"The Impact of Working Capital Management on the Profitability of Small and Medium Scale Enterprises in Rwanda Case Study: Eco Bank Nyagatare

CHAPTER ONE

1.0. Introduction.

This chapter presents the background of the study, the statement of the problem. purpose or the study, objectives of the study, research questions, and scope of the study and signi fica nee of the study. Management of current assets and liabilities is particularly important in the case of small and medium-sized companies (SME's). Most of these companies' assets arc in the form of current assets. Also, current liabilities are one of their main sources of c:xternal finance in view of their difficulties in obtaining funding in the long-term capital markets and the financing constraints that they face. Small and medium-sized firms use vendor financing when they have run out of capital. Thus, efficient working capital management is particular!: important for smaller companies.