Analysis of The Situation of The Working Capital Administration in MSMES of the Commercial Sector in Mexico
Journal: The Journal of Middle East and North Africa Sciences (Vol.6, No. 08)Publication Date: 2020-08-02
Authors : Itzel Monserrat Pérez Hernández; Karla González Hidalgo; Elizabeth Montiel Huerta;
Page : 1-6
Keywords : Working capital; administration; MSMEs.;
Abstract
Working capital is an important part within the administration of SMEs, it represents current assets and short-term liabilities which are essential for the daily operation of the company. For this reason, it is necessary for administrators of MSMEs to know what this term refers to and why they should have proper management of it. The purpose of this article is to publicize the situation of MSMEs in the commercial sector, as well as the importance of working capital in them. A documentary investigation obtained from secondary sources, such as books and scientific articles, was carried out. From this, the theoretical foundations were reviewed, as well as the main causes of failure of MSMEs. In conclusion, the life expectancy of SMEs in the commercial sector is very low due to various factors, among which is their poor administration of working capital, for which reason proper management of this item is important in order to obtain economic resources. necessary to solve the daily operations of companies.
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