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It seeks to keep in view the socio economic environment in India, where capital is scarce and labor is abundant. However, a definition exist only for tiny and small units, medium sized enterprises are not defined either technically or legally. Industrial undertaking in which the investment in fixed assets in plant and machinery, excluding land and building, whether held on ownership terms or on lease or on hire purchase, does not exceed Rs. 1 Crore.
WORKING CAPITAL MANAGEMENT
Decisions relating to working capital and short term financing are referred to as working capital management. These involve managing the relationship between a firm's short-term assets and its short-term liabilities. The goal of working capital management is to ensure that the firm is able to continue its operations and that it has sufficient cash flow to satisfy both maturing short-term debt and upcoming operational expenses.
Significant role in the development of an economy they face many problems and one such problem is the timely availability of working capital. …show more content…
So it is significant to understand the business environment and how it creates a problem like scarcity of working capital of an enterprise. The study undertaken is also important so as to ascertain the impact of non-availability of working capital in time to
SME’s, on SME’s, large enterprises and the economy as a whole.
NATURE OF THE STUDY: STATEMENT OF THE PROBLEM
The problem which is addressed in this study is one of the most talked about issue i.e. the problem of timely availability of working capital to SME’s. The above mentioned problem will be addressed in this study by a detailed literature review from various available sources and through a case study of an SME facing this problem.
Objectives 1. To find out Working capital management problems in sme’s. 2. To find out effects of working capital management on profitability of sme’s. 3. To find out effective solutions for working capital management problem in
WORKING CAPITAL MANAGEMENT
Decisions relating to working capital and short term financing are referred to as working capital management. These involve managing the relationship between a firm's short-term assets and its short-term liabilities. The goal of working capital management is to ensure that the firm is able to continue its operations and that it has sufficient cash flow to satisfy both maturing short-term debt and upcoming operational expenses.
Significant role in the development of an economy they face many problems and one such problem is the timely availability of working capital. …show more content…
So it is significant to understand the business environment and how it creates a problem like scarcity of working capital of an enterprise. The study undertaken is also important so as to ascertain the impact of non-availability of working capital in time to
SME’s, on SME’s, large enterprises and the economy as a whole.
NATURE OF THE STUDY: STATEMENT OF THE PROBLEM
The problem which is addressed in this study is one of the most talked about issue i.e. the problem of timely availability of working capital to SME’s. The above mentioned problem will be addressed in this study by a detailed literature review from various available sources and through a case study of an SME facing this problem.
Objectives 1. To find out Working capital management problems in sme’s. 2. To find out effects of working capital management on profitability of sme’s. 3. To find out effective solutions for working capital management problem in