Abstract:
Working Capital Management affects the Profitability of a small and medium enterprise in
Rwanda. Generally working capital consists of various components of current assets like
inventories, bills, receivables, debtors, cash and bank balances and prepaid expenses. This
implies that enterprises main target is making profits and this can only be successful if working
capital concepts stated are fully managed.
This research aims to analyze the significant effect of working capital management on
profitability of an enterprise in Rwanda.
Working capital management affects profitability and this leads to development of an SME.
Therefore what is the level of managing all the components of managing capital in SMEs? How
does each relate to the other? What is the correlation of their relationship impact the success of
the business entity? This indicates that there is a gap for appropriate management of capital in
SMEs, what can be done to enlace working capital management and all its components in
growing SMEs?
