The effectiveness working capital management small and medium enterprises (Smes) surabaya

This study is determined to analyse the effectiveness of working capital on the Siola MSME Central in Surabaya This research uses the effectiveness ratio to assess the minimum cash balance, gross working capital turnover, accounts receivable turnover and inventory turnover The method used was a qualitative descriptive approach by using quantitative data This research was conducted on the Siola MSME Central in Surabaya which was built by the local government The path analysis results show that the working capital on the Siola MSME Central is relatively less effective, with the minimum cash balance is on average of 0 32 times, the average gross working capital turnover is 0 20 times, the average accounts receivable turnover is 0 65 times while the inventory turnover is 1 85 times in each period of its cycle The results of this study also indicate that the working capital management ability of each MSME business proprietor determines the effectiveness of the working capital itself © IEOM Society International