Management of working capital in small and medium scale enterprise
Table Of Contents
- <p> <b></b></p><p><b> <b> Pages</b></b></p><p><b><b></b></b></p><b><b><p>Title<br>page – – – – – – – – – i</p><p>Declaration – – – – – – – – – ii</p><p>Certification<br> – – – – – – – – – iii</p><p>Dedication<br> – – – – – – – – – iv</p><p>Acknowledgements<br> – – – – – – – – v</p><p>Table<br>of Contents – – – – – – – – vi</p><p>List<br>of Tables – – – – – – – – x</p><p>Abstract<br> – – – – – – – – – xi</p><p><b>CHAPTER<br>1: INTRODUCTION</b></p><p>
- 1.0 Introduction – – – – – – – –<b> 1</b></p><p>
- 1.1 Background of the Study – – – – – – 2</p><p>
- 1.2 Statement of the Problem – – – – – – 8</p><p>
- 1.3 Purpose of the Study – – – – – – 10</p><p>
- 1.4 Research Questions – – – – – – – 12</p><p>
- 1.5 Research Hypotheses – – – – – – – 13</p><p>
- 1.6 Limitation of the Study – – – – – – 14</p><p><b>CHAPTER<br>TWO</b></p><p>
- 2.0 Review of Related Literature – – – – – 16</p><p>
- 2.1 Conceptual Framework – – – – – – 16</p><p>
- 2.2 Sources of financing working capital by<br>SMEs – – – 20</p><p>
- 2.3 Cash Management Practices Required by<br>SMEs – – – 21</p><p>
- 2.4 Factors Influencing Working capital<br>Management – – – 22</p><p>
- 2.5 Challenges and Importance of Working<br>Capital Management – 22</p><p>
- 2.6 Characteristics, problems and roles of<br>SMEs – – – – 24</p><p>
- 2.7 Theoretical Framework – – – – – – 28</p><p>2.
- 7.1 Carl Max’s Approach to Working Capital<br>Management – – 28</p><p>2.
- 7.2 David Ricardo’s Approach to Working Capital<br>Management – 29</p><p>2.
- 7.3 Moderate Approach to Working Capital<br>Management – – 31</p><p>2.
- 7.4 Aggregate Approach to Working Capital<br>Management – – 32</p><p>
- 2.8 Related Empirical Studies – – – – – – 33</p><p>
- 2.9 Summary of Literature – – – – – – 36</p><p><b>CHAPTER<br>THREE</b></p><p><b></b></p><b><p>
- 3.0 Methodology<br>– – – – – – – – 39</p><p>
- 3.1 Selecting of Data – – – – – – – 39</p><p>
- 3.2 Area of the Study – – – – – – – 39</p><p>
- 3.3 Collection of Data – – – – – – – 40</p><p>
- 3.4 Design and Administration of<br>Questionnaire – – – 40</p><p>
- 3.5 Sample Size and Sampling Technique – – – – 41</p><p>
- 3.6 Data Analysis Technique – – – – – – 41</p><p>
- 3.7 Criteria for Deciding the Validity of<br>Hypothesis – – – 42</p><p>
- 3.8 Test of Independence of classification – – – – 43</p><p>
- 3.9 Determination of Critical Values – – – – – 44 </p><p><b>CHAPTER<br>FOUR: PRESENTATION AND ANALYSIS OF DATA </b><b> </b></p><p><b></b></p><b><p>
- 4.0 Introduction – – – – – – – – 45 </p><p>
- 4.1 Descriptive Analysis – – – – – – – 45 </p><p>
- 4.2 Analysis of Data – – – – – – – 47</p><p>
- 4.3 Test of Hypothesis – – – – – – – 51</p><p>4.
- 3.1 Testing of Hypothesis – – – – – – 51</p><p>4.
- 3.2 Testing of Hypotheses – – – – – – 54</p><p>4.
- 3.2 Testing of Hypothesis Three – – – – – – 56</p><p><b> </b></p><p><b></b></p><b><p><b> </b></p><p><b></b></p><b><p><b> </b></p><p><b></b></p><b><p><b> </b></p><p><b></b></p><b><p><b> </b></p><p><b></b></p><b><p><b> </b></p><p><b></b></p><b><p><b> </b></p><p><b></b></p><b><p><b>CHAPTER<br>FIVE: SUMMARY, CONCLUSION AND RECOMMENDATIONS</b></p><p><b></b></p><b><p>
- 5.0 Summary – – – – – – – – 58</p><p>
- 5.1 Implications<br>for Business Education/SMEs Operators – – 58</p><p>
- 5.2 Conclusion – – – – – – – – 59</p><p>
- 5.3 Recommendations – – – – – – – 60</p><p>
- 5.4 Suggestions<br>for Further Studies – – – – – 62</p><p>References – – – – – – – – 63</p><p>Appendix – – – – – – – – 65</p><p><b> </b></p><p><b></b></p><b><p><b>LIST OF TABLES</b></p><p><b></b></p><b><p><b> </b></p><p><b></b></p><b><p>Table<br>
- 4.1 Total Numbers of<br>Questionnaires sent and received by</p><p> Respondents – &n</p></b></b></b></b></b></b></b></b></b></b></b></b></b></b></b> <br><p></p>
Project Abstract
Effective management of working capital is crucial for the success and sustainability of small and medium-scale enterprises (SMEs). This research project explores the various strategies and techniques that SMEs can employ to efficiently manage their working capital. The study delves into the concept of working capital and its significance in the daily operations of SMEs. It examines the components of working capital, including accounts receivable, accounts payable, and inventory, and how each component impacts the overall liquidity and financial health of the business. Furthermore, the research investigates the common challenges faced by SMEs in managing their working capital, such as cash flow constraints, inventory management issues, and late payments from customers. By identifying these challenges, the study aims to provide practical solutions and recommendations to help SMEs overcome these obstacles and improve their working capital management practices. The project also explores the benefits of effective working capital management for SMEs, including improved cash flow, increased profitability, and better financial stability. By implementing sound working capital management strategies, SMEs can enhance their operational efficiency and competitiveness in the market. Moreover, the research examines various working capital management techniques that SMEs can adopt, such as cash flow forecasting, inventory optimization, and efficient accounts receivable and payable management. These techniques are essential for SMEs to maintain a healthy balance between their current assets and liabilities, ensuring smooth business operations and sustainable growth. In addition, the study discusses the role of financial ratios and key performance indicators (KPIs) in evaluating the working capital position of SMEs. By analyzing these metrics, SMEs can gain valuable insights into their liquidity, solvency, and overall financial performance, enabling them to make informed decisions and adjustments to their working capital management strategies. Overall, this research project highlights the importance of effective working capital management for the success and growth of small and medium-scale enterprises. By implementing the recommended strategies and techniques outlined in this study, SMEs can enhance their financial health, mitigate risks, and seize opportunities for business expansion and development.
Project Overview