A Research On The Limiting Factors Of The Working Capital Management In Micro And Small Companies In The City Of Arinos-MG

Abstract

The study in question discusses the limiting factors of working capital management in SME in a small city in the northwest of the state of Minas Gerais by proposing the following question: What are the limiting factors of working capital management in micro and small companies in Brazil municipality of Arinos-MG? To answer the question raised, the general and specific objectives were to understand the limiting factors of working capital management, raise the profile of managers, describe the instruments, tools, and methodologies used to manage working capital, and investigate the sources of working capital and how these resources flow from micro and small companies. Of a quantitative and descriptive nature, the survey used a survey form from the Google Forms platform to question, via WhatsApp, twenty-nine managers of SME in the retail trade of products in general who have companies with more than three years, sell and are classified as micro and small companies according to Law No. 123/2006. The results show that the factors that contribute to and the problems faced revolving around the short term for payment of suppliers, payment of interest, and taxes, in addition to the need for a loan and bureaucracy to raise funds and not having the documents required by the financial institution; and the main conclusions revolve around the manager's need to continue seeking learning and improve the practice to minimize the short-term impacts of capital scarcity.