3 Collection of Data – – – – – – –
- 403.4 Design and Administration of
Questionnaire – – –
- 403.5 Sample Size and Sampling Technique – – – –
- 413.6 Data Analysis Technique – – – – – –
- 413.7 Criteria for Deciding the Validity of
Hypothesis – – –
- 423.8 Test of Independence of classification – – – –
- 433.9 Determination of Critical Values – – – – – 44
Chapter FOUR
DATA PRESENTATION AND ANALYSIS
- PRESENTATION AND ANALYSIS OF DATA
- 4.0 Introduction – – – – – – – – 45
- 4.1 Descriptive Analysis – – – – – – – 45
- 4.2 Analysis of Data – – – – – – –
- 474.3 Test of Hypothesis – – – – – – – 514.
- 3.1 Testing of Hypothesis – – – – – – 514.
- 3.2 Testing of Hypotheses – – – – – – 544.
- 3.2 Testing of Hypothesis Three – – – – – – 56
Chapter FIVE
SUMMARY, CONCLUSION AND RECOMMENDATIONS
- CONCLUSION AND RECOMMENDATIONS5.0 Summary – – – – – – – –
- 585.1 Implications
for Business Education/SMEs Operators – –
- 585.2 Conclusion – – – – – – – –
- 595.3 Recommendations – – – – – – –
- 605.4 Suggestions
for Further Studies – – – – – 62References – – – – – – – – 63Appendix – – – – – – – – 65 LIST OF TABLES Table
- 4.1 Total Numbers of
Questionnaires sent and received by Respondents – &n
Thesis Abstract
Abstract
Effective management of working capital is crucial for the sustainability and growth of small and medium scale enterprises (SMEs). This research project explores the various strategies and techniques that SMEs can implement to optimize their working capital management. The study begins by examining the importance of working capital in the context of SMEs and how it directly impacts their financial health and operational efficiency. It delves into the key components of working capital, including cash, accounts receivable, inventory, and accounts payable, and highlights the interplay between these elements in the day-to-day operations of SMEs. Furthermore, the research investigates the common challenges faced by SMEs in managing their working capital effectively, such as cash flow constraints, inventory management issues, and late payment from customers. By identifying these challenges, the study aims to provide practical solutions and best practices that SMEs can adopt to overcome these hurdles. The project also explores the role of financial management tools and technologies in enhancing working capital management for SMEs. It discusses the benefits of using financial software, cash flow forecasting tools, and other digital solutions to monitor and optimize working capital on a real-time basis. Moreover, the research delves into the importance of establishing strong relationships with suppliers, customers, and financial institutions to support working capital management efforts. It emphasizes the significance of negotiating favorable payment terms with suppliers, incentivizing early payments from customers, and securing access to external sources of financing when needed. Additionally, the study examines the impact of effective working capital management on the overall financial performance and competitiveness of SMEs. It highlights how a well-managed working capital cycle can lead to improved profitability, liquidity, and risk management for SMEs, ultimately contributing to their long-term success and sustainability. In conclusion, this research project provides valuable insights and recommendations for SMEs looking to enhance their working capital management practices. By implementing the strategies and techniques outlined in this study, SMEs can optimize their cash flow, minimize financial risks, and position themselves for growth and expansion in today's competitive business environment.
Thesis Overview