WORKING CAPITAL TURNOVER IN MICRO AND SMALL ENTERPRISES

Financial Management is an important management activity which deals with the planning and controlling of the Business organisation’s funds. A good decision of working capital or short-term investment decision ensures proper liquidity and profitability of any business organisation. For any business firm inadequate as well as surplus working capital situations are not good. Hence, a firm should see that there will be adequate working capital level. This equally applies to MSMEs. During the last five Decades MSME sector had become crucial in Indian Economy. In recent days, MSME sector has become one of the strong pillars of Indian Economy. Nearly thirty percent of GDP comes from this sector. Majority of micro and small enterprises in Andhra Pradesh state of India are either maintaining excess levels of working capital or suffering from shortage of working capital. Under this backdrop, present study namely working capital turnover in selected micro and small enterprises in Andhra Pradesh state in India is done to assess working capital turnover in these enterprises.