A Study on Working Capital Efficiency in SMES with Reference to Telangana State

1.    BANOTH MAHENDAR (24UJ1E00D4) Student of 2nd Year MBA,

Malla Reddy Engineering College and Management Sciences, Medchal, Hyderabad – 501 401.

2.    D THARANGINI, Assistant Professor Dept of MBA,

Malla Reddy Engineering College and Management Sciences, Medchal, Hyderabad – 501 401

ABSTRACT

Working capital efficiency is essential for maintaining liquidity, operational continuity, profitability, and sustainable growth in small and medium-sized enterprises (SMEs). This study examines working capital efficiency in SMEs with reference to Telangana State, focusing on cash management, inventory management, receivables, current liabilities, liquidity, profitability, and operational efficiency. Primary data were collected from 100 respondents through a structured questionnaire, supported by secondary information. The findings indicate that effective working capital practices improve liquidity, reduce financial risk, support profitability, strengthen operational efficiency, and promote sustainable business growth. The study provides useful insights for improving financial management practices among Telangana SMEs and stability.

Keywords: Working Capital, SMEs, Liquidity, Profitability, Financial Management