Sunday, K.J. (2011). Effective Working Capital Management in Small and Medium Scale Enterprises (SMEs) - International Journal of demarcation & Management, Vol 6, No.9, Sep 2011.
Introduction -
This believe has been undertaken to achieve the avocation objectives with regard to the counsel of working chief city in spite of appearance SMEs in Nigeria. (1). appraise the effect of working capital on the solvency and fluidity of SMEs. (2). Evaluate other methods of debt payments other than payment out of cash. (3). Evaluate or establish an optimal working capital calendar method that will encourage payment of debtors using short barrier sources of funds. (4). Evaluate and propose appropriate working capital instruction for SMEs in Nigeria.
The inquiry questions addressed by the study included (1). Do SMEs maintain an appropriate working capital management policy system? (2). Is the failure of most SMEs a result of poor working capital management? (3). Is rough-and-ready working capital management of value to the survival and solvency of SMEs?
The seek analysis comprised of a comparison in the midst of 2 dissimilar SMEs legitimately involved in separate industry sectors, viz. the manufacturing and service industry.
A comparison was then made between the two companies comprising the use of current ratios, in particular the current liquidity ratio and current asset ratios, debtor order period, and creditor payment period.
Summary
The intentions of the author were too identify and foreground the importance of effective working capital management within SMEs, and how failure to adopt a working capital management policy can and often results in business failure. The research also provided insight into other areas of interest relating to the topic. These areas could have been positive further and backed up with supporting data, namely (1). The problems associated with delineate the scale and structure of an SME. (2).The current concept of existing pay structures or lack thereof....If you want to get a spacious essay, order it on our website: Orderessay
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