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Please use this identifier to cite or link to this item: http://hdl.handle.net/123456789/3161

Title: IMPACT OF WORKING CAPITAL MANAGEMENT ON PROFITABILITY OF SMALL AND MEDIUM SCALE ENTERPRISES (SMES) IN ADDIS ABABA (The Case of Nifas-Silk-Lafto and Kirkos Sub Cities)
Authors: WOLDU, EPHREM
Advisors: Venkati Ponnala (Dr.)
Keywords: net operating profitability, small and medium enterprises, working capital management
Copyright: Jun-2011
Date Added: 5-Jun-2012
Abstract: Small and medium enterprises occupy a prominent position in the development agenda of many developing countries like Ethiopia. The number of SMEs in Ethiopia is steadily growing. But, much more important than their number is their current status, stage and pace of development. Despite the tremendous increase in number of SMEs, little research exists that examines working capital management of small and medium enterprises (SMEs) in developing countries, especially in Ethiopia. The purpose of the study is to identify the impact of working capital management on the performance of the SMEs in Nifas silk and Kirkos sub cities and to give recommendations based on the problems. In doing so both Primary and secondary data was collected from 30 SMEs in those Sub cities of the capital city; Addis Ababa. The primary data was collected through the use of questionnaires and secondary data was gathered from the financial statements of the enterprises. The population of the study includes all SME’s operating within organization for women in self employment (WISE). Data analysis was done using descriptive statistics and quantitative methods (correlation and regression). The findings of the paper suggest that working capital is negatively affected by the time period required by the enterprises to receive their debts, pay their bills and collect cash. Beside that the financial leverage, size and current ratio of those SME’s under study have impact on the availability of adequate working capital requirements.
Description: A THESIS SUBMITTED TO SCHOOL OF BUSINESS AND PUBLIC ADMINISTRATION OF ADDIS ABABA UNIVERSITY IN PARTIAL FULFILLMENT OF THE REQUIREMENTS FOR THE MASTERS OF SCIENCE (MSC) IN ACCOUNTING AND FINANCE
URI: http://hdl.handle.net/123456789/3161
Appears in:Thesis - Accounting & Finance

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